![You need to have enough money saved up to feel financially comfortable with your move.](https://www.mymovingreviews.com/move/wp-content/uploads/2023/04/saving-money-for-moving.jpg)
Highlights
- In order to avoid financial problems and ensure a stress-free relocation, you need to have enough money saved up to cover all your moving-related expenses.
- In addition to moving costs, you need to provide for housing expenses and living expenses for the first couple of months after the relocation too.
- The more money you have saved up before moving, the better.
So, you feel like it’s time to move someplace else and open a new page in your life. Thrilling as the idea may be, you should give it a good thought before making the decisive step.
Moving out of your parents’ home may give you the freedom and independence you’ve always wanted; moving to a new city or state may present you with exciting new opportunities; moving to a more prosperous part of the country may ensure your financial stability; relocating to a safer, greener, and friendlier area may bring you greater peace of mind and improve your emotional well-being; and so on, but for all this to work, you need to feel emotionally ready to part with your old life and financially comfortable to afford the relocation.
Costs add up quickly when moving house and you need to be able to cover them without difficulty in order to have a smooth and stress-free relocation experience.
But how much money do you need to move out? How much to save before moving out of state?
It all depends on the living costs in your new area, the amount of items you’ll have to purchase for your new place, the size of your move and the distance to your new home, of course, but you can still get quite an accurate idea of how much money to save for moving out – all you need to do is figure in all the related expenses.
Housing Expenses
Housing expenses are likely to present your biggest financial challenge when you move to a new home.
1) Rent or mortgage
![The best way to save money to move out is to be consistent.](https://www.mymovingreviews.com/move/wp-content/uploads/2016/11/saving-money.jpg)
If you decide to rent a house or an apartment in your new area, you’ll have to provide for:
- The first month’s rent – you’re highly recommended to save enough money for at least three months’ rents (six, if you don’t have a steady income yet – you never know how long it will take to find a good job and secure your financial stability) before moving out;
- A security deposit – the required security deposit is usually the same amount as a month’s rent. You should be able to get your money back when you move out (in case you have kept the place in good condition), but this fact is of little help when renting a place;
- Management fees – a charge for a background and credit check (usually about $50), a charge for hiring a broker to help you find an appropriate home (up to a month’s worth of rent), etc.
Good to remember: If you’re moving long distance and want to choose your new property in person, you’ll have to visit your new city before the move and stay there for several days in order to find a place that meets all your requirements and preferences. In this case, you’ll have to provide for the trip to the city, as well as for meals and lodgings while there.
If you decide to buy a new home, you’ll have to pay the mortgage and closing costs.
Either way, make sure your monthly rent or mortgage does not exceed 25%-30% of your disposable income – otherwise, you may experience serious financial difficulties. To determine the maximum amount you can afford to pay in rent/mortgage you can either divide your monthly income by three, or your annual income by forty. Be careful not to go over that number, however bright your future prospects may be.
2) Utilities
Needless to say, there will be various ongoing payments you’ll need to take care of in addition to the monthly rent or mortgage – such as the utility bills. Utility costs vary depending on the area where you live and the size of your home, of course, but you can expect to pay about $200 a month for gas, water, electricity, cable, internet, waste collection and removal, etc.
It is advisable to call the service providers in your future area before your move and ask them for an estimate of what your monthly bills are likely to be, so that you can get a better idea of your total monthly expenses.
Good to remember: Many utility companies require a deposit (about $100 per company) and/or a connection fee ($5 to $25) to turn on a service.
See also: How to transfer utilities when moving
3) Renter’s/Homeowner’s Insurance
It is strongly recommendable to get a renter’s/homeowner’s insurance when you move into a new home. It will cost you about $150 a year (the price varies by location, type of dwelling, and number of belongings), but this is a small price to pay for ensuring your peace of mind – proper insurance coverage will come very handy in the unfortunate event of a flood, fire, break-in, or another accident or natural disaster.
4) Furnishings
![Still not sure how much money to save before moving out of parents house?](https://www.mymovingreviews.com/move/wp-content/uploads/2016/11/housing-costs.jpg)
The fewer furniture pieces and household appliances you move, the lower your moving costs will be. (Click here to learn more about furniture moving.)
On the downside, you’ll have to spend more on furnishing your new home. After all, you can’t do without a bed, a wardrobe, rugs, curtains, tables, chairs, couches, lamps, and various other essential furniture pieces. The same goes for basic appliances – a fridge, a kitchen stove, a washing machine, a microwave, a coffee-maker, etc.
These things can be a huge cost (it is estimated that the average person spends about $1,000 to furnish a new place), so you need to be as thrifty as possible – at least in the beginning. Visit thrift stores and garage sales, ask friends and family if they have anything they can give you for free, look for discounts – just make sure you spend an amount you’re comfortable with.
Also, remember that you don’t need to buy everything at once – end tables, bookshelves, small appliances that are not used on a daily basis and other not-too-essential items can be purchased gradually.
Alternatively, you may want to consider renting a fully or partly furnished house or apartment – this will take a considerable financial burden off your shoulders during the first months after the relocation. It may be worthwhile, even if the rent is somewhat higher.
Other expenses will add up to your total housing expenses, as well – maintenance costs, property taxes, etc. Make sure you have the financial means to cover them all before you embark on your relocation adventure.
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