For anyone who has been planning to move out of their present living situation, money is an utmost factor in your capability to do so. Today, we take a look at some of the fund allocations you must have. Moving out is often the goal for many. It could be a young adult looking for their first taste of freedom or even a young professional aiming to stop living with roommates.
It is something that we will face at one point or another. If you are at such a cusp in your life, it is important to be aware of how much it will cost you. Moving out can be quite expensive. However, with proper planning and budgeting, it is wholly feasible. We’ve rounded up some of the must have fund allocations that anyone planning to move out should have.
Rent Advance and Security Deposit
Anyone who is planning to rent should already have a general idea how much they can allot towards their rent. Rent should not take half of your monthly earnings because you still have to make room for utilities, food, and so many other things. So when you determine what would be a realistic sum for your rent—it helps when you scout around the area you want to move to—and start setting aside 2 months worth of rent advance and ready yourself for the security deposit.
Your emergency fund should be worth 6 months of your salary. This should be built before you move out. It is going to be your safety net in case of any emergencies, like job loss or unexpected purchases.
Not every apartment out there comes with furnishings. When you move out, you’ll come face to face with the reality that your little kingdom does not come equipped with every comfort that you might have grown up with like a fridge, a stove, a bed, or a microwave. You should canvass early on how much these can cost you and save up for it.
Moving out is a pretty big decision. It requires drive, discipline, and a clear goal in terms of finances. After all, it would make very little sense to move out and end up having to move back in within a few months because of “unforeseen” expenses. So yes, there needs to be quite the saving up before you are able to comfortably and realistically move out.
In our experience in our own moving out stories, it is a wholly riveting and fulfilling moment in anyone’s life. So it is important to make sure that you do it right. What fund in particular do you think is completely critical to the moving out budget?