WhenShould You Move out of Your Parents’ Home?
AmandaPetersen
There’sa transition most young adults must face at some point in their lives: movingout of their parents’ home. And while you may end up back there for a stretch –if you fall on hard times or for another reason– it’s stillgenerally not a great long-term arrangement.
Youmay be wondering if you’ve reached the point where you should consider findingyour own apartment. And if that’s on your mind, it’s good to start planning forthe future – today.
Ifit’s your first time considering moving out on your own, you likely have someworries. After all, it’s a huge change and one of the first major transitionsof your life. We’ll discuss the details surrounding the decision to move outand everything you need to examine to be successful in your new independentlife.
Signs That It’s Time to Move out
Thethought of being on your own might be exciting, but it’s a decision that shouldbe weighed and planned before executing. It’s crucial to understand yourfinances, budget properly, make plans for new expenses and recognize how movingout might impact other long-term financial goals.
Ifyou’re uncertain about taking the leap into full-fledged adult independence,there are signs to look for that might indicate the time to leave home hasarrived:
Havingtoo long of a commute
Notgetting along with your parents
Needingto boost your social life
Cravingthe independence of adult life
Outgrowinga curfew
Beingable to afford the cost of living
Wantingless restrictions
Havingyounger siblings who already moved out
There’sa long list of potential signs it might be the right time to move into your ownplace, but these are just a few to consider when thinking about a new livingsituation.
What Age Should You Move out?
There’sno right or wrong age to consider moving out. The answer depends on yourability to afford the costs of living on your own.
Asof July 2020, 52% of young adults ages 18 – 29 lived with their parents, thehighest number since the Great Depression era.
Factorslike the COVID-19 pandemic, rising student debt and cost of living are just afew reasons why it may be harder to leave home than in past decades.
Nomatter your age, consider your financial situation and long-term goals beforedeciding on when to move out.
How Much Money Should You SaveBefore Moving out?
It’ssmart to save as much money as possible before moving out. As a rule of thumb,having between 3 – 6 months’ worth of living expenses is a good goal.
Whenpreparing to move into a new apartment, you’ll need to thoroughly understandthe costs associated with the process. Some of these costs may include:
Creditand background checks
Payingrent for the first month upfront
Securitydeposit
Furnitureand appliances
Movingexpenses
Rentersinsurance
Theseexpenses will likely require thousands of dollars upfront. So make sure you’reprepared with the right amount in your savings account.
Anotherimportant financial point to consider is proving your creditworthiness to yourfuture landlord.
They’llreview your credit score, work history and likely request a background check.If your score isn’t ideal, it’s time to work on improving your credit scorebefore looking for a new place.
You’llalso need to provide proof of employment with documents, such as W2s or paystubs, to confirm you have stable employment.
What is your income?
Theaverage monthly expenses for one person in the United States is $3,189,totaling $38,266 annually. This number can vary greatly depending what area youlive in. For example, living in New York City will be significantly moreexpensive than living in Little Rock, Arkansas.
Yournet income (income after taxes) should be enough to cover your cost of livingat a minimum – making a little extra as a safety net would be even better.Living within your means is a valuable skill to learn and practice. Yourfinancial situation depends on your ability to properly manage moneyindependently.
What are your current expenses?
Getan idea of what your expendable income looks like after deducting all yourmonthly expenses – like car and insurance payments, student loans and creditcard debt. You’ll feel much more comfortable with a little wiggle room at theend of each month rather than barely scraping by.
Whilea healthy amount of emergency savings is always beneficial, having a sufficientand consistent monthly income is vital to financial stability after you’re outon your own.
How Should You Get Ready to Move out?
Whenyou’re ready to move out of the family home, there’s some initial preparationyou’ll want to do. Creating a detailed game plan can help mitigate stress andresult in a smoother move-in day.
Anddon’t forget that moving out is a process. Including a plan to care for yourmental health is a great way to help make the change easier. Consider the aftereffects you might feel once you’re moved-in and living on your own.
Build a move-out timeline
Fromthe first time you start browsing rentals or apartments to move-out day, theprocess takes a significant amount of time. Procrastination at any step canmake an already nerve-wracking situation even more difficult.
Buildout a long-term plan that prepares you for everything from the apartment searchto setting up utilities and moving into your new place.
Thistimeline includes important steps like:
Savingup money
Optimizingyour credit score
Findinga roommate
Searchingfor an apartment
Build a career plan
Ifyour current income barely covers your cost of living, develop a long-termcareer plan to meet your needs.
Considerasking yourself these questions:
Doyou expect any promotions or openings at your current employer?
Howcan you increase your monthly income?
Arethere opportunities in the job market for you to increase your pay?
Ifyou move while the job market is hot, you have a chance to find moreopportunities for career changes and advancements that can lead to a higherincome.
Finding a roommate
Whilesome may scoff at the idea of having a roommate, you can significantly reduceyour expenses by splitting them with another person (or multiple). Dividingmonthly rent and utilities can easily save you hundreds, if not thousands, eachyear.
Thereare plenty of ways to go about finding a roommate.
First,check with your friends to see if they or anyone they know is looking for aroomie. If you don’t have any luck with that strategy, check out onlineplatforms like Craigslist or other websites where roommates can connect.
Makesure you do your due diligence. Ensure a potential roommate is trustworthy andrespectful before you decide to live together. You may feel more comfortable ifthey have references you can call for confirmation.
How Do You Budget for a Move?
Movingout can come at a high price.
You’llneed to prepare for all the expenses that come with moving. This includesgetting days off work, paying the security deposit and first month’s rent,along with the costs to pay movers and get packing supplies – think boxes,tape, cushioning for breakables, etc.
Addall these up so you have a concrete number to target with your savings goals.
How Do You Budget After a Move?
Thereare many things you’ll need to include in your budget that you didn’t have tothink about at your parents’ house. These ongoing monthly costs can add up quickly.Use this cost of living calculator to determine your monthly expenses.
Hereare a few costs you’ll need to add to the budget once you’re on your own:
Electricity
Gas
Internet
Groceries
Water
Entertainment
Carinsurance
Theseare some examples of bills you’ll need to pay each month, but it isn’t anexhaustive list. Be sure to plan for surprises, like your car breaking down oran emergency visit to the doctor.
Buildingan emergency fund for unexpected expenses will help keep you from taking outcredit cards or loans to cover the inevitable.
Will Moving out Mean Moving up?
Movingout is certainly exciting and appealing, but it’s important to understand thefinancial implications and responsibilities of such a significant lifestylechange.
Considerthe impact moving into your own place can have on your long-term goals andensure your income and savings can support your living expenses. If it’s notthe right time, don’t worry – re-evaluate your situation in a few months.
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