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Living on your own can be expensive, especially these days, thanks to inflation and a scarcity of housing. Add to that the fact that when we’re younger, we tend to have lower incomes, and it can be a major financial challenge to afford living on your own.

That said, it is certainly possible to afford moving out of your parents’ place. The key is to start planning and saving well in advance of your intended move. As a general rule, you want to have at least six months’ worth of living expenses saved up before setting off on your own. That may sound like a tall order, but these tips and strategies can help you get there.

How to Financially Prepare to Live on Your Own

One of the most important first steps in getting ready to move out is determining how much it’s going to cost. Once you come up with a ballpark figure, you can determine a realistic timeline, then start setting aside a portion of every paycheck into a savings account that pays a competitive rate (such as a high-yield savings account) earmarked for your move.

Upfront Costs and Regular Bills

Let’s say a friend clues you in on a great deal on an apartment rental and says to hurry and get an application in. Just a minute, please! Before you can move out, you need to make sure you can truly afford to do so.

Start your research by tallying up all upfront costs and regular bills you’ll need to pay such as rent, auto and renters insurance, utilities, cell phone service, health insurance, transportation, and groceries. After calculating all necessary expenses, see how much room is left in your budget for extras like dining out or traveling.

Also consider the one-time hits your finances will take when you head out on your own: There may be broker’s fees, moving expenses (more on that in a minute), and other charges, as well as the price of buying furniture and other items for your home.

By looking at your budget this way, you can get an idea of whether you can comfortably afford to move out or if you need to wait a little bit longer to make a move work financially. You want there to be some breathing room in your budget so you don’t wind up putting necessities on your credit card and racking up debt.

12 Steps to Afford Moving Out

Now that you have an overview of costs and expenses, it’s time to take the next step and drill down on understanding what you can afford, when you’re ready to move out, and how to navigate a move more easily.

These steps can help you get your own place without going broke.

1. Assess How Much Rent You Can Afford

As you plan this big step in adulting, you are likely most focused on how much rent you can pay. You’ll want to come up with a range of how much rent you can take on while still managing your other necessary bills, such as student loans, health insurance, and car payments.

It’s a good idea to tally up all your expenses and subtract that from your monthly after-tax income to see how much room is left in your budget and if the amount you can afford to pay is doable in your area. If you’re feeling as if you can’t quite come up with the necessary rent, you may want to consider how to move to another state or a nearby city that’s more affordable.

2. Consider Getting a Roommate

If it’s too hard to afford rent all on your own, you can think about having a roommate to help share the expenses with. Having a roommate can also make moving out for the first time feel less lonely.

3. Research Homes and Locations

Speaking of rent: Whether you plan to rent or buy when you move out, you’ll want to do some research on different housing opportunities in different areas. That way, you can see where you can get the most bang for your buck while still meeting your personal goals.

For instance, if you really value having a short commute, you might search for a studio instead of a one-bedroom apartment in the neighborhood you are targeting, if one-bedroom units are pricey. Or, if you’re hoping to rent a house, see what kind of prices you find in a neighborhood that’s adjacent to the one you are targeting or choose to go farther afield. You might find better deals due to more housing supply.

Recommended: Tax Breaks for Young People

4. Research the Cost of Movers

If you have a fair amount of things to move, it’s important to budget for the cost of movers. Yes, a friend with a van may be able to help with some smaller items, but things like a queen-size bed typically require movers.

Depending on how much you have to move and how far the move is (25 miles? 250?), your costs could be a few hundred or thousands. Ideally, you’ll want to get a couple of estimates from companies that come and actually eyeball how much you have.

Also, be sure to find out whether moving materials are included as you create your moving checklist. You may well be charged for boxes, wardrobes, tape, and moving blankets. In addition, it’s a good idea to inquire about “drive time” to and from your locations, which you may be billed for.

5. Don’t Make Any Excuses

It’s easy to think, “I can’t afford to move out” or “Rentals are hopelessly expensive” and give up (or at least procrastinate for a good long time). But if there’s a will, there’s usually a way. Finding your motivation and patience can be crucial to taking this step and getting your own place.

It’s common to get complacent when moving forward feels hard. If you do have to remain living with your parents or another family member while you save up to move out, keep your eye on the prize. Set up alerts for new home listings, put the word out that you are hunting for a home of your own, and keep saving and making career progress so you can attain your goal of moving out.

You might chat with friends or friends of friends to get their best advice on making your independent living dreams come true. They may have valuable hacks for you, too.

6. Have an Emergency Fund Saved Up

One way to lessen the financial stress of moving out is to have an emergency fund ready and waiting. That way, when you do move out on your own and hit an unexpected (and major) expense, you will have a financial cushion available to help you out.

How much should you have in an emergency fund? Experts advise having three to six months’ worth of basic living expenses stashed away (a high-yield savings account can work well). Figure out what that amount would be with the housing costs you expect to pay, and begin saving. Even $25 or $100 a month is a good start to get that layer of protection going.

7. Track Your Spending

When you are considering moving out for the first time, it’s wise to track your spending for a month or two. This will give you an idea of how much you tend to pay out each month, which can help you get a better idea of how much rent you can afford. For instance, how much do you typically spend on gas? On your WiFi provider? On eating out? As you look at these costs, you may be better prepared to know your budget once you are also paying housing costs.

Looking at your outflow of cash can also help you cut back on nonessential spending. For instance, you might realize you are spending over $100 a month on those iced coffees to go.

8. Budget for Home Needs

Figuring out how to move out with low income can be tricky. One hidden expense that is easy to forget about when budgeting for a move is home needs. Cleaning supplies, furniture, and appliances are expenses mom or dad may have taken care of in the past. Soon, they will be your responsibility. Consider how much that will cost and budget for it.

Also, if you are planning to buy a home instead of rent, budget for property taxes, home maintenance, and repairs.

9. Look for Cheaper Options on Furniture

When you are first starting out, you don’t need to splurge on expensive furniture. Thrift stores, garage sales, and inexpensive retailers can all get the job done. Freecycle and other similar sites (or Facebook and Nextdoor groups) can yield free or low-cost furnishings, too.

Over time, it’s likely to become easier to swap those inexpensive finds out for higher-quality pieces of furniture.

10. Manage Your Finances

To make moving out possible financially, it’s a good idea to keep a close eye on the money coming in and out each month. You’ll want to take some time to get all finances in order and to create a budget for this new chapter. Learning to manage money is a big step towards independence. It will have you that much more prepared for on-your-own living.

Your bank may well have an app that can help you track your incoming funds and your spending, which can help with this endeavor.

11. Set a Moving Timeline

Once it’s clear that a move is affordable, create a final timeline for finding a place to rent or buy and then moving in. Block out weekends for home hunting, and note how long before your move you want to get quotes from moving companies.

If you still need to save a bit more money, you can extend this timeline to include saving for a few months.

12. Be Realistic

It can take time to build the life you dream of, so don’t sweat it if your first home isn’t all that glamorous. Part of the fun of life is figuring things out and evolving over time. Many people have had first apartments that they still fondly look back on, despite how tiny, dark, or inconveniently located they may have been.

The best things in life often take time to fall into place, so be patient as you pursue your financial and lifestyle goals.

Prioritizing Financial Independence Over Savings

Many young people feel stuck at their parents’ because the finances of this situation make it possible to save on rent. They worry about moving out and not being able to save as much as they used to.

While there’s some truth to that point of view, understand that, yes, money is likely to be tight at first, but that is part of this rite of passage. Granted, you may not be able to save as you were before, but you can likely sock away a bit of money in savings (through your employer and/or into an emergency fund, perhaps) and begin to build your credit history, too.

It’s a big leap, but remember that your income will probably rise over time and help you save. Plus, living away from your parents can help you build your budgeting skills and financial savvy.

Banking With SoFi

Saving up for a major expense like a move? SoFi can help. When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards. Qualifying accounts can even access their paycheck up to two days early.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How much money should you have saved before moving out?

How much money you’ll need to move out varies from person to person. One rule of thumb is to save up at least six months’ worth of living expenses before moving out of a parent’s or family member’s home.

How do you move out when you can’t afford it?

It’s important for your financial health to not move out until you can afford to do so. To get to that point as quickly as possible, consider saving some of every paycheck and putting it in a savings account earmarked for your move. You might also want to look into sharing expenses with a roommate or perhaps taking on a temporary side hustle to earn extra income.

How do I know if I’m ready to move out?

You can get an idea of whether or not you’re ready to leave your parents’ place by calculating how much it will cost to live on your own. Sometimes, it’s just a matter of having a sufficient amount of income and savings. If you can afford to pay for rent and other necessities, plus have some fun (such as the occasional movie or dinner out), and you’ve built up some emergency savings, then you may be ready.

Photo credit: iStock/Hache

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