Even after a happy childhood in a good home, the day comes when you want your own place. The question is not just whether you want to move out. The real question is whether the numbers actually work.
Moving out: can you really afford it?
Before you sign a lease or start packing boxes, you need to do some honest budgeting. The list below is not exhaustive, but it covers the ground most people skip over when they are excited about getting their own place.
What does your current situation actually look like?
- What is your monthly income after taxes?
- Do you carry any existing debt with monthly payments, such as credit cards, student loans, or a car note?
- What are your other fixed monthly costs? Think gas or transit, health insurance, auto insurance, and your cell phone bill.
You may already be paying your parents something toward rent or household expenses. For this exercise, set that number aside. It will be replaced by a different set of costs once you are on your own. Right now you just want to see how much money is left over each month to put toward rent and the additional expenses that come with living independently.
What would your new situation look like on paper?
Once you move out, you are working with your monthly income minus your existing monthly costs and any debt payments. That remainder is what you have available for rent and everything else.
Rent is the biggest new line item for most people, but it is far from the only one. Utilities, groceries, renter’s insurance, and household supplies add up fast. You can find more detail for your calculation here.
Once you have subtracted
- taxes
- rent
- and other living expenses
from your income, what is left? If the number still looks workable, that is a good sign. But it does not yet answer whether you are truly ready to move out. We will get into that in the next post.
One cost you will want to factor in right now is the move itself. If you want to know what that part might run you, contact us to request a free quote.
