Budgeting Tips for Young Adults Who Want to Move Out
Moving away from home is a milestone many young adults look forward to. Before you pack your car and say your good-byes there is a lot of serious work that needs your attention. The most important step in preparing to move out is learning how to budget.
Take a Hard Look at Your Income
Learning how to budget for your new freedom begins with looking at your income.
- Consider your streams of income. Will they continue when you move?
- What type of job do you plan on having when you move? If you are able to secure a job in your new location, the transition is easier on you and your budget.
- Do your parents give you extra money while you are at home? Are they planning to continue that when you move?
Moving has its Own Set of Expenses
As you plan out your budget for your new home, consider the costs of the move itself.
- The rental truck. If you are renting a truck look at the size and company you choose to determine the best available option.
- Do you need moving help? Will your friends work for a pizza party or do you need the professionals?
- Will you need to stop anywhere on the way to your destination? Budget for gas and possible hotel costs to ensure you arrive safely.
- The final piece of this budget is your move-in costs. Many locations ask for an application fee as well as the last month's rent along with the current rent. Do you have that set aside? Will you need to pay for utility hookup?
Learn How Far Your Money Goes Every Month
Once you arrive in your destination there is another budget to consider. Your monthly budget is like a schedule for your money.
- How much is your rent? Unless you are moving in with a friend you are going to pay rent in your new location. How much is it and what does it include?
- What other monthly bills do you have? For instance, do you subscribe to a streaming service or online shopping site? If money is tight, consider reducing your subscriptions to stretch your budget.
- Your parents are not going to move in and cook for you. Are you planning on cooking at home once you move? Eating in helps save money and lets you explore new tastes at a lower cost.
- What about your transportation options? The final piece of the pie keeps you on the road. Are you bringing your car to your new destination? Research gas prices around your new neighborhood.
When looking at your budget focus on required bills such as rent and car payments. Use the rest as your free money for celebrations and relaxing.
Contact us today so we can help you set the perfect moving budget. We look forward to helping you achieve this life milestone.