Moving out of your home to a new place is a big step to take. It involves a number of factors and chief among these is finances. For you to move out efficiently and thrive in your new apartment, you need to save approximately 3 months of expenses. However, this amount can expand due to extra costs such as the transportation expense as you move out.
As such, the total cost of moving can be overwhelming. Thankfully, substantial research on this topic has been performed. Hence, you can refer to it for estimations and general financial guidance concerning this activity.
How Much Money Do I Need to Move Out?
Here is a breakdown of the amount that you need to save before you move out.
How Much Money Do You Need To Move Out – Rent money savings
This is the primary amount of cash that most people save before moving. According to financial advisors, you should not pay a rent amount that exceeds 30% of your total income. While this is the most advisable ratio, people who live in large cities such as New York spend more than this percentage on their rent. Recent statistics indicate that the minimum rent in large metropolitan areas is $1,000.
Furthermore, analyses indicate that landlords today ask for the first and last month’s rents. They also ask for a security deposit that is equivalent in value to the current rent. Therefore, if you intent to move to a location in the city, ensure that you save up a minimum amount of $3,000 specifically for your rent.
How Much Does It Cost To Move Out
Moving companies ensure that your relocation process is smooth and issue-free. As such, the cost of hiring a moving company is another amount that you should consider when saving for your relocation. The moving cost depends on the size of the building which you are moving to. If you intend to move to a Studio apartment, the moving expense ranges from $420 to $700.
Moving to a 1 bedroom apartment costs between $700 and $1,100. Moving to a 2 bedroom apartment costs between $1,100 and $1,500. Last but definitely not least, moving to a 3 bedroom apartment involves charges of $1,500 and above.
Thus, there is a baseline moving charge of $500 for the first room and a consequent amount of $400 for every extra room towards the overall moving cost. Some unforeseen moving costs can include stair case charges, distance fees and packaging for your property as well. These are charges that you should consider as part of the moving cost.
Moving from one home to another has some additional expenses that you may not have foreseen. In most cases, there are some personal costs that are associated with the move. An example of such is food and drink. This usually results in expenses ranging between $100 and $150 per person. Other additional charges include utilities.
These include the phone, Internet, electricity, cable or gas. On average, this can reach an amount of about $175 per month. Loans that could be involved include vehicle, mortgage or student payments.
As such, these expenses can also be included in the additional cost of moving from one home to another. The lifestyle which you prefer is another important moving cost that you should consider. Your way of life ranges from economic to luxurious. Some people enjoy having a simple life while others prefer elegant amenities throughout.
Therefore, this average cost ranges from one individual to the other. The factors described above show that you need to make some substantial savings before you move from one home to the other.
In a recap, a move that involves transferring to a location in the city requires that you put aside $3,000 for rent money. Physical moving charges encompass paying the moving company, handling insurance and purchasing packaging.
These can run up to half your monthly rent and settle at $500. Therefore, the total savings that ensure a successful transfer are $3,500. Saving up some cash for food, transportation and utilities amounts to $400 per month. For a 3 month period, this rises up to $1,200. This results in total savings of $4,700.
To cater for your lifestyle, leisure activities and loan payments, an additional $300 is ideal. Therefore, if you are planning to move to a bustling city, you should save up to $5,000 so as to have a successful moving experience.