Moving out of your parent’s house is a big life milestone (one that comes with a newfound sense of freedom). But this newfound freedom comes at a price, aka a long list of expenses and plenty of new stressors.
Before you even begin the moving process or look at a place to live, you’ll need to consider your mental and financial readiness. Are you mentally prepared for this transition, can your income cover it all, and is your credit score in good standing?
Thinking about all of these things can make you feel overwhelmed and put you at a standstill. However, with some careful planning and tips for moving out, you’ll be on your way to creating your own life in no time!
Step #1: Assess Your Readiness
Assessing your readiness is the first step towards taking the helm. How do you feel about being financially responsible for everything? Are you both mentally and financially ready for this big jump?
According to a Bloomberg survey on young adults, approximately 45% of 18 to 29-year-olds in the United States are living with their parents or family members. Financial limitations are one of the primary motivators for living at home, so you’ll want to evaluate whether your yearly income will be able to keep up with your spending habits (when your parents aren’t fronting the grocery bill).
Fortunately, your parents can help you assess your readiness, figure out your budget, and plan the move-in day with you. After all, they’re good for more than just free dinners.
Step #2: Assess Your Income and Create a Financial Plan
A successful move starts with a well-planned financial blueprint, which you can easily create with some free templates.
Take a look at your personal finances and create a detailed budget that includes rent and all living expenses. This budget will help you understand your spending and figure out how to save money as you navigate through unanticipated financial waters.
Try to plan out your finances so you have enough money available for fun things too! It’s not a good feeling when you have to turn down plans with friends due to money constraints.
Some expenses to consider in your budget include the following:
- Rent and the down payment
- Utilities (electricity, natural gas, internet)
- Grocery shopping
- HOA fees
- Property taxes
Building an emergency fund is another important financial decision that you should think about before moving. Having a minimum of $500 in this fund at all times is usually a good idea in case of unforeseen circumstances.
Step #3: Build a Good Credit History
A vital financial aspect to be familiar with before the move is your credit score. This score essentially shows your financial reliability.
Landlords and lenders will typically always take a look at this score, as it helps them understand if you’re financially responsible. A good credit score (typically around 700) also opens doors to being accepted for loans, credit cards, and insurance.
Employers may even view your credit history to ensure your identity and prevent theft within the company. They cannot see your exact score, but the history report allows them to understand how responsible you are with money. This is especially important if your potential job involves handling bank accounts.
Establishing a credit history starts with timely payments of credit cards, student loans, and other debts. Continually staying up-to-date with payments can help increase your credit score, making you a more appealing renter to landlords.
Step #4: Save Money for Moving Costs and Living Expenses
Moving is emotionally taxing and is also a financial endeavor that requires careful budgeting for moving costs. From hiring a moving company to paying security deposits and purchasing new furniture, expenses can quickly add up. So, it’s time to start saving while you’re still at home and have fewer bills!
If you’re a little short on money, it’s a good idea to sell items you no longer need. Doing this will help declutter your space and add money to your moving fund. Try using websites like Poshmark, Craigslist, and Facebook Marketplace to get a headstart!
Some other things you can do include the following:
- Research and compare moving company quotes. Take a look at affordable companies like International Van Lines, North American Van Lines, and PODS.
- Consider moving during the off-peak season (fall to spring) to further save on costs.
- Look for discounts or deductions on moving supplies and moving companies.
Smart financial tactics and being proactive in your moving plan will make the process a little smoother and less stressful.
Step #5: Find a Place to Live
With an idea of your finances, the next step is to look for your new place. You’ll want your new living space to be a reflection of you, but you’ll also want it to be within your budget.
Some other vital aspects to consider include the following:
- The location’s proximity to your workplace or school: You’ll want to ensure you’re within walking distance of everything or at least near public transportation if you don’t have a car.
- Parking options if you do have a car or have company often.
- The provided amenities. Are you looking for a dishwasher or onsite laundry options?
- The number of bedrooms. Sometimes renting with roommates is wiser and more affordable.
- Whether the place is pet-friendly.
While the excitement of independence might steer you toward luxurious listings, remember to keep yourself grounded in reality. It’s a good idea to take a drive to check out the neighborhood, read reviews from current or previous tenants, and read all of the terms of the lease.
Step #6: Start Collecting Home Essentials
Once you have your new living arrangements lined up, you’ll need to consider how you’ll fill this new space.
A good place to begin is to start gathering the basics. Some things to add to your purchasing list include the following:
- Bedroom furniture like a bedframe, mattress, and dresser.
- Kitchenware like plates, cups, and utensils.
- A kitchen table and chairs to enjoy your meals.
- Couches and chairs for your living room area.
- Kitchen towels and bath towels.
- Any home decor items that you like.
While the upfront cost of decorating and furnishing your new place can be daunting, remember these investments are part of moving and help make a comfortable living space.
Step #7: Plan the Move
With all home essentials secured, you can now focus on the moving process, which requires careful timing and coordination.
Pick your move-out date and time, and stick to it! If you don’t pick a specific move-out date, things can feel very unorganized and add to the stress.
You’ll also want to determine whether you want to use a professional moving company or move everything yourself with the help of friends and family. This decision often relies on your budget and the weight of all of your belongings.
When packing, a good place to start is separating all of your belongings into essentials and non-essentials. Any non-essentials can stay at your parent’s house, or you can use Neighbor, a peer-to-peer self-storage marketplace, to keep your things safe.
If you need help, a moving checklist can ease some stress and give you a visual guide of your next steps.
Step #8: Set Up New Utilities and Services
You’ll need your utilities the day you move in, so it’s a good idea to schedule utility transfers prior to your move-in date to avoid any issues. Get the following utilities and services set up a few days before moving in:
- Electricity
- Water
- Internet
- Renters insurance (it’s not required, but recommended to protect your belongings)
- Car insurance and health insurance (if you aren’t already on your own plans)
Getting your utilities and services taken care of before moving will take some stress off your shoulders and allow you to focus on the moving process.
Step #9: Change Your Address
Something people often forget about while moving is changing their address, which is important for bills and deliveries. You can completely update your new address by doing the following:
- Changing your address with the post office
- Notifying the appropriate companies
- The Internal Revenue Service (IRS)
- The Department of Motor Vehicles (DMV) for your license and registration
- The Social Security Administration (SSA)
- Your bank and insurance providers
- Your phone and cable providers
- Updating your voter registration
You should also update your address on any subscription accounts you may have to prevent any payment issues.
Final Thoughts
When you decide to leave the family nest, one of the most daunting parts is physically moving and storing all of your belongings. This is especially true if you’re moving into a small apartment with limited space.
Luckily, you can use Neighbor, a cost-effective peer-to-peer marketplace. With the help of this marketplace, you’ll find self-storage spaces throughout all 50 states with prices that are 50% lower than traditional storage options.
Frequently Asked Questions
How Much Should I Save Before Moving Out?
As a general rule, it’s wise to have about six months’ worth of rent available in your bank account in case of emergencies. You should try to save a couple extra hundred dollars for moving expenses as well.
Is It Necessary to Have a Steady Job Before Moving Out?
A steady job with an income that covers rent and essentials is vital when moving out on your own. Without a steady income, you may fall behind on payments, leading to a possible eviction.
