How Much Money Do You Need To Move Out

A place of your own may cost more than you think.

Moving out of your parents' house for the first time has been your goal for your entire life. Freedom, quiet and no one telling you what to do. It might seem simple — pack your stuff in a few boxes, hop in the car and party time. If you have a job that pays you a couple grand a month, a rent of $800 or so for your first apartment seems easy-peasy to afford.

Not so fast. Moving into your first apartment isn't as easy or cheap as you might think. There are a number of hidden expenses you might not have thought of. You'll have to budget properly so you don't find yourself out on the street, and consider how much money you're going to need to save before you move out of your folks' place.

Just because you have enough cash in your bank account to pay rent each month doesn't mean you have enough to move out. In order to be financially safe, experts suggest saving up four months' worth of expenses before taking the plunge. So how much will you need?

counting money

How much do you have now?

Before you do anything, you'll need to get an idea of how much you can afford. Grab your last six months of bank statements. (Don't have a bank account? You're not ready to move out.)

Itemize your expenses by category and see how much you're using every month at home for things like transportation and gas, going out to eat, entertainment like movies, bars and concerts, clothing, video games, vapes, coffee, your phone and streaming services. Now you have an idea of what you're currently spending.

Also take a look at your debts. If you're shelling out for student loan payments, car payments, credit card debt or paying your parents' back for raising you and won't be able to keep up regular payments and also pay your rent, you'll have to pay down your loans (or at least a chunk of them) before moving out.

The cost of moving

Then there's the cost of actually moving. Depending how much stuff you have, how much furniture you're bringing with you and how far away you're moving, your costs will vary. The average cost of moving for a studio apartment is about $420 to $700, a one-bedroom around $700 to $1,100 and between $1,100 and $1,500 for a two-bedroom. Save some cash by having friends help or borrowing a truck.

Regardless of your furniture situation, you have to budget paying for some. If you're moving your own furniture to your first apartment, you're going to need a bigger truck or professional movers to haul that bed, couch and dining room table.

Maybe you'll buy your own furniture, so budget for that and try to keep costs down by hitting thrift stores and Craigslist. Or, renting a partially furnished apartment may be the most efficient option even if you'll pay a bit more in rent.

Paying the rent and more

You should be spending no more than a third of your monthly take-home income on rent. That's your max. Now that you know how much you can spend, take a look at the average monthly rent in the city or area you wish to find a place. This will give you an idea of where you can afford to live and how much you'll expect to pay.

But rent is just part of what you'll pay to lease your first apartment. Before you even move in, before you even sign your lease, expect to pay a bunch of fees. Get ready to shell out for an application fee (up to $100), background check fee ($35 to $75), credit check fee ($30 to $50), security deposit (equal to or double one month's rent), first and possibly last months' rent (to assure you don't skip out on your lease), move-in fees and pet fees.

woman eating in bathtub

Basic necessities

But all those fees aren't the only things you'll need for your first month. Your apartment is empty, your cupboards are bare. You have to stock up on cleaning and cooking essentials.

Before you settle in, you'll need to hit Walmart or the dollar store and grab toilet paper, tissues, paper towels, garbage bags, laundry soap, dishwashing liquid, all-purpose cleaner, lightbulbs and any other necessities.

Don't expect to eat out or get Uber Eats every night. You'll have to cook your own food to keep expenses down. In the kitchen, the cabinets and fridge will need to be filled with basic necessities like flour, sugar, baking soda, vegetable oil, seasonings, ketchup, mustard, bread, peanut butter, honey, barbecue sauce, sponges, sandwich bags, aluminum foil and anything you personally need, not to mention pots and pans. That's a lot! Be prepared to pay upwards of $150 to $200 to fill your pantry and supply closet.

Utilities and recurring expenses

There's no grace period. As soon as you move in, you'll have to start to pay your monthly bills for recurring expenses. Utilities will consist of your electric bill to run your heat, air conditioning and appliances, your water bill and (in some apartments) a natural gas bill. Expect to pay between $125 and $175 a month in basic utilities.

There are additional monthly utility costs, as well, including Internet access and cable or satellite TV, not to mention your streaming services. If you're cutting the cord and can still stay on your parents' Netflix and Hulu, you'll save a ton, but you'll still need an internet connection from your cable company or another provider.

It's also possible you could be on the line to pay monthly for garbage pickup, recycling, sewer and even parking. And don't forget about your cell phone bill.

Do some Google research on the average costs of these services in the area to which you're planning to move, and calculate how they fit into your budget. Pay all your bills on time, and don't make the mistake of falling into debt and ruining your credit, and your future.

Hidden costs

Think that's it? Far from. There are plenty of other recurring costs to add in.

To pay for your first apartment, you'll need to have a job, and you'll have to get there. Live in the city and plan on taking public transportation? A New York MTA Metrocard, for example, is $120 a month and a 30-day pass for L.A.'s Metro is $100.

Going to drive to work? Be sure to factor in gas for your daily commute, and parking if you'll need to stash your car in a lot or garage at the office.

You're going to have to eat. Between groceries and dining out, figure somewhere between $100 and $200 a month, depending on how frugal you are. And you'll need to look dapper when you go out or head to work, so make sure to include a few dollars in quarters each week in laundry if you don't have an in-unit setup, and supplies and a higher water bill if you do.

You'll have to protect your stuff, too, or you'll be back under your parents' roof in a heartbeat, so renters insurance is a must and will cost about $10 to $12 a month.

No problem, you say, my paycheck will take care of all this. Well, you won't be taking home as much as you think, because you'll be shelling out for things like taxes, a 401(K) and healthcare every two weeks before your check is even deposited.

Do the math

Aside from all that, you should put away as much as you are able in case of emergency or job change. Always keep somewhere between $500 and $2,000 aside for unexpected health, car or other circumstances — and don't touch it.

Now that you know the true cost of leaving the nest, you can compare it to your paycheck and determine if you can afford to move out, how much rent you can manage and how much you must save. Remember, you'll need to be able to cover four months of these expenses to be comfortable. The worst thing you can do to yourself is miscalculating your real-world expenses and have to cut back to barebones or worse, move back in with your folks.