How Much Money Should I Save Before Moving Out?

It’s finally time! You’ve reached a point where you’re ready to move out of that childhood bedroom, away from your loving parents, and into your own place. But how much money should you have saved up to make the move feasible? There are a few things to consider before deciding how much cash you’ll want stashed away in your bank account. Here’s our guide to figuring it all out.

Take a Look at Your Bank Statements

Before you even start thinking of how much you’ll need in order to move into your own place, start by taking an in-depth look at your bank statements. Most banks offer paperless, online statements that you can pore over whenever you want. Go back through the last few months and take notes on what you spent for groceries, going out, transportation (public transit, Lyfts or Ubers, gas for your own car), entertainment, and shopping.

It might be hard to look at your spending habits on such a granular level, but you’ll get a better understanding of where your money goes and how you can cut back to start saving. It will also tell you how much you need to live off of each month and how many months’ money you should save up before you move out.

Research Your City

If you’re moving to your own place in the same general area as your parents’ home, this won’t be too hard since you’ll already know about the cost of living in the area. Moving to a completely new city (or state) will require more research, though. Take the time to look at the price of utilities, public transportation, and food that will all contribute to your cost of living. With an idea of how much you’ll be spending on each, you can start to get a feel for what your total monthly expenses will be.

Looking at the average rental prices in a city is highly encouraged, as they can vary pretty drastically across the U.S. Check out our monthly National Rent Report to see updated prices for one and two-bedroom apartments across the country. You should add your monthly rent to your other expenses and use this figure to determine how much you’ll need saved up before moving out of the parents’ house.

Estimate Your Budget

After you’ve taken a close look at your bank statements, researched your new city, and factored in your living expenses, it’s time to estimate a monthly budget. Be reasonable when you’re looking at your food and going out expenses; the worst thing you can do is underestimate how much you actually spend on the two and then have to severely cut back once you’re in your new place. Determine how much rent you can afford, add it to your expenses, and get a monthly budget set in stone. You’ll want to save enough (at least) for a security deposit, rent, and a few months of living expenses. A back-up savings fund is also recommended.

Now, you’re ready to start saving money. There are plenty of tricks that will save you money, but being aware of your spending habits and knowing where you can cut back is your best bet.

Use Money-Managing Apps and Start Saving

Once you know your budget goals, you can start using apps to track how much you’re spending and saving. Do you spend most of your monthly budget on shopping or going out with friends? Is transportation costing you more than you think? Or, did you spend less and save more this month compared to last month?

Use apps like Mint to help manage your budget. Connect your personal Mint account to your bank accounts and the app will track your purchases and organize them by category. In other words, Mint can tell you how much you’ve spent on restaurants or bars each month and how it compares to your “going out” expenses in previous months. Seeing it all laid out might not be pretty, but it’ll make your estimates more accurate when it comes time to save.

It might take a little research and preparation, but knowing exactly how much money you should have saved up before moving out of the parents’ house will benefit you in the long run. It’s important to have enough money not just for your rent and utilities, but for food, transportation, and the fun stuff. Save up as much as you think your budget requires, and you’ll be in good shape once you move out and into your new apartment.