Rent is getting more and more expensive by the day.
In some cities, it might seem outright impossible to get a place on your own, espeically when you look at the most expensive cities for renters:
Plus, if you’re young and focusing on wealth building, it might be difficult to afford moving out, especially if you’re just getting started with your career or are still in school.
However, hope isn’t lost!
If you’re stuck living with parents or a living arrangement where you just want your own space, you need a gameplan.
In fact, if you can’t afford to move out, there are plenty of ideas to implement to help you get there faster!
These 6 steps will help you save up enough money to move out in no time.
Plus, there are a few bonus tips throughout the article that you’ll find incredibly useful before moving out.
Let’s get started!
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What To Do If You Can’t Afford To Move Out – The Steps
There’s no denying that, to move out, you need… money.
Now, if you’re thinking to yourself: “I need to move out of my parents house ASAP” or wondering how money you should save to move out, we’ll get to that.
But really, to save up money to move out, you can do 2 simple things – increase your income or reduce your expenses.
With that in mind, here are a few options for you to afford moving out:
1. Get On a Tight Budget
If you’re tired of living with your parents or roommates you don’t want to live with, the first thing you need to do is get on a budget.
Without a budget, you have no idea of where your monthly income goes, making it harder to save up enough money to live on your own.
Plus, a budget helps you factor in monthly rent into your total living expenses, making sure you don’t get into debt.
You also don’t need to go crazy with budgeting software if you don’t want to; a simple Excel file can get the job done:
Now, if you’re already living with parents, your cost of living should be extremely low unless they charge you some form of rent.
Other expenses like groceries should also be low depending on how your family splits up food costs.
With all that being said, you’re really just trying to limit your expenses when you go out with friends or grab a drink.
Track your expenses for the next few weeks and write them down. See which expenses are necessary and which ones can be limited.
Setting an actual number that you can’t go above will help you stay on track and ultimately save more in order to move out.
Extra Reading – How To Save $10,000 In One Year.
2. Increase Your Income (Jobs)
If you don’t currently have a job, now might be an excellent time to get one.
If you’re working part time, see if there are more hours available for you to work to increase your income.
Similarly, if you’re fully employed, don’t be afraid to ask for overtime, a raise, or to even consider getting a second job for a few months if you really need the money.
Whatever you can do to bring in a little more cash before your deadline, try your best to do it. It can only help your situation.
Additionally, finding any extra side gigs that may not take up too much time but can bring in a decent amount of cash can help as well.
There are plenty of ways to make money online too if leaving the house is an issue.
Just make sure the extra money you make goes towards a rent fund, not entertainment!
3. Pick Up Side Hustles
Another great idea if you can’t afford to move out is to pick up some side hustles.
Like working more hours at your job, side hustles are a great way to pad your income so fixed expenses like rent don’t sting quite as much.
Side hustles are also an excellent alternatives to a traditional job if you can’t work full-time because of your studies or some other commitment.
Some gig jobs you can consider include:
- Delivering food for DoorDash or Postmates.
- Trying out handyman apps like TaskRabbit.
- Delivering groceries for Instacart or Shipt.
- Trying out micro task websites for quick beermoney jobs.
You get the idea! 🙂
Just remember that your side hustle choice should match your skills and the timeline you set for moving out (more on this next).
For example, if you have a car, using apps that pay you to drive makes a lot of sense.
On the other hand, if you love writing and have a longer timeline to move out, things like blogging could be worth trying.
Extra Reading – The Road To A $100/Month Blog.
4. Set a Deadline for Moving Out
Setting a deadline is crucial for moving out of your parents house because it gives you a timeline to budget for.
Plus, it also gives you a goal to reach towards.
With this goal, you’ll feel more obligated to work harder at finding a new place, make more money, and save as much as you possibly can.
Now, you should be realistic with this deadline.
Give yourself at least a few months to get things together depending on how much you already have saved up.
Also keep in mind that the spring and summer months are popular times to find housing, so adjust accordingly to increase your options.
As long as you stick to your realistic deadline, you’ll be on the right track to moving out efficiently.
5. Set a Realistic Rent Budget
If you feel like you need to move out of your parents house as soon as possible, you might jump on the first rental that you think is decent.
However, doing this without setting a rent budget is a recipe for disaster.
So, before you plan to move out, take a look at your budget and figure out what you can actually afford.
There are tons of online rent calculators out there to help you set a realistic rent budget and figure out how payments are going to work.
Here’s an example of a calculation from calculator.net for someone making $50,000 per year with $500 in monthly debt payments:
In this example, $1,000 is the absolute maximium this person could afford before rent payments start to get a bit out of hand.
Of course, the city you’re living in has a lot to do with your expectations here as well, which is why many FIRE advocates suggest living in low cost of living, or LCOL, areas.
Anyway, if you’re struggling to create a rent budget, think about what you really want in a place.
Are you living on your own? How much space do you really need?
Ask yourself these questions and be honest with your answers. Lying will only result in trouble with late payments down the road.
Also, don’t forget to factor in utilities as well as any other miscellaneous expenses you may have in the first few weeks of moving in!
I highly recommend printing a “new apartment budget” template and fill it in to give yourself a realistic total cost.
6. Save Up and Move Out!
When you’ve got the right amount saved up to finally move out, do it!
Don’t hesitate or second guess the whole idea of leaving your parent’s house. It will hold you back to the point where you’ll never want to leave.
If you truly stick to your deadline and start searching for good places early, you’ll have no trouble moving out.
Your deadline may have to be slightly adjusted depending on how much you’ve actually saved up, but that doesn’t mean you shouldn’t create a new deadline and follow through.
Tips for Saving Up Enough To Move Out
Now that you understand how to move out of your parents house, here are a few insider tips to remember before moving out on your own…
But before we start, you should note that one or two of these tips may not apply to you depending on your living situation.
Consider Moving in with Roommates
If you can’t afford to move out on your own, moving in with roommates is the next best thing.
Not only can it be fun to live with friends or meet new people, but it also reduces the cost of living significantly!
At this point, anything that can reduce the cost of renting an apartment/house is preferred. That includes living with more roommates than you’d like.
Remember, your first place outside of home is likely not going to be your future home with beautiful renovations and no roommates.
This is your time to live a little sloppy and cheap in order to get things going with your career and eventually move to a much better place.
That’s why a basement apartment is an excellent idea.
They’re smaller, cheaper, and a little less private. I know I’d rather sacrifice a few extra square feet to save some money!
Extra Reading – 23 Ways To Save Money In College.
Don’t Go Crazy with Furnishing
Again, your first place isn’t supposed to be your dream home unless you’ve actually got the money to make it that way.
So don’t go crazy with furnishing! Not everything needs to be brand new.
Second hand stores, reuse stores, or even handed down furniture is all you need to get your new place furnished.
I also recommend checking Facebook groups in your area that are offering used furniture.
Typing in “Free & For Sale” on Facebook can find you hundreds of used furniture items… especially in college towns!
Apps such as Nextdoor also include a feature where people list their furniture (a lot of times for free).
Extra Reading – The Best Freebies For Students To Help Save Money.
It might be hard to settle for a place that’s not up to your standards at first.
And although you may find a great place at a decent price, you can’t be too picky when it’s your first time moving out.
If you can’t afford to move out right now, chances are you’re low on cash.
However, you could also be looking at places that simply aren’t in the right price range.
Adjust your search filters when you’re house hunting. Maybe there are great apartments for cheaper or a house with an extra bedroom that can ultimately cost less with a roommate.
Be flexible with your options and you’ll thank yourself later for it!
You Need Renter’s Insurance!
Depending on where you decide to rent, a lot of landlords require you to show proof of renter’s insurance before moving in.
Even if they don’t, renter’s insurance should be a no brainer regardless of your situation.
Renters insurance can protect you from things like:
- Personal property damage or theft.
- Personal liability, like if your toilet overfloods and destroys the apartment below you.
- Extra living expenses, like having to rent a hotel if your home becomes uninhabitable for some reason.
Renters insurance is so cheap, and you can get a quote in minutes by searching around online.
Plus, companies like Lemonade have renters insurance plans starting at $5 per month:
Don’t let this part slip over your head and definitely don’t forget to factor it into your costs.
You Still Need an Emergency Fund
When you save up enough money to move out, you should pat yourself on the back.
However, the savings shouldn’t stop there.
You still need an emergency fund.
In fact, you’ll need it now more than ever. With all these new expenses being added on to your life, you’ll absolutely want a backup.
Try and save somewhere between 3-6 months of your expenses into a savings account and never touch it unless it’s an emergency!
If you need to start a savings account that has a decent interest rate, you can checkout the CIT Savings Builder:
You only need $100 to fund an account, and the interest rate is way better than any basic savings account.
How Much Money Should I Save to Move Out?
The amount of money you should save to move out differs based on where you live, but this is a general rule for most movers…
You should save at least 3-6 months worth of rent. Additionally, rent should cost no more than 30% of your income.
Use this rule as a guideline to determine how much money you should actually save, but don’t follow it religiously.
Keep in mind, that amount should be on top of your emergency fund. Meaning, you might need to save somewhere closer to 6-9 months worth of expenses.
If you can’t afford to move out and don’t know where to start, hopefully this article helped you take off in the right direction.
I’ll admit, saving up enough money to move out without worry is hard. There are simply a lot of expenses and processes to deal with.
But if you follow the steps above, work hard to earn/save money, and just be honest with yourself about what you truly need, then moving out won’t be as daunting as it seems.
Plus, the joy of being independent is a feeling like no other and you’ll be happy you moved out sooner than later.
Now go move out!
Daniel is a 22 year old blogger from Los Angeles with a huge love for everything entrepreneurship, finance, and investing. When he’s not blogging at Modern Teen, you can catch him playing volleyball, shooting archery, or finding new ways to make money.