How Much Should I Save Before Moving Out?

Moving out is as expensive as it is stressful, that is when you don’t know what to expect. Today, countless resources make it easy to figure out how much time and money your move will cost. So, how much should I save before moving out?

Save 3 to 6 months’ worth of rent before moving out to cover moving and living expenses. This is typically enough to cover a security deposit, application fees, and the cost of hiring professional movers. Keep in mind that you must also budget for miscellaneous expenses, like utility activation, pet fees, and furnishing your home.

Supplement your income to ensure you make 3 times the cost of rent each month. That way, you can cover all of your expenses while setting money aside for your next move. Follow along as we highlight how much you should save before moving out to ensure a stress-free move.

How Much Money Should You Have Before You Move Out?

Ideally, you should save at least 3 months’ worth of living expenses before moving out. This includes money for bills, food, necessities, and rent. However, many people set aside up to 6 months’ worth of living expenses before moving out.

It’s also important that your income comes out to be 3 times the cost of your rent or mortgage payment. If your rent is $1,200 per month, you should ideally make $3,600 per month. This helps cover bills and living expenses while saving up to move into your next home.

What Costs to Consider When Moving Out

1. Application and Deposit

Application fees are unavoidable when moving out as a renter. Most property managers enforce application processes that come with fees. These fees typically cost $20 to $60 per person, but it varies between properties.

Keep in mind that you may also have to pay to apply to several apartments before getting accepted. Upon getting accepted, you must also pay a security deposit. Security deposits typically total the cost of one month of rent.

2. Rent

Not only do you owe your landlord a security deposit when you move, but you must also pay the first month of rent. For example, if your rental rate is $1,000 per month, you may owe $2,000 in your first month between rent and the deposit. These costs paired with whatever you owe your previous landlord add up quickly.  

Some landlords even charge for your first and last month of rent on top of the security deposit. Depending on how far you move, you may have to switch to a new job. In that case, it’s worth saving up several extra months’ worth of rent. That’s especially true if you don’t have a new job lined up before moving out.

3. Fees From Your Previous Home

Moving out doesn’t always mean that you’re done dealing with your previous landlord. For example, your previous landlord may charge you for repairs. However, landlords cannot typically charge for basic repairs, such as loose tiles and dirty pipes.

You may incur costs for property damage, such as damaged floors, walls, curtains, and appliances. Landlords typically expect tenants to take care of basic maintenance, such as replacing HVAC filters. You can avoid some of these fees if you thoroughly clean your apartment and replace your air filters before moving.

Landlords sometimes take the cost of repairs out of your security deposit. However, it’s not worth counting on your security deposit to cover these costs. After all, getting your security deposit back can provide a great foundation to cover moving costs.

4. Moving Expenses

The many expenses that come along with moving have a lot to do with why so many people dread the process. Aside from application fees, rent, and a security deposit, you must also budget for several expenses, such as:

• Hiring movers
• Moving truck rental
• Boxes and supplies
• Furniture
• Bedding
• Decorations
• Storage unit rental

Naturally, hiring movers or renting a moving truck is among the biggest moving expenses. Many people rent moving trucks to save money, but that can backfire. For example, U-Hauls carry many fees, such as mileage, late fees, and gasoline.

Conversely, full-service movers charge roughly $600 to $6,000 for local moves depending on the selected services and home size. It’s also worth budgeting for new furniture and decorations if you’re moving to a bigger home. Furnishing a small house alone costs roughly $5,000, but luckily, most people don’t have to start from scratch.

5. Utilities

Switching over your utilities is one of the biggest hassles when moving. For local moves, you can sometimes avoid large fees if you stick with the same suppliers. Otherwise, you may have to pay activation fees, which typically cost $25 to $100 or more.

Granted, that doesn’t include the cost of the utility bills themselves. These activation fees are on top of the bills you must pay to close out your time at your previous home. Set aside $25 to $100 per utility to cover activation fees to play it safe when moving.

6. Closing Costs

While this doesn’t apply to renters, homeowners must budget for closing costs when moving into new homes. Closing costs typically amount to 2% to 6% of the loan amount, but it depends on the lender and seller. This cost covers everything from the appraisal, underwriting fees, and taxes to surveys.

Luckily, this is a relatively minor cost compared to the cost of buying, furnishing, and moving into a home.

7. Miscellaneous Expenses

Moving comes along with many miscellaneous experiences that are easy to overlook. For example, you may need to pay an extra deposit if you have a pet. Some landlords charge a deposit fee per pet or simply add to the cost of rent.

It’s also worth knowing what is included in your lease agreement before you set a budget. Some lease agreements include free parking, saving hundreds of dollars per year. You can also save a small fortune if you move into a home or apartment with laundry in-unit or on the property.

Otherwise, you must either buy a washer and dryer or frequently visit a laundromat. Remember that all of these extra costs are simply in addition to your basic living expenses. Make sure you save enough to cover miscellaneous expenses as well as your existing bills, like a car payment.

Move Easily Without Uncertainty Through Optimum Moving

Moving without professional help involves lots of stressful guesswork. At Optimum Moving, we aim to remove guesswork from your upcoming move with transparent pricing and great communication. To get a quote about your upcoming move, Call Optimum Moving at (855) 315-6683.