Moving out and starting a new chapter in another home is a dream come true for many. But before you embark on this adventure, you need to consider your finances. More specifically, you should make sure your income can support your relocation.
A general rule of thumb says you want to keep your housing expenses under 30% of your income. The upper limit is 43%. Anything higher than that, and you risk incurring crippling debt.
But not everything is so financially bleak when moving. On the contrary, there are many ways to ensure the relocation doesn’t dent your budget.
Get a Roommate
Living solo has its perks, such as unlimited freedom and the lack of need to adapt to others’ needs. However, this lifestyle also has many downsides, one of which is higher housing costs. All the burden rests on your shoulders, and this can be hard to cope with if you don’t have a remunerative job.
Therefore, consider getting a roommate. Whether you bunk with a cousin or partner, living with someone else allows you to share living expenses.
Save Some Money Beforehand
The last thing you want is to dive into your relocation with an empty wallet. Try to save at least three months’ worth of your expected expenses before moving out. It’ll be a solid safety net for any unforeseen costs down the line.
Find a Place Near Your Office
Living near your workplace reduces the time spent commuting. More importantly, the money saved on fuel or bus fares leaves more cash for utilities.
Try to Get a Better Deal
Whether you’re buying or renting a place, you should always try to negotiate a better deal. Look for any weaknesses that can help you lower the price, such as HVAC problems, peeling paint, and squeaky floors.
Key Takeaways:
- Spend no more than 43% of your income of housing costs and debt payments combined.
- Moving costs, utilities, and internet charges will add hundreds each month.
- Getting a roommate can save money, as can learning basic lifestyle skills such as shopping and cooking.
“For most people, moving out on their own requires careful saving and planning over time.”
Read more:
https://www.moving.com/tips/how-much-money-you-need-to-move-out/