6 Money Questions to Ask Before Moving Out
Is 2020 the year that you finally move out of your parent’s home? Whatever your reasons, make sure you are financially ready for it. Do not just move out without a plan! Ponder the questions below to ensure you are in a position to support yourself well.
1. Can you pay your bills?
The biggest question is: can you afford to live on your own? Write a monthly budget that covers all essentials, like utilities, food, transportation, and rent. Add extra expenses that actual moving out will incur, plus the amount you need to build an emergency fund for unanticipated expenses.
2. Are you in debt?
If you have debt, it may be a good idea to live with your parents temporarily so you can pay down your debt more quickly. Have a debt repayment plan and be prepared to make sacrifices to bust your debt as quickly as possible. Set a deadline for your debt completion and a target date for moving out.
3. Do you have an emergency fund?
Save up for unforeseen expenses before you move out. Start small, aim for $1,000 – $2,000, and work your savings up until you have six month’s worth of living expenses.
4. Can you pay the rent, plus deposits?
On top of moving costs, you must pay for your first and last month’s rent, as well as any deposit and rental application fees. Deposits or hook-up fees for utilities must also be considered.
5. Will you buy renter’s insurance?
Some landlords require renters to have this. Although this may seem like an unnecessary expense, it offers your protection and can save you a lot of money in the long run.
6. Are you taking a roommate?
This is a good way to save on rent. Just remember to choose your roommate carefully! If possible, sign separate leases with your landlord so you are not responsible if your roommate does not pay rent or other bills.