Everyone has their own set of expenses, what these expenses are varies wildly for the populace. The main costs everyone have include food/drink, transportation, and utilities. Most also have loans to pay off, and normal lifestyle costs. Before you move, there are some initial expenses you should save first.
- Moving Expenses: Do you need to hire professional movers? Are you relocating to a different city or state? Your initial moving expenses can vary greatly depending on your answers to these questions. According to Consumer Affairs, movers charge an average of $80 – $100 per hour for local moves (100 miles or less). For moves more than 100 miles away, the average flat rate is between $2,000 – $5,000.
- Deposits or Down Payments: When you apply to rent a home or apartment, you may have to pay an application fee. If you’re approved to rent, landlords often require you to put down your first month’s rent, last month’s rent, and a security deposit. You may need to supply deposits when you turn on utility services. (Tip: Good credit may save you money here.) Finally, if you’re buying a home, you likely need a down payment for your mortgage.
- Furniture or Appliances: Will you need to buy furniture or appliances for your new place? You can cut costs by purchasing inexpensive or used products. Yet you should still save in advance for these purchases instead of creating new credit card debt you’ll have to deal with later. Remember, it’s fine to start with the basics, like a comfortable bed and refrigerator, and add more over time.
- Emergency Fund: It’s wise to have an emergency fund in place before you move out on your own. You can start with a goal of $1,000 and build up from there. Eventually, you can build up to six months of expenses saved.