Moving out of a parents’ house is exciting and nerve-wracking. There’s the thrill of living alone without following restrictive house rules, but you’re faced with the responsibility of taking care of all the bills. If you’ve made up your mind about leaving the nest, here are insightful tips on How to Move Out of Your Parents’ House:
How to Move Out of Your Parents’ House
Talk to Your Parents
If you’ve been living with your parents for some time, it’s only fair that you inform them about your intentions. Whether they are excited or sad about your new adventure, communicate clearly and be sensitive to their needs.
Save Enough Cash Before Moving Out
If fending for yourself is still alien, it’s not yet time to find out how to move out of your parents’ house. Consider living with them a little longer. Living alone demands that you pay for groceries, rent, utilities, car insurance, to mention a few.
A good rule of the thumb is to save three to six months of living expenses. Don’t underestimate how much you spend. A look at your old bank statements should help you make a reasonable estimate of your living expenses.
For example, if your monthly budget is $2000, consider saving about $6000 after paying your apartment’s deposit. Add an extra 10% to cater to unexpected costs. Sometimes you end up spending more than the budgeted amount leading to credit card debt.
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Have a Move Out Plan
If you’re determined to know how to move out of your parents’ house, pick a date or month you plan to move. You don’t have to move on the set date, but it conditions your mind to work on a specific goal.
While at it, consider making a checklist of all the items you need. If you already have a few, good for you, but if starting a life on a clean slate, it would help if you bought necessities beforehand. You don’t want to spend a large part of your savings on buying necessities. Scheduling the move in the next six months allows you to save and buy most of the items on your checklist.
Where Do You Want to Move?
Identify a town, state, or city you want to move. Whether you just started a new job, are graduating, or moving across the country to pursue your dreams, have a detailed plan to make a smooth transition.
If planning to rent an apartment, study the rental markets in different states to identify one that matches your budget. Apartments in smaller cities like Ohio and Columbus have a lower monthly rent than those in New York, Beverly Hills, and other such high-end towns. Analyze the cost of living in the areas, too, as they vary by city.
Should I Rent or Buy a Home
If you’ve saved a significant amount of money and wondering how to move out of your parents house, consider buying a house instead of renting an apartment. Purchasing a home saves you a tad in monthly rental payments, but it adds a few most costs. Here are factors to consider:
- Do you know the costs of homeownership: If you haven’t saved enough, you may need to take out a mortgage
- Do you have a good credit score?
- Have you saved a substantial down payment?
- Are you free of debt?
- How long do you plan to live in the house?
- Do you have a consistent flow of income?
How Cost of Homeownership, Budget, and Credit Score Affect Your Decision to Move
When renting an apartment, you pay a fixed amount every month along with utility costs. The cost is pretty low compared to owning a home as you need to pay for:
- The monthly mortgage payments
- Property taxes
- Homeowners insurance
- Maintenance and repairs expenses
On average, insurance and property taxes alone add a whopping $2500-$5000 every year; the rates are higher in other states. If all such costs exceed your budget, renting an apartment may be a better option.
Your credit score also affects your ability to buy a house. If taking out a mortgage, your lender uses your credit history to determine the loan amount they can extend and interest rate. It’s advisable to show at least three types of trade lines with two years of payment history on each.
If you don’t have a rent payment history, two open credit cards and a car lease should suffice, assuming you’ve been making timely payments. If the balances are paid in full every month, you are more likely to secure a substantial loan amount at a friendly interest rate.
Things to Know When Moving Out
Many people get lost in the excitement and forget about nitty-gritty details. In this section, we look at things to know when moving out.
Build a Good Credit History
Given that most of the population moving out comprises young adults, they’re more likely to rent an apartment before buying a house. And the biggest hurdle is being able to afford their first apartment.
Beyond the cost of moving and furnishing the house, other financial factors play a significant role. To begin with, your credit score affects your ability to rent an apartment. Since you’re just moving out, it’s unlikely that you’ll have an established good credit history. If you have one, it should be high enough (650) to allow you to rent an apartment.
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Generally, the minimum credit score for renting an apartment is 650. If yours is lower, you can still rent a house, but you’d need to prove your ability to pay by showing your bank statements, pay stubs, and other such documents.
If you haven’t built a credit history yet, apply for a low-interest rate credit card to pay for regular expenses. If you can prove that you use the credit card often and make consistent monthly payments, your credit score improves.
And if your primary goal is to improve the credit score, avoid getting lured into offers and other sales features marketers use. Such perks are only valuable if you’re diligent at making monthly payments.
Budgeting is Critical to Keeping Financially Stable
A budget provides a detailed look at your financial situation. Start by determining your monthly income before tax, the maximum rent you can afford, and factor in additional costs like:
- Moving costs: It varies from $500-$600 based on the size of the household and distance moved
- Utility bills: Varies by state
- Household essentials: Including appliances, groceries, cleaning products, and more
- Application fees and security deposit
The rule of the thumb states that rent payment shouldn’t exceed 30% of your income. If you’re moving into a house, taking a larger chunk of your salary, look for a cheaper one.
Narrow Down Your Location
Knowing the city you want to move to is one thing, but choosing where to stay can be challenging. If working, consider commuting time to your workplace and proximity to social amenities like hospitals, malls, grocery stores, and parks. Other things to know when moving out to a particular neighborhood are:
- Public transportation
- The neighborhood’s demographics
- Lower Your Expectations When House Hunting
Having lived at home for years with all amenities set up, you can never be ready for the reality of renting an apartment. If you’re not prepared to adjust to the new life, you may end up renting an expensive house. For example, if you want an apartment equipped with a washer, dishwasher, and dryer, you may need to pay a few more hundred dollars.
Avoid Splurging on Home Goods After Moving In
It’s tempting to buy a bunch of stuff for your apartment. One of the things to know when moving out is that you hardly use most of them. Hold off buying the items until later and instead make a wish list on an online store to scratch that urge.
It is developing such a discipline that prevents you from racking up credit card debt and paying interest on stuff you don’t use. Visit thrift stores, dollar stores, and sites like Craigslist to find offers that could help buy some items at a discount.
Hire a Moving Company During Off-Peak Hours
Unless you’re moving a few household items, it’s important to enlist professional movers. Labor-only movers charge lower rates than full-service movers, particularly if you’ve scheduled the move during off-peak season. November, December, or January are the best months to move if you want to take advantage of low rates.
Set Rules and Boundaries if Moving in with Roommates
If living alone isn’t your cup of tea, or you are moving to an expensive neighborhood, invite some roommates. Be sure to set house rules from the onset to avoid contributing or doing more chores around the house. Discuss who’s responsible for specific expenses and house chores. If you do it later, you’ll probably engage in fights with people who aren’t mature enough to take care of themselves.
Apply for Food Stamps
Your friends won’t tell you that food is just as expensive as rent when telling you how to move out of your parents house. If you’re still struggling to get a stable income, consider applying for food stamps.
The social services office may assign a small amount every month depending on your income and circumstances. Keep in mind; this is just temporary assistance. If you don’t see it as such, you may never make enough money to live comfortably alone.
Moving out is one of the hallmarks of growing up. More importantly, it’s an opportunity to shape your future by creating your space. These tips on how to move out of your parents’ house should guide you throughout the process.