Is 20k enough to move out?

Moving out of your parent's house can be stressful. It requires money, know-how, as well as the proper attitude to know how to make it on your own. If you want to know if you’re ready to move out, and just how much money you think you’ll need, read on.

Are You Ready to Move Out?

One of the first things you need to ask yourself is if you’re ready to move out. There are a few questions that you will need to ask yourself before you move. They are:

• Do you have money coming in for rent?
• Will you have enough money to cover utilities, groceries, and any additional streaming services you may like, such as Netflix, Hulu, etc?
• Do you have money for furniture?
• Do you have a car payment?
• Do you have any other debt?

Do you have money coming in for rent? - One of the most important factors when moving out is having income coming in. If you have no money coming in, then having a mortgage or rent payment will never work out. So, making sure you have an income coming in is extremely important.

Will you have enough money to cover utilities, groceries, and any add-ons like Netflix, Hulu, etc.? - Another part of moving out that is often forgotten is the extras like utilities, groceries, internet, and anything else you want as well. Typically, your income should be three times the amount of rent. For example, if your rent payment is $1,000 you should be taking in about $3,000 a month. That will be enough to cover rent and any utilities you have.

Do you have money for furniture? - Furniture is something that you will need in your apartment or house. Even if you don’t "need" a couch or any furniture like that, there are some essential items you will need such as a bed frame, mattress, dresser (or chest for clothes), and some sort of seating for your living room or bedroom. Some of these items you might need to buy yourself, and that cost could add up.

Will you have a car payment? & Do you have any debt? - If you have a car payment, that is an extremely important thing to keep in mind when getting an apartment. Another thing to keep in mind are any debts you might have.

Note: Any payments you make, such as car payments or loan payments, will take away from your rent. As a good rule of thumb, you should be spending no more than 43% of your income on debt. This includes your rent payment as well.

Best Ways to Move Out

There are a few ways to ensure you are best set up for success when you move out. Those are:

• Make sure you have enough money for the first and last month's rent (many apartment and rental homes require this)
• Have a steady income! You cannot move out on a set amount and expect that money to last, so having a job ensures you have money coming in.
• Pay off any debts you might have while you’re living with your parents.
  • This allows you to have a nicer home, and those debts are gone
• Instead of buying new furniture, ask for hand-me-downs or buy used furniture.
  • Not only does this save you money, but it allows you to build up your own furniture collection on your own time
• If you have a car payment, make sure your income is enough to support rent, your car payment, as well as your insurance payment.

Is $20,000 Enough to Move Out?

In short, no. Having $20k saved up to move out is ideal, it gives you extra cash for deposits and whatever else you might need. However, you cannot intend to live on $20,000. To give you a different idea about how much that is, that averages about $9 an hour, which is hard to live on.