• Home
  • GET THE BOOK
  • Start Here
  • Blog
  • Free Resources
  • Shop TBM
  • Courses

The Budget Mom

Real Women. Real Life. Real Finance

  • Home
  • Products
    • Live Rich Planner
    • Budget By Paycheck
  • Blog
  • FREE RESOURCES
  • COURSES
  • GET THE BOOK
  • Shop TBM

A life you love on a budget you can afford.

Here on TBM®, I provide you with simple, easy-to-follow solutions to help you budget your money, pay off debt, save more, and crush your financial goals. But more than that, I give you the tools to start doing the things that matter most to you, on a budget that actually works!

How to Budget When Moving Out for the First Time

May 12, 2022
Budget Tips

Share
Pin17
Share
Tweet
Email
17 Shares

As nerve wracking as this time can be, remember that moving away from home is also a time of opportunity and growth, even in your financial life!

It happens for all of us: at some point, it’s time to leave the nest. 

Whether you’re moving off to college or moving into an apartment to begin your career, moving away from home for the first time is a major milestone. 

This moment is filled with a mix of emotions. There’s excitement over getting to stretch your wings and experience independence while discovering who you are. On the flip side, there can be a lot of worry and nervousness. You may even find yourself asking, “Am I ready to move out? Do I have enough money? How do I create a budget? How much can I afford for an apartment, transportation, and food?”

In this article, we will cover all of those topics and much more.

By learning how to budget as you move out of your parents’ house, you’ll set yourself up for success and fulfillment. As nerve wracking as this time can be, remember that moving away from home is also a time of opportunity and growth!

So… let’s get started!

Moving Out for the First Time: Questions for Your Budget Checklist

Before you start planning your budget, there are a few things you should consider. The first thing you need to decide is whether you want to live in an apartment or rent a room somewhere else. If you choose to live in an apartment, then you’ll have to make sure that you have enough income to pay for your rent and bills. This means that you’ll need to save up either through part-time jobs or by using student loans.

Featured Post

How to Build an Emergency Fund (Step-By-Step Guide)

Read Post

If you plan on renting a room or living in a dorm, then your initial expenses will likely be less than living alone in an apartment, as you will have roommates to help share the financial burden.

These are some of the costs you should consider when looking for a place to live:

  • Do I have enough money for a security deposit or down payment? Most apartments require a security deposit, which can be up to one month's rent. In addition to paying for the security deposit, you’ll also need to spend money on a credit report check and other fees.
  • What can I expect to pay for utilities?  Utilities like electricity, gas, water, and internet can add up quickly if you don’t know what to expect. Make sure you research your utility rates before signing any lease agreement. These specific rates will vary depending on where you live. The average energy bill in NYC, for example, is over $300, but only $72 in a smaller market like Denver, CO. 
  • Do I have to pay for parking? Parking is usually included in most leases, but you may still have to pay for it. Some places charge around $20 per week, so be sure to factor this cost into your budget.
  • Is there a pet fee?  Many landlords won't allow pets because they can damage the building or cause health issues for next door tenants with allergies. However, if your landlord is willing to let you keep a pet, you need to ask if there is an associated pet fee involved. The last thing you want is to be surprised with an unexpected charge on your monthly rent.
  • How far am I from work or school? Yes, you should certainly factor in costs when choosing a place to live! But don't forget to take a look at the bigger picture. For example, the closer you are to downtown, the more expensive housing costs will be, but this doesn't always mean that you should look for the cheapest place to live. Cheaper places might have higher crime or may require you to pay more for transportation. In other words, don't just look at the dollar signs. Also consider your trade-offs, quality of life, and safety.

How to Save Money When Moving Out for the First Time

Just looking at your housing costs, it's clear that moving on your own will leave a temporary dent in your wallet. 

But you can control the size of that dent!

Not everything you need has to be brand new. Whether you're moving into an apartment or dorm, it doesn't mean that you need to buy everything to fill up your space. Instead, think of it as a move. 

Do you already have a bed at home? Do you have mirrors, artwork, bookshelves, and dressers that you can move into your new place? Do you have a TV or workout equipment that you use? If so, then bring these belongings with you!

Viewing this as a “move” instead of “starting a new life” can help you save so much more money.  

Here's a checklist of things you need when moving out for the first time – but before you buy anything, check to see if you have any of these items already.

Bathroom Checklist:

  • Towels
  • Hand soap
  • Shampoo, conditioner, body wash
  • Toiletries
  • Plunger and toilet scrubber
  • Bath mats
  • Shower curtain 
  • Anything you need for body care and self care

Bedroom Checklist:

  • Bed frame and mattress
  • Furniture
  • Mirrors
  • Artwork
  • Bookshelf
  • Dresser/closet
  • TV
  • Workout equipment

Kitchen Checklist:

  • Cookware
  • Kitchen utensils
  • Cutting board
  • Dishes
  • Glasses
  • Cutlery
  • Coffee maker
  • Microwave
  • Toaster
  • Refrigerator
  • Oven
  • Stove top

Living Room Checklist:

  • Lamps
  • Artwork
  • Bookshelf
  • Chairs
  • Coffee Table
  • Sofa

Home Office / Study Room Checklist:

  • Computer
  • Printer
  • Desk
  • Internet connection
  • Pencils, pens, markers
  • Paper

Oh, and don’t forget to check whether your place has a washer and dryer. Most rental units and dorms have a laundry room, but if this isn’t the case for your situation, most laundromats cost anywhere between $1.50 to $4.00 per load, depending on where you live.  

Keeping Track of Everything: How to Create a Budget

Phew!

This is a lot to consider and a lot to keep track of.

Instead of trying to track everything mentally, I encourage you to actually use a spreadsheet or some sort of budget sheet. 

While I trust your ability to do mental math, the reality is that finances and budgeting are more than just math. There’s an emotional and psychological component to it, too. 

Even the most fiscally responsible person can be tempted by impulse spending or overspending. By keeping track of everything in a tangible way, you can hold yourself accountable. This is the true secret to handling your finances when moving out for the first time!

The principles of money are truly easy. At the risk of over-simplifying it, it all boils down to money coming in vs. money going out. In other words, how much are you spending compared to how much you’re making?

Creating a budget is all about giving yourself an objective way to track all of these financial factors, so that you can make the best decisions for your future.

What Is An Emergency Fund?

When you lived at home, you had a security blanket: your parents. 

If your car broke down, for example, your parents would help you pay the costs for a repair. But when you live on your own, these costs belong to you.

Featured Post

What is a Zero-Based Budget?

Read Post

Creating an emergency fund gives you peace of mind knowing that you won’t have to worry about paying for basic necessities like food, rent, utilities, etc., because they’ll already be covered.

In fact, there are many different ways to set up an emergency fund. The key is to pick one that works for you. For most people, an emergency fund consists of three to six months worth of living expenses. This is money that you set aside and never touch with the exception of a true emergency.

Is there a birthday party that you forgot about?

That doesn’t quite count as an emergency, so you shouldn’t touch your emergency fund to be able to attend a last minute birthday dinner.

Did your laptop that you use for school or work suddenly break?

If so, that does count as an emergency because it is (1) unexpected and (2) an item that you truly need in your day to day life. 

To minimize the temptation to overspend while maximizing your savings, I recommend using CIT Bank’s Savings Builder, which offers one of the best savings interest rates in the whole country.

While most people moving away from home for the first time don’t have $25,000 to put into a savings account, CIT Bank allows you to enjoy the top interest rate with a savings deposit of $100 a month. 

This is an easy way to get your emergency savings fund started!

Do you have other questions?

Is there anything that we didn’t cover in this article?

If so, I encourage you to join our community on Facebook. In our group, you’ll find like minded people who are in a similar position or have experienced what you’re going through. We hope to see you there!

Share
Pin17
Share
Tweet
Email
17 Shares

Filed Under: Tagged With: BUDGET, MOVE, MOVING BUDGET, MOVING OUT BUDGET

Previous article:
« Sinking Funds vs. Cash Flow: What’s Right for Your Budget?
Next article:
How to Financially Prepare and Handle a Divorce »

Comments

  1. Reznik says

    May 13, 2022 at 11:06 am

    Hey can you make this into a YouTube video I’m about to move out for the first time in my life hopefully around august but I feel super lost and not sure where to start? I can’t afford to live alone considering the high costs of living in my area so I need to find a roommate but I haven’t found one yet and I feel stressed and overwhelmed about the whole situation. Since finding your videos I’ve felt a lot more ready to tackle this moment in my financial journey I just feel sorta nervous and lost about moving out. What if I can’t afford it once I’m out of my parents house? What if my roommates are dishonest or struggling to bring rent? I wish capitalism didn’t consider housing a commodity but alas it does so I gotta figure this out. I just like I said earlier have nobody I know who would be able to be roommates with me. I missed the bus. Since all my friends are already moved out. Makes me sad but I know I can do it too.

  2. Jessica says

    May 13, 2022 at 2:07 pm

    For any of the younger folks out there. Something I did with my parents when I was about 16 is I asked that they buy me items for when I move out. It worked out well, I received pot and pans, cooking utensils and accessories, dishes and cutlery, bathroom items, broom and mop etc. I loved it and for graduation my parents gave me my first and last months rent. I plan to do the same for my daughter as she gets older.

Hello, I'm Kumiko, but everyone just calls me Miko. Welcome to my blog, The Budget Mom. I am an Accredited Financial Counselor® , and mom to a rambunctious boy. Come along with me as I strive to live a life I love on a budget that I can afford. Read more about me.

RECENT YOUTUBE VIDEO

The Budget Mom

The Budget Mom
It’s time for another Real Life Budget. I asked my readers to submit their REAL information. Real spending, real debt, and real savings goals.

I am taking those real-life numbers and showing you how I would organize and budget that information using my Budget By Paycheck® Method.

If you would like to submit your budget information to possibly be picked for a Real Life Budget that we will show on YouTube, please reach out to budgets@thebudgetmom.com.

Diane is a single mom who is a Database Administrator for an IT Department at a local college. She lives in Queens, NY, and eventually wants to move to a lower-cost of living area in the future. 

Diane submitted her information because she is struggling to organize and tackle all of her larger short-term goals.

CHAPTERS:
00:00 Introduction
02:15 Why & Personal Story
04:20 Income 
04:37 Fixed Expenses
05:48 Variable Expenses
06:31 Debt
07:53 Savings Goals
10:18 Budget By Paycheck Method
14:51 My Recommendations

➡️ HOW I TRACK MY SPENDING: https://bit.ly/3aIe89I
➡️ HOW TO USE A BUDGET CALENDAR: https://bit.ly/2IzF2Vj
➡️ FINDING YOUR WHY: https://bit.ly/3aJUryj
➡️ THE BUDGET MOM'S FINANCIAL FREEDOM STEPS: https://bit.ly/3cfJXsp
➡️ HOW TO GET STARTED WITH THE CASH ENVELOPE METHOD: https://bit.ly/2vQJaO5
➡️ HOW TO CREATE A PLAN OF ATTACK TO PAY OFF DEBT: https://bit.ly/2wDETxF

ABOUT ME

Kumiko Love is a single mom who empowers women everywhere to regain control of their financial lives. An Accredited Financial Counselor with over nine years of experience in the finance industry, she founded The Budget Mom, a community of millions of women on a path to financial fulfillment.

She's also the creator of the wildly popular Live Rich Planner® and Budget by Paycheck® Workbook. Love has been featured on Good Morning America, the Today show, CNN, CBS, ABC and in USA Today, US News, World Report, Huffington Post, Money Magazine, Parents Magazine, the Washington Post, and Real Simple. She lives in Spokane Valley, Washington.

YOU CAN FIND ME AT:

📝 WEBSITE: https://www.thebudgetmom.com
📘 FACEBOOK: https://www.facebook.com/thebudgetmom/
📸 INSTAGRAM: https://www.instagram.com/thebudgetmom/
📌 PINTEREST: https://www.pinterest.com/thebudgetmom/

GET STARTED

➡️Start Here: https://www.thebudgetmom.com/start-here/
➡️Courses: https://courses.thebudgetmom.com/
➡️Free Resources: https://bit.ly/2PDmTHz
➡️GET 10% OFF my popular Budget-by-Paycheck Workbook - Coupon Code TBMYOUTUBE https://bit.ly/3FEdZFp

Soundstripe License Code: LBWMAQPEPWYVFKT3
Load More... Subscribe
Free Resource Library

Recent Posts

  • The Secret to Personal Finance I Never Learned About in Business School
  • Don’t Overpay for TV and Internet: How to Shop Around for the Best Deals
  • 4 Simple Tricks to Stick to Your Grocery Budget
  • Celebrate Without Breaking the Bank: How to Save for Special Events
  • 9 Things People in Their 50s Can Do to Prepare for Retirement

Blog Categories

Amazon Associates Disclosure

The Budget Mom, LLC is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.

  • Cart
  • Shop Policies

Start With My Friday Newsletter

Every Friday I send you a short helpful email with my popular Friday freebie. Join my 500k+ subscribers!

About

  • Home
  • ABOUT TBM
  • Contact
  • Start Here

Important

  • DISCLAIMER
  • PRIVACY POLICY
  • Subscribe

Favorites

  • YouTube
  • Blog
  • Live Rich Planner
  • Budget by Paycheck

Start With My Friday Newsletter

Copyright ©2023, The Budget Mom®
This website contains affiliate links, which means that if you click on a product link, I may receive a commission. This website is a participant in the amazon services llc associates program, an affiliate advertising program where I earn advertising fees by linking to amazon.com.
  • How financially fulfilled are you? Take this 2 minute quiz to get your score!
    Click Here to Start