Cost of moving out: a budget for living on your own
Moving out costs you twice: the day you move, and every month after.
In short
Moving out takes two numbers. The first is what you pay once: security deposit, first month's rent, basic furniture and the move itself, usually three to four months of rent. The second is your monthly cost: rent, utilities, groceries, transportation, internet and insurance. The rule of thumb is to keep rent under 30% of your gross income; on 4,000 dollars a month, that is rent of up to 1,200.
Rent is the number everyone looks at, but it is not the only one. People who move without counting the rest often move back within months, or live on a credit card.
What you pay once
1 month's rent
Security deposit
Returned when you leave, if all is in order
1 month's rent
First month, sometimes the last too
Due at signing
1 to 2 months' rent
Basic furniture and kitchen
Bed, table, pots, a few chairs
Varies
Moving and setup
Truck, utility deposits, internet installation
Some landlords also want an application fee and proof of income of about three times the rent. Ask before you fall for a place.
What you pay every month
- Rent.
- Electricity, water, gas, trash.
- Internet and phone.
- Groceries and meals.
- Transportation.
- Renters insurance, household supplies, the unexpected.
Before you sign, build a full month's budget with these lines. If it does not work on paper, it will not work in real life: monthly budget.
How much you should earn
The 30% rule: rent should take no more than about 30% of your gross monthly income. Above that, the rest of the budget gets so tight that any surprise turns into debt.
1,050 dollars
Maximum rent
On 3,500 a month
1,200 dollars
Maximum rent
On 4,000 a month
If the places you find are above that, the options are a roommate, a little farther out, or a few more months of saving.
Before you go
- Save the cost of moving plus one month of expenses in reserve.
- Live one month as if you already paid rent: set that amount aside and see if the rest still works.
- List furniture by need. You do not need everything on day one.
How it looks in the app
In Caudal you set up rent, utilities and internet as recurring payments with their due dates. The app tells you what they add up to each month and asks whether they went out, so from the first day you know what is left after the fixed costs.
Common questions
- How much money do I need to move out?
- To move, about three to four months of rent: deposit, first month, basic furniture and the move. On top of that, keep one month of expenses in reserve for the first surprises.
- How much should I make to live on my own?
- Enough that rent stays under about 30% of your gross income and leaves room for utilities, food, transportation and savings. On 4,000 dollars a month, that means rent of up to 1,200.
- What costs do people forget when moving out?
- The one-time ones, like the deposit, furniture and utility setup, and the small monthly ones: renters insurance, cleaning supplies, repairs. That is why it pays to budget a whole month before signing.
Try it on your own money
Caudal is an expense tracker in Spanish, English and Russian. Several currencies, goals, debts, a shared household budget. Recording an expense takes three seconds.
Start free