Moving away from home is a significant step that requires careful financial planning. With more people living with their parents longer than past generations, it’s important to know how much money you’ll need to move out comfortably. A 2023 report from Environics Analytics found that 2,535,109 Canadians aged 25 and above live with their parents, and another Statistics Canada report revealed that 35.1 percent of young Canadian adults (aged 18-34) live with one of their parents.
At Orbit International Moving Logistics Ltd., we understand that figuring out how much money you need to move out and live independently can seem complicated, but it doesn’t have to be. Whether you’re a young adult renting while attending post-secondary education, a first-time tenant, or someone purchasing their first property, we have essential tips to help you budget for the move and manage your personal finances effectively.
Building a Budget that Works for You
It’s often suggested that you should be saving money before moving out, typically between $5,000 and $15,000. Others recommend having enough money saved to cover three months of monthly expenses. Everyone’s personal finance situation is different, so to determine how much you’ll need to save before moving, create a monthly budget that accurately estimates both initial and recurring costs.
Initial expenses can include:
- Application fees
- Security deposits (sometimes in addition to first and last month’s rent, which could also include a pet deposit or damage deposit)
- Furniture and appliances
- Moving expenses (moving costs include hiring a moving company, purchasing packing supplies, and more)
- Down payment (if you’re purchasing a home)
Recurring expenses can include:
- Monthly rent (or mortgage payments)
- Utility payments (i.e., water, gas, electricity, phone, Internet)
- Groceries
- Transportation
- Insurance
- Entertainment
- Subscriptions/memberships (including gyms and professional associations)
- Clothes
- Regular contributions to an emergency fund and long-term savings account
- Education and books (if applicable)
- Debts (such as car loans, student loans, or credit card balances)
- Home upkeep and repair (for homeowners)
- Other living expenses
Ways to Save Money and Move Out Sooner
Sharing your expenses with roommates can reduce your cost of living since you’ll be splitting the cost of rent and utilities. You can also save on initial expenses by purchasing second-hand furniture. Some people take on a second job or side hustle to increase their monthly income and save more money for their move.
Before Moving Out
It’s a good idea to check your credit score regularly before applying for a mortgage or submitting a rental application. This allows you to report errors or improve a lower score before submitting applications. Also, understanding your debt-to-income ratio will give you a better idea of your financial standing and help you plan better.
Keeping on Budget
If you find yourself dipping into your savings more often than expected or if your numbers aren’t adding up, take some time to review your budget. Keeping track of your spending helps identify areas where you can cut back. Regularly reviewing your Internet, phone, and other subscriptions can also lead to renegotiating better rates, saving you more money.
Finally, always be prepared for unexpected expenses. Having an emergency fund ensures that you won’t be caught off guard by surprise costs.
Trusted Relocation Services: Seamless Moves Across Town, Country, and Globe
If you’re planning a move and need a quote, Orbit International Moving Logistics Ltd. is your trusted partner for making your relocation as smooth and stress-free as possible. Whether you’re moving across town with our expert local moving services or embarking on a long-distance move to a new city, we’re here to provide comprehensive support every step of the way.
For those considering a move abroad, we specialize in international relocations, including moving to Israel and other countries in the Middle East. We have the experience and expertise to navigate the complexities of international shipping, customs regulations, and logistics, making your move overseas as seamless as possible. We understand that moving to another country can be overwhelming, but with Orbit, you can rest assured that every detail is taken care of.
Moving involves more than just transporting your belongings; it’s about starting a new chapter in your life. Whether you’re moving locally, across the country, or internationally, Orbit International Moving Logistics Ltd. is committed to providing exceptional service that meets your unique needs.
