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Experts Reveal How Much Money You Should Save Before Moving Out — And It’s A Lot

Plus, here are some tips to make it happen.

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Moving out on your own is an exciting new adventure. Whether you’re just moving to a new city or across the country, you want to be as prepared as possible to start comfortably in your new home. One way to make sure you’re ready to live on your own is to have a budget and savings, but how much money should you save before moving out? Elite Daily reached out to financial experts at Chase and Credit Karma for their input, and the amount is a little more than you would think.

You might want to move right now, but the question of how much money should you save before moving out could be preventing you from taking that next step. It’s no secret that having savings to fall back on is important. After all, moving is not cheap, but there are ways to save money to move out that’ll give you that push to follow your career goals or finally live in your dream city. If you’re currently wondering things like “how can I save money when I move,” “how much money should I save before moving to a city,” or even “how much money should I save to move without a job,” we’ve got your back. Thanks to the experts at Chase and Credit Karma, you’ll be able to resolve your money moving problems with these nine tips.

01

Have At Least Three To Six Months’ Worth Of Living Expenses Saved Up

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For anyone wondering how much money should you should save before moving, Credit Karma’s Chief People Officer, Colleen McCreary, says, “A general rule of thumb is to have at least three to six months’ worth of living expenses in savings.” Matt Gromada, Chase’s Managing Director, Head of Family, Student and Starter Banking, agrees, saying, “Your emergency fund should be several months of monthly expenses at your new location.”

When you move to a new place, you need to be able to cover not just your rent, but also a security deposit (which is typically first and last month’s rent), utilities, any new furniture you may need, and other expenses, like movers or a building fee, according to McCreary. You might think three to six months is a long time, but this cushion should be there should you need it down the line.

If you’re having trouble setting aside some extra funds, Gromada suggests using some tools your bank offers to help. “For instance, Chase offers Autosave, which allows customers to set up a repeating, automatic transfer from their checking into their savings account. You set it once and then don’t have to think about it again,” Gromada says. Even the tiniest amount each week can accumulate a lot over time.

02

Have Moving Expenses And An Emergency Fund

When saving up for a big move, Matt Gromada, Managing Director, Head of Family, Student and Starter Banking at JPMorgan Chase, tells Elite Daily that you want to aim to save for one-time moving expenses and an emergency fund. According to Gromada, those one-time expenses includ a “security deposit or down-payment and any moving costs (e.g., transportation to get you there, moving costs for your stuff).”

03

Work With Your Location

“Location plays a major role in how much you should save when moving out,” McCreary tells Elite Daily. If you’re asking yourself, “how much money should I save before moving to a city,” you’ll need to factor in transportation, dining out, and even parking. However, if you’re moving out of the city, McCreary mentions you need to “consider things like the increased cost of [your] commute as gas prices remain elevated.”

04

Start A Personal Budget Now

The minute you decide it’s time to move, you need to set up a personal budget for yourself that’ll allow you to start saving. McCreary suggests you calculate how much you need to save for your move and divide that by how many months you have left. The amount you get is how much you need to save each month to reach your goal. By planning ahead, McCreary says it can help you keep your moving costs within your financial bounds.

05

Sell Things You Don’t Need

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One of the ways to save money to move out and to lighten your boxes is to sell the things you don’t need. McCreary suggest getting rid of things like small kitchen appliances, outdated furniture, used books, and clothes you no longer wear. Going through your items will also help you organize the items that you do want to bring along as well.

06

Don’t Rush Into Furnishing Your New Home

When you get to your new place, McCreary says, “Don’t rush into furnishing the whole space.” Buying new furniture can be expensive, so only get the items “that are essential to your everyday.” This includes a dining table, your bed, and possibly a couch. Any home decor — unless it’s something you absolutely can’t live without — can wait. This is how to save money on your move.

When it comes time to shop for these unnecessary items, make sure you’re looking out for good sales. One hot tip from McCreary is that many retailers offer steep discounts during holiday weekends and throughout the year. Create a wish list and chip away at it over time.

07

Ask Your Friends And Family For Help

It doesn’t hurt to ask friends or family if they’re willing to help with your move. It can be a difficult task, but if someone wants to help, this can save you a ton on moving costs and be a way to save money on your move. Plus, as McCreary points out, “It’s a good excuse to spend some quality time with your loved ones.” Just make sure you treat them all to pizza and a round of drinks after everything is done.

08

Make Sure To Shop Around For A Moving Company

If you do go with a moving company, you want to find the best one for your budget. McCreary recommends you “shop around.” One way to do this is by asking friends for recommendations and getting different quotes to compare before you settle on a moving company. It also helps to check reviews, because you don’t want to go with a budget-friendly company that’ll put a dent in your furniture or drop your fragile box of dishes.

McCreary also warns that many moving companies have a number of hidden fees that you may not be aware of until you get hit with the bill. “These include things like packing supplies, moving insurance, and furniture disassembly and reassembly,” she says. Make sure to factor in for that or check the reviews as well to see if someone mentions that.

09

Prioritize Your Job Search

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If you’re dealing with the dreaded question, “how much money should I save to move without a job,” Gromada says that you should save a longer emergency fund. While your moving expenses won’t differ, you need to save at least six months of emergency expenses in your savings account if you’re moving without a job. McCreary agrees, but also recommends that to avoid running through your savings, “commit to prioritizing your job search throughout your moving process.”

While you may be dealing with moving stuff, it doesn’t hurt to take a break every once in awhile to look for jobs. McCreary also says that you should plan to live below your means until you find a steady income. This will help you stay out of debt and maintain financial independence. So, instead of going for a Starbucks run, try brewing some coffee in your new home.

Experts Cited:

Colleen McCreary, Credit Karma’s Chief People Officer

Matt Gromada, Managing Director, Head of Family, Student and Starter Banking at JPMorgan Chase