I'm a little surprised by that. Anyway, yes, I currently still live at home, but I do intend to, Lord willing, move out this year.
2024 me says, nope. The rent is TDH.
I'm a little surprised by that. Anyway, yes, I currently still live at home, but I do intend to, Lord willing, move out this year.
2024 me says, nope. The rent is TDH.
Updated 7/3/2024 for inflation (HOLY CRAP!)
While I've never moved out and am relying on secondhand information, one aspect about living on your own that I've practiced for years is nearly constant, and is applicable to lots of money issues: Budgeting. Your resources are finite. So, you need to figure out where each part of those resources are going to go. You also need to prioritize some items over another. This in a nutshell...is budgeting. So how do you do it for living on your own? Here's how you do it:
Take the last three months worth of pay stubs. Add the total of your net pay, then divide by 3. That's how you much you have to work with in your monthly budget. Either write that figure down on paper, or put it in a spreadsheet.
Below that number, we're going to write down our expenses. First of all is figuring out rent. Take your monthly income figure, and divide that by 3. Write that number below as rent. Remember this number: This is your target rent for finding an apartment or rented house. Whenever you look for a place, find one that rents for that amount or lower.
Next, write down all your current debts, such as student loans, credit cards, etc. Write down the minimum payments for each one.
Next, write down all your other expenses, such as cell phone bill, car insurance, etc.
Next, go to this website
(https://www.fns.usda.gov/cnpp/usda-food-plans-cost-food-monthly-reports)
to get an estimate of your groceries. Here are some figures for
May 2024:
For a single male 20-50 years old, a monthly
Thrifty plan would cost $303.90 (in 2021, it was $194). A low-cost plan costs $301.90 (in 2021, it was $251.80). A
moderate-cost plan would cost $378.20 (in 2021, it was $314.80). A liberal plan would cost $461.10 (in 2021, it was $385.40). For females, it's $242.40, $261.60, $319.90, and $407.90 (in 2021, it was $172.20, $218.60, $267.20, and $342.50),
respectively.
These figures are presuming that all meals and
snacks will be prepared at home.
Next, you'll want to know how much utility costs are. Look up utility rates for your target city. For example, according to AreaVibes (https://www.areavibes.com/ottawa-ks/cost-of-living/), estimted monthly utility costs are $217.10 (in 2021, it was $151.66). Remember, this is just an estimate. Also, add in about $30 (In 2021, I used to suggest $20) for water.
Now, take your monthly pay, and subtract all your expenses. If it's at zero or above, congratulations, you have a balanced budget. If it's less than zero, then you can't afford to move out.
(Updated 7/3/2024 to account for inflation and age)
I'm 37 years old. I've lived at home my entire life. If this were 70 years ago, this idea would be complete anathema. Today, I sense it's one of those things that's the "new normal".
Anyway, recently, I've decided to try to move out. For years, I've learned all about how renting works. I know I still have much to learn, but I wanted to share what I've learned with all of you from the lens of someone who's never moved out, someone whom Dave Ramsey would call a "turkey".
Firstly, I've made a list of things someone needs to do in order to get their first apartment or rental house. Again, I must stress, this is coming from someone whose knowledge of these things are secondhand, I highly suggest you talk to a landlord or someone who's rented before for more information. However, consider these points:
You'll
need to budget for the following:
Rent
Utitilies (includes
electricity, water, sewer, trash, etc.) Do some research on how much
utilities are in the area that you wish to live.
Groceries (A
great place to find common grocery costs would be the USDA Food Plan website.)
Internet
Cell Phone Bill
Car
Insurance
Gas
Renters Insurance (some landlords require this)
Any Outstanding Debts
Also, get a free credit report.
Car
Insurance
Health Insurance
Dental Insurance
Vision
Insurance
Any Retirement Accounts
Work
Your Bank
Prepaid
Debit Cards
Credit Cards
Voter
Registration
Amazon
PayPal
Netflix
So you've found an apartment that fits your needs. This is where you fill in all that information about your personal info, your pay stubs, your savings, your references, your roommates, etc.
Virtually every apartment is going to have you pay an application fee, usually between $30 and $80. This is nonrefundable, even if you get turned down for a place. This is why you need to make sure you can afford the place before you even begin the application. Ask and MAKE SURE you meet their income requirements. If not, you'll have to keep looking for apartments, and pay the application fee again and again and again.
Then, they will check your credit. This
is known as a hard pull, which will lower your credit score a little
Don't worry, you're applying for an apartment, so this is a good
thing. Just don't apply to too many apartments, that will make the
credit score drop even worse in the future. If you have a credit
score at around 720 or higher, you should be good to go.
1. First Month's Rent: This is obvious. You're simply
paying for the first month of living there.
2. Last Month's Rent:
This is usually charged as a sort-of “down payment” for the
annual term, and this is another thing you need to know about: Very
few properties offer what's called “month to month” leasing,
meaning you pay the rent one month at a time, and can move out at the
end of any month. No, the most common type of lease is the one-year
lease, meaning that you're committing to one year's worth of paying
rent. It's like your cell-phone contract, which is usually a
two-year commitment. And just like your cell-phone plan, it's
difficult to break the agreement in the middle of the year, so READ
THE LEASE AGREEMENT, as I will explain later.
3. Security Deposit:
This is also like a “down payment”, except the money doesn't go
towards the rent, but rather placed in a separate account to pay for
damage to the property whenever you leave it. You ever wonder why
people talk about trying to get their security deposit back? This is
why: Besides normal wear and tear, any damage you do to the
apartment, or any mess you leave in there, any dirt, etc. will be
cleaned up and repaired, and your security deposit is used to pay for
it. It's entirely possible to get back some, or even none of your
security deposit if you're not careful. Keep the place nice, and
don't trash the place, and you just might get all of your security
deposit back.
This is a good time to apply for renters
insurance. Try to get it through the same insurance company as your
car insurance, as they'll likely give you a discount. Renters
insurance is used to reimburse you for your items that may get
stolen, damaged in a fire, etc.
If there's anything I've missed or anything that's inaccurate, please don't hesitate to leave a comment and let me know. However, I'm almost certain that the process for renting an apartment, especially one that's managed by a company rather than owned by an individual or couple, is daunting. I've had co-workers who experienced their own adventures of moving to their first apartment, for a place over 30 miles away! Moving out is no cakewalk. If moving out is for you, get the facts, and get ready.
I'm a little surprised by that. Anyway, yes, I currently still live at home, but I do intend to, Lord willing, move out this year. 202...