How To Save Money To Move Out: 8 Steps for Success

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Contributor, Benzinga
June 26, 2023

One-third of adults younger than 34 live with their parents, according to the 2021 U.S. Census Bureau. Moving out is exciting and liberating, but you’ll need to plan carefully by saving money to move out. Savings will help you make a smooth transition and form a solid foundation for your new independent life. Make sure you can cover the costs of the move, have adequate funds for living expenses and an emergency fund in case things don’t go as planned. Sound planning starts with understanding the cost of your move and your current expenditures. Then set goals and a budget. 

Here’s how to save up to move out. 

Why Saving Money Is Key for a Successful Move

Savings provides financial stability and security during the transition to independent living. Moving out requires upfront costs like security deposits, rent, utility setup fees and furniture or household items. Savings allow you to cover these expenses without incurring debt or relying on credit cards.

Moving to a new place often brings unexpected challenges and expenses. If you’ve saved, you can create an emergency fund for unforeseen circumstances. Contingency funding will reduce the risk of financial stress as you start your new life.

Saving money to move out will give you more flexibility, allowing you to choose the best housing options and negotiate better terms. You can explore convenient neighborhoods, consider rental or purchase options and have the means to align your choices with your priorities.

How Much Money Should I Save Before Moving Out?

How much you need for the move depends on your lifestyle. Create a baseline of how much you’ll spend on living expenses by adding the rental cost, utilities, food, healthcare, insurance and existing debts. Aim for at least three months of living expenses. This way you’ll provide for any contingencies and financial security in case you lose your job or have a medical emergency.   

Budget for moving costs, including packing supplies, moving services, transportation and utility set-up costs. Research prices, compare options and budget accordingly. Landlords often want a deposit or rental upfront. 

If you are starting afresh or moving to a place without furniture or essential household items, you must account for these expenses. Decide what you need immediately and what can wait until you’ve settled in.

The more you can save, the better prepared you’ll be for unexpected events. 

8 Steps for Saving Money to Move Out

Here are eight simple steps for saving money to move out

Step 1: Assess Your Current Financial Situation

You must know your income, expenses and savings to work out how much you can save toward moving out. Set a budget based on an analysis of your current income and expenses. 

Step 2: Set a Moving-Out Savings Goal

Define a savings goal for moving out, considering factors like rent, security deposit, moving expenses and initial household setup costs.

Step 3: Create a Realistic Saving Timeline

Determine a realistic timeline based on your savings goal and when you plan to move out. Break down the total amount needed into smaller monthly or weekly savings targets.

Step 4: Develop a Moving Budget

Create a comprehensive moving budget to estimate expenses like rent, utilities, transportation, furniture and other essentials. By setting a budget, you will gain a clear understanding of your spending habits and identify areas where you can cut back. Use budgeting tools or apps to track your spending and identify areas where you can lower your expenses.

A moving budget ensures that you keep abreast of current costs and keep saving money to move out. 

Step 5: Minimize Unnecessary Expenses

Cutting back on nonessential expenses will help you accelerate saving money to move out. Evaluate your lifestyle choices and identify areas that you can change. Instead of going out to eat, cook meals at home and pack a work lunch. Explore free or low-cost entertainment options, like community events. Read library books rather than buying them. Small sacrifices now can make a big difference in the long run. Identify discretionary spending areas to cut back. Avoid impulse buying. 

Step 6: Explore Cost-Saving Options

Research cost-saving options for moving services, packing supplies and utilities. Look for discounts, compare quotes and consider do-it-yourself options to reduce expenses.

Step 7: Increase Your Income

Find ways to boost your income and grow your savings. Consider taking a side job or freelancing gig in your spare time. Look for opportunities to monetize your skills or hobbies. Clear out personal items you no longer use. Sell anything others may value. This way you’ll increase your income and reduce the cost of moving because there is less to move. 

Step 8: Automate Savings and Track Progress

Make saving money a habit by automating the process. Set up an automatic transfer from your paycheck to a separate savings account for your move-out funds. This approach will ensure you save a portion of your income before you’re tempted to spend it. Treat your savings as a nonnegotiable expense.

Use budgeting apps or spreadsheets to track your progress and stay motivated. 

Saving to Move Out is a Step in the Right Direction

If you’re planning to move out, having enough money will help you become independent and establish a solid financial foundation. Saving to move out entails taking control of your finances, trimming unnecessary expenses and increasing your savings. Moving requires careful planning and discipline, but the rewards of newfound freedom and personal growth are worth the effort.

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Anna Yen

About Anna Yen

Anna Yen, CFA is a personal finance writer with over two decades of professional finance and writing experience in roles within JPMorgan and UBS derivatives, asset management, crypto, and Family Money Map. She specializes in writing about personal finance topics ranging from investments, budgeting, debt management, credit, student loans, insurance, and retirement planning to real estate and cryptocurrencies. Her work has been published on sites like Quicken, the crypto exchange Bybit, and