Your detailed financial plan for moving away from home

Moving away from home has its pros and cons and it is why it is both exciting and very stressful and scary at the same time. One of the main issues young people face when moving away from home is finances. You don't know how expensive life really is until you move away from your parents and start living on your own or with someone who isn't willing to finance some things for you. That is why having a detailed financial plan for moving away is very important.

Knowing how much you are spending, saving, and earning is more than just important. It is something everything needs to know when living alone. And because the moving process is sometimes a big expense, this becomes even more important. That is why I decided to help you out by giving you some tips that I think will help you create a perfect detailed financial plan for moving away from home. If this didn't sound so important up until now, after reading this you will change your mind.

You need a source of income

If you are thinking about moving away from home, a reliable source of income is very much needed. Everything you do costs money. Eating, going out, driving, showering, internet, etc. You have to have an income first and then you can start planning your relocation to another home as well as your relocation finances. And if you already have a reliable and consistent source of income, what you need to do is calculate your average earnings. How do you do that? Add your paychecks from the last six months together and divide them by 6. The number you get is your average monthly earning.

Is your average monthly earning enough?

Now that you know how much you are earning on average, you have to calculate whether that is an amount of money large enough to cover all monthly expenses you might have. This is something that depends on where you are living, both the state and the city. Prices vary everywhere and $1,000 in New York won't get you the same as $1,000 in a small town in Idaho, for example. But have in mind that without a couple of thousand dollars a month moving away from your parents' home is impossible even though you will be frugal living after the big move.

Have some money saved on the side before you move out

Even if you do earn enough to cover all your monthly expenses, you need to have some money on the side. As life is unpredictable and as you never know what can happen, having some money saved is always a good idea. Without at least a few thousand dollars in your savings, don't even think about moving away. This is a risky step to make. Plus, knowing you have some money on the side makes life much easier and less stressful. You know you won't be left without a dollar in your pocket when you have savings. So, when you start thinking about moving away, you should also start saving money.

Expenses you have to cover as soon as you move away

I also want to tell you more about some of the expenses that you will have to cover as soon as you move away from home. Not a lot of young people are aware of them and it is why I think this is a necessary thing to include. You are going to need a first months' rent upfront. As soon as you move in, you have to pay your first rent. But before you pay that, you also have to pay the deposit to your landlord. And a lot of the time, the deposit is the same amount of money as the monthly rent. This means you need to pay at least $3,000 in the first month of living in your rented apartment which is not a small amount of money. Having a roommate makes covering these expenses much easier of course.

You also have to cover moving costs. Your moving costs can be anywhere from $50 to $1,000. This depends on how you are moving, how long-distance you are moving, how many things you are bringing with you, and even when you are moving. If moving long-distance, you need moving assistance.

How to create a detailed financial plan for moving away?

Now that you are aware of all the things that you need to pay for, you need to start planning your finances and actually figuring out how and if moving away is possible. Start by calculating your average income and writing it down. Now you need to figure out how much money you can save up monthly without it disturbing the day-to-day life that you are used to having. If you by any chance tend to spend a lot of money on shopping or any other things that aren't that necessary, maybe changing your habits for a few weeks is a good idea. This way you'll save a lot more money in a shorter period of time. This is going to make moving away from home possible sooner than you expected. And I believe that this is something you surely want.

Your detailed financial plan for moving away should also contain all the expenses you will have to cover. Calculate how much money you will spend on bills, rent, groceries, and other things. This calculation won't be very precise. But you can do a lot of research online and find out more about this. And once you do all that, make sure you save as much money as possible. Having a lot of money in your savings has never been a bad idea.

Simone Lee is a Manhattan native who works in the moving industry. She likes to share her experience with her customers and the readers of her blog. She is a proud owner of 2 dogs.