It doesn’t matter whether you are buying or renting, but are you ready to move out on your own? The prospect of moving into your first home can be exciting and a little scary at the same time. So, how do you know you are ready? The easiest way is to take a look at your finances and what you can afford to spend in advance.
Can You Afford Rent or Mortgage Payments?
If you’ve saved up, you may have enough in the bank to pay rent for the next few months, but will you be able to sustain that well after you move? Take a realistic look at your budget and find out. You can do this by listing your net income (what you take home) as well as your potential expenses (rent, utilities, parking, gas, food, fun, etc.) in two columns. If you don’t know how much you currently spend, track it for two weeks. Include everything you spend. After two weeks, double it – this will help you get an idea of what your monthly budget is. If you are spending more than you bring in each month, chances are you can’t afford to move out on your own yet.
What Else Will You Need?
There are other costs associated with moving out to live on your own besides your monthly expenditure. You’ll also need to consider the following before you move:
- Rental Deposit
- Damage Deposit
- Pet Deposit
- Utilities Deposit
- Moving Costs
- Settling-In Costs