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How much money should i save?
How much money should i save before moving out and leaving by myself. What are some recommend jobs in order for my to be able to save money and move out ?
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Doc’s Answer
Dragon before deciding how to move out, ensure that you can afford to live on your own first. I suggest you create a detailed monthly budget, in what will be your expenses. Start by writing down what you spend and what you earn in a month, include any extra expenses that you may incur when you move out. Make sure to include items such as rent, insurance, transportation, utilities, food, and personal items. If you've been living at home, you may have been spending a larger portion of your money on entertainment or other non-essentials.
Before moving out, live on the budget you establish over the next few months as if you were already living alone. This test will indicate whether you are able to afford to live on your own and will prepare you for a much smoother transition into solo living. If the number is negative, you aren't yet covering your bills and need to earn more and/or spend less to live within your means, you may not want to move out yet because you'll want to pay down debt rather than pay for a place of your own and the associated expenses. If this describes your financial situation, and get along with parents, you may want to continue living with them temporarily so that you can pay down your debt more quickly.
Many young adults damage their credit when they first move out. If you make payments over 30 days late or fail to pay your bills on time and have them turned over to a collection agency or charged off, you can hurt your credit. If you're not prepared to maintain the sound money-management habits needed to maintain a healthy credit score, you may not be financially responsible enough to move out yet. In contrast, if you are willing to pay all of your bills on time, you will eventually have the stellar credit score needed to qualify for a good loan when you decide to rent on your own.
Discuss with your parents Dragon, they can be very helpful with your goals
Before moving out, live on the budget you establish over the next few months as if you were already living alone. This test will indicate whether you are able to afford to live on your own and will prepare you for a much smoother transition into solo living. If the number is negative, you aren't yet covering your bills and need to earn more and/or spend less to live within your means, you may not want to move out yet because you'll want to pay down debt rather than pay for a place of your own and the associated expenses. If this describes your financial situation, and get along with parents, you may want to continue living with them temporarily so that you can pay down your debt more quickly.
Many young adults damage their credit when they first move out. If you make payments over 30 days late or fail to pay your bills on time and have them turned over to a collection agency or charged off, you can hurt your credit. If you're not prepared to maintain the sound money-management habits needed to maintain a healthy credit score, you may not be financially responsible enough to move out yet. In contrast, if you are willing to pay all of your bills on time, you will eventually have the stellar credit score needed to qualify for a good loan when you decide to rent on your own.
Discuss with your parents Dragon, they can be very helpful with your goals
Thank You Kim. The past few years have been rewarding under your mentorship. Thank you for teaching me everything about CareerVillage.
Doc Frick
Paul Goetzinger MPA
Academic and Career Consultant and Freelance Writer
657
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Paul’s Answer
I might go with the 90/10 formula for saving. You save ten percent and live on ninety percent.
This means that out of every dollar you earn put aside ten cents, and use the remaining ninety cents to live on.
If you earn one thousand dollars each paycheck, save one hundred and put it into a savings account, certificate of deposit, IRA, savings bonds, or another savings plan and leave it alone.
Then use the remaining nine hundred dollars to pay bills, pay for food, and other living items.
Over time, this formula seems to work well towards saving towards attaining life goals, like getting a house, retirement, and other things.
This means that out of every dollar you earn put aside ten cents, and use the remaining ninety cents to live on.
If you earn one thousand dollars each paycheck, save one hundred and put it into a savings account, certificate of deposit, IRA, savings bonds, or another savings plan and leave it alone.
Then use the remaining nine hundred dollars to pay bills, pay for food, and other living items.
Over time, this formula seems to work well towards saving towards attaining life goals, like getting a house, retirement, and other things.
Updated
Kim’s Answer
Dragon,
Do you plan to live by yourself, or with friends? Will you live on a bus route, or will you need a car? Getting around in Texas without a car is not easy! Cars are expensive to buy and maintain. Are you frugal? Can you get by with shopping at 2nd hand stores? Can you furnish your apartment with items found at Goodwill?
Starting out is expensive. My first advice is, if you can get away staying at home for the ages of 18-22, do so! Even if it means some "rules" that adult children don't really care for. It's a great time in life to be able to have some disposable income and enjoy life a little, because finances are about to get a little tight! It also gives you time to start collecting kitchen essentials, bedding, cleaning supplies (very expensive), etc.
But, to answer your question. Karin hit on the Emergency Fund. That is important. Otherwise every time you have an "unforeseen" emergency, you put it on a credit card and you start falling behind. As a single person who spends almost nothing on entertainment (unless the dog is considered entertainment!) living outside San Antonio, I spend about $3000 a month. So you should aim for an emergency fund, I would say, of about $7500. Plus whatever it will cost you for first and last month's rent and the security deposit.
After a while, you will come to see that most emergencies can in fact be "foreseen." Cars break down, people get sick, they lose their jobs, or the rent increases, etc. Learning to plan for the unpredictable makes it all work out.
Also, please don't get a pet. The veterinary bills are very expensive. Wait until you are established and can work them into your budget!
Moving out is exciting! Hope all goes well for you!
Do you plan to live by yourself, or with friends? Will you live on a bus route, or will you need a car? Getting around in Texas without a car is not easy! Cars are expensive to buy and maintain. Are you frugal? Can you get by with shopping at 2nd hand stores? Can you furnish your apartment with items found at Goodwill?
Starting out is expensive. My first advice is, if you can get away staying at home for the ages of 18-22, do so! Even if it means some "rules" that adult children don't really care for. It's a great time in life to be able to have some disposable income and enjoy life a little, because finances are about to get a little tight! It also gives you time to start collecting kitchen essentials, bedding, cleaning supplies (very expensive), etc.
But, to answer your question. Karin hit on the Emergency Fund. That is important. Otherwise every time you have an "unforeseen" emergency, you put it on a credit card and you start falling behind. As a single person who spends almost nothing on entertainment (unless the dog is considered entertainment!) living outside San Antonio, I spend about $3000 a month. So you should aim for an emergency fund, I would say, of about $7500. Plus whatever it will cost you for first and last month's rent and the security deposit.
After a while, you will come to see that most emergencies can in fact be "foreseen." Cars break down, people get sick, they lose their jobs, or the rent increases, etc. Learning to plan for the unpredictable makes it all work out.
Also, please don't get a pet. The veterinary bills are very expensive. Wait until you are established and can work them into your budget!
Moving out is exciting! Hope all goes well for you!
Updated
Karin’s Answer
Hi Dragon,
I think the more important thing is that you have a steady job because you'll have monthly expenses. When you have a job, make a budget that includes all your monthly needs, i.e. rent, utilities, food, some clothes every now and then, phone, a bit for entertainment (books, movies, going out), sports, transport, toiletries, medical expenses etc. Figure out how much rent you can afford without stretching yourself too much. Make sure you always live within your means and try to save a little every month for a rainy day.
As a young person, you probably don't have a lot of possessions to move, so the move itself should be cheap. But you'll likely have to pay a security deposit for your accommodation or to have utilities connected.
Now to the savings. As a rule of thumb you should aim to always have about 3 to 6 months worth of living expenses saved so you can get over e.g. a job loss without losing your accommodation or going hungry. If you are lucky enough that you could move back home if necessary, you can probably get away with less for a start but you need to make sure to build up that safety cushion.
Good luck!
KP
I think the more important thing is that you have a steady job because you'll have monthly expenses. When you have a job, make a budget that includes all your monthly needs, i.e. rent, utilities, food, some clothes every now and then, phone, a bit for entertainment (books, movies, going out), sports, transport, toiletries, medical expenses etc. Figure out how much rent you can afford without stretching yourself too much. Make sure you always live within your means and try to save a little every month for a rainy day.
As a young person, you probably don't have a lot of possessions to move, so the move itself should be cheap. But you'll likely have to pay a security deposit for your accommodation or to have utilities connected.
Now to the savings. As a rule of thumb you should aim to always have about 3 to 6 months worth of living expenses saved so you can get over e.g. a job loss without losing your accommodation or going hungry. If you are lucky enough that you could move back home if necessary, you can probably get away with less for a start but you need to make sure to build up that safety cushion.
Good luck!
KP
Updated
Rebecca’s Answer
Thank you for your question. This is question more on financial management. Firstly, you may need to determine what you need and what you want. 'What you need' is something essential to you, e.g. your travel expense, meals, etc. 'What you want' is something nice to have, e.g. a luxury handbag, luxury watch, etc.
Below are my suggestions :
1. Calculate how much you need to live out, e.g. rental, meal & travel expense, groceries, etc.
2. Can you income support the above?
3. You can divide in your income into 3 parts :
a. What you need to spend in point 1 above
b. Save some monies every month
c. The remains can be used to spend on something you want
Hope this helps! Good Luck!
Below are my suggestions :
1. Calculate how much you need to live out, e.g. rental, meal & travel expense, groceries, etc.
2. Can you income support the above?
3. You can divide in your income into 3 parts :
a. What you need to spend in point 1 above
b. Save some monies every month
c. The remains can be used to spend on something you want
Hope this helps! Good Luck!
James Constantine Frangos
Consultant Dietitian & Software Developer since 1972 => Nutrition Education => Health & Longevity.
3773
Answers
Updated
James Constantine’s Answer
Hey there, Dragon!
Getting your financial ducks in a row before you fly the nest is super important. It's a big step towards being financially independent and stable. How much you need to save before moving out can depend on a bunch of things, like where you live, how much it costs to live there, your lifestyle, and your financial goals. But a good rule of thumb is to try and save up three to six months' worth of living expenses. That includes everything from rent and utilities to groceries, transportation, and other essentials.
Creating a budget is a smart way to figure out how much you need to save each month to reach your goal. Start by working out your monthly expenses and then subtract that from your monthly income. Whatever's left over is what you could potentially save each month. Don't forget to factor in unexpected costs and emergencies too.
When it comes to finding a job that'll help you save money and move out, there are a few options you might want to consider. Some jobs that are great for saving money include:
Software Developer/Engineer: Tech professionals are in high demand these days, and software developers and engineers can earn pretty good salaries. Working in this field could help you save a lot of money towards your goal of moving out.
Healthcare Professional: Jobs in healthcare, like nursing or medical technology, are stable and often pay well. They also often offer chances for career advancement and higher earning potential, which can help you save for your future home.
Financial Analyst/Accountant: Working in finance or accounting can be pretty lucrative too. These jobs often come with competitive salaries and sometimes bonuses, making it easier to save up for your move.
You could also think about part-time or freelance work in things like graphic design, writing, tutoring, or web development to boost your income and speed up your savings.
Moving out on your own means you need a solid financial plan. Do some research on the cost of living in the area you're planning to move to, including rent, utilities, transportation costs, and other necessary expenses. Knowing these costs will help you set a realistic savings goal.
And remember, there are one-time costs when you move out too, like security deposits, furniture, kitchen supplies, and other essentials for setting up your new place.
In a nutshell, how much you need to save before moving out depends on your specific situation. Making a budget and sticking to it will be key in reaching your savings goal. Plus, chasing careers with higher earning potential or finding extra sources of income can speed up the saving process.
Here are the top 3 authoritative reference publications:
Forbes - www.forbes.com
The Balance - www.thebalance.com
Investopedia - www.investopedia.com
May your efforts be blessed!
JAMES.
Getting your financial ducks in a row before you fly the nest is super important. It's a big step towards being financially independent and stable. How much you need to save before moving out can depend on a bunch of things, like where you live, how much it costs to live there, your lifestyle, and your financial goals. But a good rule of thumb is to try and save up three to six months' worth of living expenses. That includes everything from rent and utilities to groceries, transportation, and other essentials.
Creating a budget is a smart way to figure out how much you need to save each month to reach your goal. Start by working out your monthly expenses and then subtract that from your monthly income. Whatever's left over is what you could potentially save each month. Don't forget to factor in unexpected costs and emergencies too.
When it comes to finding a job that'll help you save money and move out, there are a few options you might want to consider. Some jobs that are great for saving money include:
Software Developer/Engineer: Tech professionals are in high demand these days, and software developers and engineers can earn pretty good salaries. Working in this field could help you save a lot of money towards your goal of moving out.
Healthcare Professional: Jobs in healthcare, like nursing or medical technology, are stable and often pay well. They also often offer chances for career advancement and higher earning potential, which can help you save for your future home.
Financial Analyst/Accountant: Working in finance or accounting can be pretty lucrative too. These jobs often come with competitive salaries and sometimes bonuses, making it easier to save up for your move.
You could also think about part-time or freelance work in things like graphic design, writing, tutoring, or web development to boost your income and speed up your savings.
Moving out on your own means you need a solid financial plan. Do some research on the cost of living in the area you're planning to move to, including rent, utilities, transportation costs, and other necessary expenses. Knowing these costs will help you set a realistic savings goal.
And remember, there are one-time costs when you move out too, like security deposits, furniture, kitchen supplies, and other essentials for setting up your new place.
In a nutshell, how much you need to save before moving out depends on your specific situation. Making a budget and sticking to it will be key in reaching your savings goal. Plus, chasing careers with higher earning potential or finding extra sources of income can speed up the saving process.
Here are the top 3 authoritative reference publications:
Forbes - www.forbes.com
The Balance - www.thebalance.com
Investopedia - www.investopedia.com
May your efforts be blessed!
JAMES.
Houcine Lakhchach
Career Development Specialist | U.S Department exchange Alumnus | EFL/ESL trainer | Program manager
139
Answers
Updated
Houcine’s Answer
The amount of money you should save before moving out and living on your own depends on various factors, including your location, lifestyle, and financial goals. As a general guideline, experts often recommend having at least three to six months' worth of living expenses saved as an emergency fund. This includes rent, utilities, groceries, transportation, and other essential costs.
To save money effectively, consider jobs that offer a balance between income and flexibility. Some options may include:
Administrative Assistant or Office Support:
Many offices offer entry-level positions that can provide stable income and opportunities for growth.
Retail or Customer Service:
Jobs in retail or customer service can offer flexible hours and may provide employee discounts, helping you save on essentials.
Freelancing or Gig Economy Jobs:
Consider freelancing in areas such as writing, graphic design, or virtual assistance. Gig economy jobs, like food delivery or rideshare driving, can also provide flexibility.
Healthcare Support Roles:
Jobs like medical assistants or healthcare aides often require specific training but can offer stable employment in a growing industry.
Trade Apprenticeships:
Explore apprenticeships in trades such as plumbing, electrical work, or carpentry. These roles often provide hands-on experience and a pathway to a well-paying career.
Warehouse or Logistics Positions:
Positions in warehouses or logistics may offer competitive pay and benefits, especially in areas with a thriving distribution industry.
Remember to create a budget to estimate your monthly expenses and determine how much you need to save. Additionally, researching the cost of living in your desired location can help you set realistic savings goals. Building a strong financial foundation before moving out will contribute to a more secure and successful transition to independent living.
To save money effectively, consider jobs that offer a balance between income and flexibility. Some options may include:
Administrative Assistant or Office Support:
Many offices offer entry-level positions that can provide stable income and opportunities for growth.
Retail or Customer Service:
Jobs in retail or customer service can offer flexible hours and may provide employee discounts, helping you save on essentials.
Freelancing or Gig Economy Jobs:
Consider freelancing in areas such as writing, graphic design, or virtual assistance. Gig economy jobs, like food delivery or rideshare driving, can also provide flexibility.
Healthcare Support Roles:
Jobs like medical assistants or healthcare aides often require specific training but can offer stable employment in a growing industry.
Trade Apprenticeships:
Explore apprenticeships in trades such as plumbing, electrical work, or carpentry. These roles often provide hands-on experience and a pathway to a well-paying career.
Warehouse or Logistics Positions:
Positions in warehouses or logistics may offer competitive pay and benefits, especially in areas with a thriving distribution industry.
Remember to create a budget to estimate your monthly expenses and determine how much you need to save. Additionally, researching the cost of living in your desired location can help you set realistic savings goals. Building a strong financial foundation before moving out will contribute to a more secure and successful transition to independent living.