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If you want quieter mornings, a cleaner kitchen, or a living room that doesn’t double as someone else’s hangout spot, you probably feel more than ready to move into your own place. But for all of the privacy and peace that solo living has to offer, it also comes with a steep price tag.
While personal loans or credit cards may help cover moving costs in a pinch, you’ll need to cover a litany of ongoing expenses from utilities and internet to groceries and toilet paper.
Can you afford to move?
Rent should fit comfortably in your budget in a normal month with room to spare for when other costs are higher than expected. A common budgeting strategy is to keep rent and essential utilities at or below 30% of your gross monthly income. For example, if you make about $6,000 per month, rent and utilities should hover at or below $1,800 per month.
However, you’ll need more than one month’s rent to move in. Along with first month’s rent, you may also need to pay application fees, a security deposit, and possibly the last month’s rent. Some apartments also charge pet fees, parking fees or building move-in fees.
Other upfront costs
Setup costs can sneak up, too. Depending on what you already own, you might need to pay for staples like:
- Furniture
- Pots and pans
- Dishes and cutlery
- Cleaning supplies
- Lightbulbs and lamps
- Shower curtains
- Towels
- Trash cans
- Pantry staples
- Basic tools
Some of these costs may not come up until shortly after you move in, which can make them easy to overlook.
Start with the essentials and go slow. If you can’t afford everything at once, prioritize. A mattress, towels and a cooking pan matter more on day one than the perfect coffee table.
If you can afford to move, can you afford to live alone?
While rent is important, it’s only one part of the equation. You’ll also be responsible for:
- Electricity
- Heating and cooling
- Water
- Internet
- Renters insurance
- Groceries
- Transportation
- Phone bills
Some of these expenses might fluctuate from month to month. For example, your heating bill may rise during a surprise cold snap. A car repair, medical copay or more expensive grocery run can also make a tight budget harder to manage.
None of this should discourage you from seeking out a new living situation if your current one doesn’t feel comfortable or healthy. However, living alone can create more financial pressure than freedom if you don’t typically have money left over after bills right now.
Don’t neglect your emergency fund
A surprise layoff, vet bill or broken laptop feels different when you no longer split household costs. Before moving, aim to have enough money saved to cover at least 3 months of essential living expenses. If your income varies or you don’t have a strong family support system, 6 may be more realistic.
Even a small emergency fund can help, but the goal is to avoid relying on credit for every unexpected expense. If repayment is difficult, one expensive month can turn into several stressful ones.
Test out your solo budget first
Before committing, test the numbers for 60 days. Keep paying your current share of rent, then move the difference between that amount and your projected solo rent into savings. Do the same for utilities, groceries and household supplies.
The trial run gives you a low-risk preview of what it might be like to live on your own. If you can save the difference comfortably, your plan may be realistic. If the test feels tight, you may need to consider a smaller apartment or house, find a less expensive neighborhood, or consider waiting to move until your income increases.
Remember your other goals
A place of your own should still leave room for your other financial goals. Maybe you want to keep saving for travel, pay down a credit card or finance a future purchase with an RV loan. If a higher rent payment would use up anything “extra” in your monthly budget, you may want to wait until moving out feels less financially tight.
It’s not just about the money
Splitting rent can make a big difference for your budget, but those savings may not be worth it if you don’t feel at home in your space. If you’re dealing with daily frictions like arguments over chores or clashing ideas about company, it may be time to look into other living arrangements.
Of course, you don’t have to have a negative experience to consider striking out on your own. Changing wants or needs can sometimes make a roommate setup feel stifling.
- You want to adopt a pet
- Things are getting serious with a romantic partner
- You need a quiet environment to work from home
- You find yourself dodging your roommates because you want to decompress
When moving out makes sense
Getting your own place can be the right move when your current living situation no longer supports your needs and your budget can handle the added responsibility. Before you stop splitting costs with roommates, look at the full picture. If you’re prepared for upfront moving costs, monthly bills, emergency savings and the goals you still want to fund, it may be time to make your move.
