How Much Money Do You Need to Move Out?

When it comes to determining how much money do you need to move out, it depends on your circumstances and it will certainly be different for everyone. There are numerous internet sites that offer online calculating systems along with budget worksheets that can be extremely helpful when it comes to figuring out these types of expenses. The website MyFirstApartment.com provides useful information to assist you before moving by helping you first determine how much rent you can afford to pay. This article, however, will provide a basic summary of the overall costs involved.

Estimated Moving Costs

The most important fact to remember is you must be honest about your financial status to create an accurate budget. Then you must remain faithful in the precise use of this budget. Thus, how much money do you need to move out? Again, so much depends on your circumstances such as how far you’re moving, how much you’re moving, and how much will be needed in your new place. To simplify matters, we’ll be discussing a local move from/to an apartment for one person who won’t be sharing expenses.

As mentioned above, the first step to figuring out how much money do you need to move out is to ascertain how much you can afford to spend on rent payments. There’s a formula to use to figure this out: net gross.

Divide your monthly net (not gross) income by three; or
Divide your gross annual salary by forty.

Therefore, if your gross salary is $48,000 ($48,000 ÷ 40 = $1,200), then the maximum you can afford to pay monthly for rent is $1,200.

Factors That Influence Moving Costs

If you’re renting a truck because you’re fortunate to have friends or family members to help with the heavy lifting, then depending on how far you’re moving and the supplies you’ll need such as packing tape, boxes, bubble wrap, etc.:

You might need a maximum of $150. This doesn’t include the amount you may need to pay to the people that help with the move!
When renting a truck, there’s the rental truck fee plus gas and mileage fees.
If you’re using a full-service moving company, the price will range from $300 – $600 depending on your circumstances.
How far are you moving away? When hiring a moving company, gas and mileage will be calculated into your moving costs.
Do you have complete furnishings for your new place or is this your first place and you’ll not only need furniture but household goods such as kitchenware, bathroom necessities, cleaning supplies and items, and so on.
Depending on what’s needed, this could result in thousands of dollars in expenditures that may have to be divided so you can purchase what’s needed overtime. MyFirstApartment.com also has links to articles that could be useful in helping you find reasonably priced furniture that doesn’t break the bank!

NOTE

When calculating moving expenses for out-of-state moves, it will cost more. Also, moving into a home will make a vast difference as down payments may be required that could be considerably more than a combined rent/security deposit payment for an apartment. Moving into a home will likely incur other fees as well.

Additional Costs When Moving

Typical additional expenses include the following: Always

Security deposit: approximately 1 month’s rent but at some places, it could be more or less.
Background Check: Usually the tenants’ responsibility to pay and the price could range from as little as $30 to as much as $100.
Credit Check fees?
Utility payments: Some deposits are required as soon as you move in.
Renter’s Insurance?
Unexpected Expenses: Always have money on hand for these occurrences.

Thus, using a gross salary of $48,000/year, how much money do you need to move out could result in final expense estimations such as this:

First month’s rent = $1,200
Security deposit = $1,200
Moving costs = $600 (depending on what is used)
Furniture costs = $1,000 (an approximation that can be adjusted)
Miscellaneous = $700 (utilities, insurance, applicable fees, house ware supplies, unexpected expenses. Can be adjusted accordingly)

Approximate Total Costs = $4,700

How to Choose a Moving Company

Finding a reputable moving company will require time to do thorough research on several companies. On their website, Realsimple.com gives comprehensive instructions on how to choose a moving company. Here, these facts are summarized as follows:

First look for companies that are located near your current home and whose rates are within your budget; read over the information on their websites.
You should compare 2 or 3 companies. Have them give estimations on how much money do you need to move out after they understand all the requirements for your move (preferably after an in-home inspection).

Better Business Bureau: “binding”,“binding not-to-exceed”

Check the Better Business Bureau for a quick, reliable evaluation of each company.
Ask about “binding” and “binding not-to-exceed” estimates. The good thing is if given, the rates will not go over the estimate received. With non-binding estimates, the final cost could go over the estimation given.
Show the estimator everything to be moved in your home. This will avoid delays on the moving day of disagreements arising from the mover determining the amount of furnishings and items calculated in the original estimation is now more than what was shown during the in-home inspection.

Do Everything Directly

Deal directly with the moving company as opposed to using a company that hires other companies to do the jobs.
Get signed copies of all bills of lading, service agreements, price estimations, moving dates and any other contractual papers related to your move.
Ask all necessary questions to receive the answers needed and ask for references.
Is the company properly licensed and insured?
Once all the research is completed and you’ve made your choice, make sure you get all contact information that’s available, such as telephone numbers, physical addresses, email addresses, and so on. You want to be able to stay in contact with the company throughout the entire process.

Conclusion

The biggest problem when calculating how much money do you need to move out is that we can end up with a partial expense list. We have to consider how much money will be needed before and during the move, and the expenses that will come due immediately after the move is completed. There’s always the chance that something will be left out but if we handle our move with thought, planning, and appropriate timing, there’ll be less chance of a complete emotional meltdown!

Image: depositphotos.com.