Can I Afford to Move Out? Start With These 3 Numbers
Moving out for the first time is exciting, but being able to pay the first month's rent doesn't necessarily mean you're financially ready.
Before you sign a lease, there are three numbers you should know.
Your Move-Out Number
Moving into your first apartment can cost more than the rent and security deposit.
There may be utility deposits, moving expenses, furniture, kitchen and bathroom basics, and other things you'll need to get settled.
Your move-out number is the amount you need to get from where you are now into your new place without starting out already behind.
Your Monthly Number
Next, look at what happens after you've moved in.
How much money actually comes in each month? How much will go out for rent, utilities, food, transportation, insurance, phone service and your other regular expenses?
Knowing whether your income can support your monthly bills is just as important as having enough money to move.
What's Left?
This may be the most important number of all.
After your monthly bills are accounted for, what's left?
Having money left over gives you room for everyday spending, unexpected expenses and the things that don't arrive as a regular monthly bill.
Knowing this number before you move can help you decide whether you're ready now—or whether giving yourself a little more time could put you in a stronger position.
Ready to Find Your Numbers?
Red to Green was created to help you answer the question "Can I afford to move out?" using your own income and expenses.
The book includes worksheets to help you determine what you'll need to make the move, see how your income compares with your monthly expenses, and then establish a practical way to stay on top of your bills once you're living on your own.
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