My goal this year is to hopefully save enough money to move out, whether I do physically or not. I'm a full time college student and I currently work part time. I know these conditions aren't ideal for moving out, but I just want to get a good head start for saving, planning, finding house supplies/furniture/etc. I have been reading through the page (+more) but I still wanted to make a post. What are your recommendations for saving money/finances? What did you do when you started your move-out plan? What should I not do? Where should I look for deals/steals? Etc., etc., etc.. Anything helps! Just looking for some advice on where to start.
What should I do as someone saving to move out?
byu/GuideSad2361 inFrugal
Posted by GuideSad2361
10 Comments
You are already ahead just by planning early. Track your spending, build a small emergency fund first, and keep rent as low as possible by considering roommates. For furniture and basics, Facebook Marketplace, buy nothing groups, and thrift stores are your best friends. Do not rush buying everything at once or increase spending just because you have savings. Even small progress while in school helps a lot.
It’s much harder when you move out. I’d stay until you get a full time job after you graduate.
Buy secondhand when possible. Even better, ask older people in your life (who are in the downsizing stage of life). Especially boomers. They want their stuff to go to a good home.
I wanted a futon for my apartment. I casually mentioned it to my (boomer) aunt. Within 24 hours, I had one delivered free of charge. Her friend was looking to get rid of one.
See if you can set it up so part of your paycheck is automatically diverted into a HYSA (even $50 a month will help since a deposit is usually 3 months rent plus incidentals). Figure out which neighborhoods are cheaper and why, check for 2/3 bedroom apartments, check if your friends would be willing to live with you. After you know roughly where you want to live, with whom, and how much it will cost, calculate how many months it will take to save up for a deposit/etc. furnishing your place can be affordable through fb marketplace/thrifting/asking relatives if they have old furniture to get rid of. Financially speaking, if you can- save the money and live at home, housing costs have skyrocketed and housing is supposed to be around 20-30% of your income, if it is closer to 50-60% and you have a stable and safe living environment it is not worth it to move out for the sake of moving out.
If you are US based, most places will do a credit check to approve you to live there, even if it is just a person renting the other half of a duplex they own. If you do not have a credit card, get one, put a few things on it each month that you would buy anyway and pay it off. It will help that you have established credit. But ALWAYS pay it off. No exceptions.
Learn about how compound interest works. A lot of colleges will have short seminars in personal finance, and it’s worth it. Compound interest is what makes not paying your credit card each month a very expensive mistake, but also makes you have a solid retirement plan when you’re 55.
I would also start tracking your expenses, and before you spend money, ask yourself if it’s something you need. It’s ok to have drinks with friends, but it is way cheaper to do so at a person’s apartment than out somewhere. Or offer to go pick up food instead of getting it delivered. Being frugal isn’t about never having convenience, but it is about making sure you’re living within your means and with your long term goals in mind.
I would also figure out how much money you want to have at the point of moving out. You might need first and last month’s rent plus a security deposit. Add in, some basic furniture. Even second hand, you might want a few thousand dollars.
For me, I scrimped and saved in that last year of college after blowing all of my money during a study abroad in my junior year. I made nice meals with friends in our campus apartments and we split the cost of groceries. We ate like kings on about $200/week split 5 ways – granted that was several years ago.
The first year after college, I prioritized paying down loans and putting money into retirement – seriously. I lived with a lot of hand-me-down furniture and housewares that I got for free. I just replaced my pots and pans last year.. they were my great grandmother’s from the 80’s.
TLDR: Save as much money as you can, build your credit, be open to second hand, and don’t shy away from hand-me-downs just because they may not be your “style”. And learn about compound interest.
For now, if your living situation is tolerable, stay where you are and keep saving as much as possible. It’s not wise to spend your money on a place to live when you only work part time.
I left my family home at 17 when I started college. I won’t get into why, but it was really difficult and I had to work a lot to support myself. I don’t recommend that if you don’t have to.
Try to build a good nest egg, in case of accident, injury, or layoffs. If possible I’d aim for 1 to 2 mo savings that you can live off of(groceries, rent, basic bills), based on the COL for the area you want to move. Maybe a little more if you want to move to a different city/state.
Ask for household supplies for gift giving events, or gift cards to your local grocers. A years supply of coffee or pots and pans will help out so much in the long run.
On that note, when it gets closer to time to move go estate sale-ing. You’ll find well built, relatively inexpensive furniture and household goods that way. Plus it can be kinda fun.
And, controversial take, but get a secured credit card now. Only use it sparingly and pay it off when it’s due. Boost your credit now to help with the apartment hunt. Credit scores can make the difference for landlords when choosing applicants and getting into nicer spaces.
When I moved out or even now when I need a lot of money for something the first thing I do is I cut out unnecessary stuff. Examples can be like quit buying alcohol; if you smoke this would be a good time to quit; stop eating out/ordering in (crazy expensive now, make your own meals); if you are buying clothes strongly think about it – do you really need that new top or maybe you already clothes in your closet you haven’t worn for a while; stop buying junk food; stop going out to buy coffee (make it yourself at home); If you read and are buying books or ebooks – use your local library for free books/ebooks. There are a lot of little things that you can stop or reduce as every little bit adds up.
Start with a bare bones budget that includes rent at the average for your area, utilities, internet, groceries, transit, and a small emergency line, then live on that now while you’re still at home and bank the rest. Pick up used basics months ahead from Facebook Marketplace, thrift stores, and local buy nothing groups, and only buy what you’ll actually use in the first 60 days. Keep a moving fund separate from your general savings so you don’t dip into it. For extra income, avoid the spammy job boards, wfhalert sends vetted remote listings by email and it’s mostly normal stuff like customer support or data entry, which can be a decent bridge while you’re saving. Biggest don’ts, don’t sign a lease without a 3 to 6 month emergency cushion, don’t finance furniture, and don’t underestimate deposits and setup fees.
Find a roommate who you know and trust. Have a conversation about preferences and habits. They may be a good friend to you, but that doesn’t necessarily mean they have the same co-habitating and cleanliness habits as you. Don’t live with anyone who’s routinely getting drunk or high. Having to break a lease is expensive.
You don’t need 100% of your furniture to move out. When I moved out during college, I had a bed, dishes and cookware, and lawn furniture. I slowly added thrifted and used items over time. FYI- during your university’s move out week is a great time to pick up free furniture off curbs. Dollar stores are a good place to pick up cleaning supplies and some basic home goods for cheap.
Also, make sure you are taking advantage of resources at your university. There are likely financial planning workshops, sites that list inexpensive student-friendly housing, and even campus food pantries. Most of these resources are underutilized simply because students don’t know about them and don’t bother to look. Do some research on your university’s Student Affairs website.