I’ve been thinking about moving out soon and I’m trying to figure out what a realistic amount of savings looks like.
Most advice online says things like “have 3–6 months of expenses saved,” but that feels kind of vague in practice.
If I break it down for myself:
• Rent (estimated): \~$900
• Utilities + internet: \~$150
• Food: \~$300
• Other stuff: \~$200
So roughly ~$1,500/month
That would mean I should have around $4,500–$5,000 saved before moving out if I follow the 3-month rule.
But I’m not sure if that’s actually enough in real life.
Like:
• Do you include deposits + furniture in that number?
• Did you guys have a separate emergency fund?
• Or did you just move out once you had stable income?
I feel like there’s a big difference between “ideal advice” and what people actually do.
Curious how it went for you — how much did you have saved when you moved out?
How much should I realistically save before moving out?
byu/No-Inspector-9804 inpersonalfinance
Posted by No-Inspector-9804
7 Comments
I’d be very comfortable with moving out with 5k and with those expenses. Remember you don’t need to furnish things immediately. I just moved out as soon as I had a full time job.
6 meses é melhor e você não pode usar o valor exato de 1500. Caso ocorra uma emergência você vai se ferrar muito, arredonde para 2000 e tera todo mês 500 entrando na reserva de emergência.
Here’s how this works
1. Let’s say you lost your job. How long would it take you to get a new job? This is the months of savings you need.
2. How much can you cut out of your spending? Or if easier, how much must you spend to get by at a bare minimum while looking for a job.
Multiple 1 by 2 and you get the bare minimum your emergency fund should be.
Now, if you want to be a little safer, consider what might happen if you had really bad luck and got sick or had to fix something import. You want a little padding above the bare minimum.
> Do you include deposits + furniture in that number?
Huh furniture? What?
> Did you guys have a separate emergency fund?
Yes, cause it’s easier for me to track.
Also, if you’re ever tempted to spend this, might be better to keep separate. Use a HYSA or if you want to be more advanced and live in a state with income tax, look in this sub for SGOV or VUSXX.
> Or did you just move out once you had stable income?
Yes, but also had roommates. We were all working together cause they hired us as a cohort in new program.
Edit: formatting
Move out of your parents? Would they take you back in if something happens? Do you have a safety net with them if you need to borrow money?
I moved out with no money but I had roommates to keep things cheap and I always knew I could move back, I also borrowed money when I needed to. Makes a big difference.
I moved out 35 years ago and I had about $30K saved up. As a result, I’ve never missed a bill in my life, had to carry a credit card balance, or could t afford any necessities plus reasonable wants.
> Most advice online says things like “have 3–6 months of expenses saved,” but that feels kind of vague in practice.
It’s generic advice based on the idea that finding a new job takes, on average, 3-6 months. Self-insuring against loss of income to avoid an eviction going on your record.
Some people recommend instead basing your emergency savings amount off of your deductibles. What would you need to have in a serious situation involving your health or a pet or your car?
> That would mean I should have around $4,500–$5,000 saved before moving out if I follow the 3-month rule.
Nah, I think going by this book you would want to have that much cash in addition to moving expenses. Most apartments require first month’s rent, last month’s rent, and a deposit equal to your monthly rent, so that’s $2,700. Then whatever it’s going to cost you to move your stuff (renting a truck) or buy new stuff.
> I feel like there’s a big difference between “ideal advice” and what people actually do.
Would not surprise me if most people floated at least some of their moving expenses on credit (personal loan, credit cards).
In HCOL, i had… A lot saved. I would say to try to increase your efund to at least 6 months. So maybe an even 10k to be safe… Hoe long would it take you to get there before moving out?