Moving out for the first time (or even the fifth) is a big milestone. It’s exciting, a little nerve-wracking, and — let’s face it — often more expensive than people expect. In fact, a recent study from Homebay showed that over half of movers find it much more costly than anticipated. From security deposits and moving trucks to furniture and basic household items, the expenses can reach from $2,000 to $12,000.
Fortunately, this guide is here to help. We’ll walk you through all the major costs, from that first month’s rent and deposit to monthly bills, unexpected fees, and ways to save. By the end, you’ll know exactly how much money you need to move out so you can start this next chapter with financial confidence.
KEY TAKEAWAYS
- Rent will likely be your biggest expense, but moving out involves paying more than just rent.
- Before moving in, you need to cover security deposits, first and possibly last month’s rent, and moving out costs.
- You need to factor utilities, groceries, transportation, and insurance into your budget.
Calculate the Initial Costs of Moving Out
Before you even set foot in your new place, your bank account is going to feel it.
Security Deposit
Your landlord will likely ask for a security deposit. Think of it as a financial safety net, but for them, not you. This deposit helps cover any potential damage to the property or unpaid rent if things go south.
Usually, landlords charge the equivalent of one month’s rent. So, if your rent is $1,500, you’ll need to hand over an extra $1,500 upfront.
Ouch, right? But don’t worry. If you keep the place in good shape and you pay rent on time, you should get this money back when you move out. Just be sure to read the lease carefully so you know what could cause deductions.
First and Possibly Last Month’s Rent
On top of the security deposit, most landlords also want the first month’s rent before handing over the keys. Why? It’s their way of making sure you’re serious about staying and that they’re covered if you decide to leave without notice.
For a place that costs $1,500 per month, that means paying $3,000 upfront.
Some landlords might only ask for the first month’s rent and a security deposit. But if they want all three, your move-in costs can add up really fast, so having $5,000 saved could help you a lot.
Moving Expenses
When getting your stuff from point A to point B, the numbers can add up fast. Local moves within the same city or nearby usually cost between $914 and $2,529, with the national average sitting at $1,711.
If you’re traveling across states, expect to pay around $4,600. That’s before you factor in things like gas, hotels, and food on the road.
You could also consider renting a small moving truck to save money. For local moves, expect to pay between $20 to $30 per day, plus a mileage fee of $0.7 to $2 per mile. Depending on the company and the distance, rental costs for longer distances jump to around $300 to $500 per day.
Of course, driving a moving truck also means loading, unloading, and navigating traffic with all your belongings in the back. If that sounds like a headache, hiring professional movers might be worth the extra cost.
If needed, personal loans could help cover initial moving expenses. But be sure to borrow responsibly and have a repayment plan. Most financial experts recommend saving up prior to moving instead of taking out a loan.
Furniture and Household Items
Once you’ve got the keys to your new place, what are you actually going to put in it in case you move into an unfurnished house?
Furnishing an apartment isn’t cheap. Depending on your style and what you already own, you could spend anywhere from $3,500 to $5,800 just to make your place feel like home.
Want to keep costs down and save money without thinking? Second-hand stores, online marketplaces, and hand-me-downs from family and friends can save you tons of money.
Some items, like a mattress, are worth buying new, but for things like a dining table or bookshelves, a little bargain hunting can go a long way.
Plan Future Monthly Living Expenses
Getting the keys to your new place is just the beginning. Now comes the part where you actually have to afford living there.
Rent
Typically, rent will be your biggest expense and financial experts suggest keeping rent at or below 30% of your monthly income.
For example, if you earn $5,000 per month, try to keep your rent at $1,500 or less. This way, you have enough left over for other essentials like utilities, groceries, and savings.
If rent prices in your area are high, consider getting a roommate. You could also look for a smaller place to stay within budget.
Utilities
After rent, utilities can take a decent chunk out of your budget each month. For electricity, water, gas, sewer, trash, internet, phone, and streaming services, you can expect to pay around $600 a month.
The exact amount depends on your usage and location. Running the AC all summer? Expect a higher electricity bill. Living in a colder climate? Heating costs can spike in the winter.
Consider getting energy-efficient appliances to cut utility expenses. Also, unplug devices when not in use, and choose internet plans that match your actual needs. You don’t necessarily have to pay for the fastest speed available.
Groceries
Food is a necessity, and grocery bills can add up fast. On average, one person spends between $241 and $455 per month on groceries. Again, this varies based on what you eat and where you live.
Keeping a monthly food budget for one person can help cut unnecessary costs and avoid overspending. You can also keep costs under control by meal planning, buying in bulk, shopping at discount stores, using coupons, and sticking to a shopping list.
Transportation
Whether you’re taking the bus or driving your own car, transportation is another monthly expense that sneaks up on you.
If you take public transportation in major metropolitan areas, a monthly pass will likely set you back $70 to $130. And if you own a car, it’s a whole different story. Between gas, insurance, parking, and maintenance, you’re looking at $1,000 or more every month.
So, if you live somewhere with bus and train options, taking public transit may be the best option to free up a lot of cash. To save even more, carpool when you can, walk, or bike short trips, and check for commuter discounts on public transportation.
Insurance
Some landlords require renter’s insurance, especially in apartment complexes or high-risk areas. For $8 to $30 per month, this insurance covers your belongings in case of theft, fire, or other unexpected disasters.
This means if your laptop gets stolen or a burst pipe ruins your furniture, you’re not stuck replacing everything out of pocket.
Additional Costs to Consider
Unexpected costs have a way of creeping up when you least expect them.
Unexpected Repairs
Just because you’re renting doesn’t mean you’re off the hook for every repair. Sure, the landlord handles major issues, but things like clogged drains, a broken light fixture, or a leaky faucet might fall on you.
Ideally, experts recommend saving three to six months’ worth of essential expenses. But even a small emergency fund, like $50 to $100 set aside, can make minor fixes less stressful.
If unexpected expenses hit hard, emergency loans might be an option to cover urgent costs. That way, if something breaks, you’re not scrambling to cover the cost or waiting forever for your landlord to get around to it.
Social and Entertainment Expenses
Living on your own means more freedom, which usually means more social plans. Dinner with friends, weekend getaways, and spontaneous outings can add up fast if you’re not careful.
Financial experts suggest allocating 5% to 10% of your monthly income for fun so you can enjoy life without stressing over your bank account. Learning how to budget for social activities helps you say yes to plans without feeling guilty — or worse, running out of cash before the month is over.
How to Save Money During Moving Out
Yes, moving out comes with a lot of expenses, but if you’re wondering how to save money with a tight budget, a few small changes can add up fast.
Location
We know that location plays a huge role in rent prices. Living right in the heart of a city is convenient, but it also comes with a hefty price tag.
If you’re open to living slightly outside urban centers, like in the suburbs or a less trendy neighborhood, you can often find much lower rent without sacrificing too much on convenience.
Just be sure to factor in transportation costs if you’re moving farther away.
Roommates
Splitting rent and utilities with a roommate instantly cuts your living expenses in half. For example, if rent is $1,500, having a roommate brings your share down to $750. This makes it much easier to afford other essentials.
Plus, you’ll have someone to split household chores and Netflix subscriptions with!
Lease Terms
It never hurts to negotiate your rent. In some markets, landlords are willing to lower rent or waive fees, especially if you’re willing to commit to a longer lease.
If you’re moving into a place that’s been sitting vacant for a while, you might have even more bargaining power.
Financial Assistance and Resources
If the cost of moving out feels way too overwhelming, there are several programs and sources out there that help make housing more affordable. Eligibility criteria and long waiting lists can apply, so these options might not be available quickly to everyone.
Government Assistance Programs
Look into government assistance programs like the Housing Choice Voucher Program (Section 8). This program helps low-income households by covering a portion of their rent. It also makes sure that renters don’t spend more than 30% of their income on housing.
The downside of these programs is that waitlists can be long. If you think you can qualify, it’s best to apply as early as possible.
Non-Profit Organizations
Many non-profits provide rental assistance, emergency funds, or financial counseling to those who need help getting on their feet. For instance, the Salvation Army and the YMCA offer emergency rental assistance to those facing eviction or struggling with relocation costs.
If you need financial counseling or homebuying education, organizations like NeighborWorks and Guardian Angel Settlement Association offer guidance and resources to improve financial stability.
Community-Based Programs
Check whether there are community-based programs available to help with moving costs. For example, the Minnesota Housing Finance Agency’s Housing Trust Fund Program provides temporary rental assistance, including application fees and deposits, for those in need.
FAQ About Moving Out
Is $5,000 Enough to Move Out?
$5,000 may cover basic security deposit, first month’s rent, and moving expenses in some areas. But it might not be enough for everything.
How Much Money Should I Have Saved Before Moving Out?
A good rule of thumb is to have three to six months’ worth of living expenses saved up before moving out. This gives you breathing room in case of unexpected costs, job changes, or emergencies.
What Is the Recommended Percentage of Income to Spend on Rent?
Financial experts recommend keeping rent at or below 30% of your monthly income.
Sources
- HomeBay. “Moving Trends 2024.” HomeBay. Accessed March 11, 2025.
- Legal Clarity. “Can a Landlord Ask for First and Last Month’s Rent Plus Security?” Legal Clarity. Accessed March 11, 2025.
- U.S. Department of Housing and Urban Development. “Housing Choice Voucher Program (Section 8).” HUD. Accessed March 11, 2025.
- Minnesota Housing. “Housing Trust Fund Rental Assistance Program.” Minnesota Housing. Accessed March 11, 2025.