How To Move Out When You Have No Money

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Can't afford to move out of your parents' house? | Be The Budget

With the rising cost of rent these days, it has become more difficult for college graduates and twenty-somethings as a whole to move out of their parents' house. Truthfully, in many cases, the cost of living can be so high that the idea of moving out seems like an impossible feat. So, what are you supposed to do when you can't afford to move out of your parents house?

We've come up with a 5-step plan to help you find the independence you're looking for.

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1. Set A Move-out Timeline

A goal without a timeline is really just a dream. If you want to finally move out, you need to set a move-out date, and stick to it.

Now, be sure to set a reasonable timeline. If you are fresh out of college, paying student loans, and low on savings, you might need a few months to get your finances in order. If you have been living with your parents for awhile, and have a little bit of savings built-up, you might only need a few weeks. That said, you also don't want to set a timeline too far in the distance.

Moving out of your parents' house is an important step in adulthood, so don't put it off too long. Set your timeline, and start taking the necessary steps to achieve your goal.

2. Get On A Tight Budget

I'm going to assume the reason you are living with your parents is because they are charging you very little, or no rent at all. Otherwise, you would be renting a place of your own. So, there is really no excuse for a lack of savings.

I'm going to be blunt with you now. Living with your parents does not mean you get a free ride to spend money on anything you want. In fact, it is the opposite. It is an opportunity to build up savings, and set yourself up for success when living on your own.

That's why, you need to get on a budget right away. If your parents are generous enough to let you live with them, you should cut your personal spending to the bone.

The more expenditures you cut from your budget, the quicker you will be able to move out.

3. Get A Job (Or Increase Your Income)

I'm not really one to sugar coat things, so I'm just going to shoot straight with you. If you are living with your parents and you don't have a job, it's time to get out there and start earning an income — even if it's not the job of your dreams.

There is no shame in getting an interim job when you just need to make an income. In fact, it's the opposite. Getting a job you don't necessarily love in order to earn enough money to move out is an extremely honorable act.

On the other hand, if you have a job, but it doesn't pay enough to support you once you are out on your own, you need to look for ways to increase your income. That might mean taking a second job, or starting a legitimate side hustle. In fact, if starting a side hustle sounds interesting to you, be sure to read our post, 9 Lucrative Freelance Skills You Can Learn Online.

A decent, consistent income is key to living on your own, so go out there and start making some bank.

4. Be Realistic

Living on your own can get expensive. Honestly, depending on where you live, it might actually be out of your price range. And if that's the case, you need to come to terms with the reality of your situation.

When you want to move out but rent is too high for you to live on your own, you have two options: move to a less expensive area, or find yourself a roommate.

I know those might not be ideal solutions (trust me, I've been there), but rent prices aren't just going to magically fall to fit within your budget. You need to be realistic, and embrace the solutions that will work for you.

In some situations, you might need to find a few roommates, or start applying for jobs in different states with a lower cost of living.

5. Stop Making Excuses

In my experience, excuses won't get you anywhere. In fact, they will only hold you back from your true potential. So, rather than making excuses, try to spend your time taking action.

In other words, apply for every job that sounds interesting — whether you think you are qualified or not. At minimum, you will be getting interview experience, and learning to step outside your comfort zone.

If you want to start a side hustle, you don't need a logo, a professionally designed website, or funding. What you need is your first customer. So, go out and bang on every door in your zip code until you find somebody interested in paying for your product or service.

Excuses won't help you move out. So, grab your life by the horns and start taking action.

Things To Know Before You Move Out

Moving out of your parents' house is a monumental moment in anybody's life. But like any new adventure, there are probably a few things that will surprise you. So, before you make the awesome leap, here are a few critical things you should know in order to properly prepare for your new lifestyle.

Setting Your Rent Budget

From one city to the next, the cost of rent can vary greatly. And if you are looking to move out of your parents' house, it's good to have a guideline for how much you can afford. Now, many people will tell you that you should set your rent at 30% of your gross income, but we believe that is too high.

Rather, we suggest you set your monthly rent budget at 25% of your monthly take-home pay. So, if you bring home $3,000 per month after taxes, your rent budget should be no more than $750 a month.

For many people that might seem unrealistic, but this figure leaves room for unexpected expenses, savings, and the ability to spend some money on fun.

Utilities Cost More Than You Think

As you know, rent is not the only expense that comes with living on your own (or with roommates). You are going to need to pay for heat, electricity, water, sewer, trash, air conditioning, and internet — to name the big ones.

So, when you are looking for a place to rent, don't forget about these expenses. Sure, the rent might fit within your budget, but if you underestimate the cost of utilities, you could find yourself in a tough financial situation.

This is just another reason why setting your rent budget at no more than 25% of your take-home pay is a good idea.

Don't Forget Renters Insurance

In most rental situations, you will be required to carry renter's insurance. The owners, or the property management company may even require proof of insurance before you sign your lease. But if they don't, you should absolutely get it anyway.

Renter's insurance is very inexpensive, and it protects you in the event of damage to the property you are renting. It's foolish not to carry renter's insurance, so you should plan for that expense when you are preparing to move out.

Side Note: If you're looking for renters insurance, we highly recommend getting a quote from Liberty Mutual. It takes less than 5 minutes to get an accurate quote using their online quote tool, and at bare minimum, you will get a more accurate idea of how much you can expect to pay.

Click Here To Get A Renters Insurance Quote From Liberty Mutual

Consider Signing A Longer Lease

One of the easiest ways to reduce your rent is to sign a longer lease. This is something you should ask about when you are looking for a place to rent.

Most places will offer the opportunity to sign a 6-month lease or a 12-month lease. However, they may be willing to reduce your rent if you offer to sign an 18-month, or even 24-month lease. If you don't ask, you will never know. It's worth a try.

Final Thoughts

If you think you can't afford to move out of your parents house, you might just need to re-evaluate, and assess your finances. Using the five steps we discussed will help you get your finances in order, and finally take that leap toward independence you've been wanting.

To review, the fives steps are:

Set a move-out timeline
Get on a tight budget
Get a job (or increase your income with a side hustle)
Be Realistic
Stop making excuses

Are you currently living with your parents, and looking to move out? What are some of the obstacles you are running into? Be sure to comment below.

Can't afford to move out of your parents' house? Take these 5 steps to financial independence. | Be The Budget

About The Author

Zach Buchenau is a self-proclaimed personal finance nerd. When he isn't writing about budgeting, getting out of debt, making extra money, and living a frugal life, you can find him building furniture, fly fishing, or developing websites. He is the co-founder of BeTheBudget, and Chipotle's most loyal customer.