moving out--how much $$$ (long)

[maxiesmom]

First, I need to share my deepest, darkest, secret with you all. I have lived at home with my parents for quite a few years now. I was on my own for a while, and then had to move home when my roommates left town. And here I have stayed. It was just too easy to do.

Things have changed, and I have come to realize that I am not doing myself or my parents any favors by staying here. They are always coming to me for money, so anything I manage to put into savings goes bye-bye. And just a few months ago I took out a loan on my 401k in order to pay 2 years back taxes on the house. So I really need to move out.

I have a roommate lined up, and we have agreed on when to move. Now it isn't until September at the soonest. I have for the last couple of months been paying only the bare minimum on my credit cards, and putting whatever I can into a savings account. I have $1350 in an ING account, and a $1000 in my regular savings as an emergency fund.

So my main question is, how much should I sock away in savings prior to the move? I would like to be able to start throwing more at my credit cards, and I plan on paying off my Sears bill(that my parent's put some house payments on) with my tax return. That will leave me with 2 visas and 1 mastercard bill each month. I am doing my best to follow the Dave Ramsey plan, but I haven't been able to convince myself to cut the cards up.

The only furniture I own is my bedroom set. I have been collecting house stuff--blender, mixer, dishes--for a while, and have a pretty good sized pile.

So what kind of goal should I set for my move out fund? When should I start attacking my credit card debt again? Thanks for reading!

 

[Aliceacc]

I am SO not the one to be giving financial advice.

But credit card rates are HIGH, and savings rates are LOW. To me it makes more sense to knock down the credit card debt. Or at least to make it the higher of the 2 priorities. Maybe save 20% of your "extra" income and hit the credit cards with the remaining 80% And hit one card entirely before you hit the next-- it will give you a feeling of accomplishment, and probably make more sense financially.

As to those credit cards you don't want to cut up, how about this: Cut up all but one-- your emergency card.

Then fill a tupperware container with water, put the card into a baggie, and insert the card, and freeze it.

Even if the magnetic strip is damaged, the card can still be read manually. It will just be a whole lot harder to use for spontaneous shopping.

Best wishes!!

 

[missj1975]

You have a lot more saved then I did when I first moved out. You have a good start.

My advice, since you aren't moving until September you should do your best to pay off your credit cards before you move into your rental. Honestly I wouldn't worry about putting more into your savings account until your credit cards are paid off. I know not everyone agrees with that opinion but I think it is silly to put money into a savings account when you could be using that money to pay off a credit card, unless it is a zero interest card. I don't like incurring credit card interest when it isn't necessary.

Talk to your soon to be roommate about what stuff she is contributing to the household (that way you cut down on doubles of stuff). It sounds like you have the kitchen covered. Now you have to worry about a couch, tv, entertainment center, and dining room table & chairs. Are you happy with used furniture or do you have to have everything new? If you are happy with used, then start checking out yards sales when the weather gets nicer. Mention to people that you are moving. I mentioned to my coworkers that I was moving out for the first time and they just showered me with used stuff. My coworkers gave me a two couches, dishes, an entertainment center, coffee table, etc. I might have been lucky but it could work for you. The only thing I ended up buying was curtains.

Have you told your parents that you are moving out? It sounds like they really depend on you financially. What happens when you move out and they come to you for more money? Are you going to be able to say no?

Are you moving into an apartment or a rental house? I have done both so I can offer different advice for both.

 

[aynt79]

If I were you I would try to figure out what my move out expenses are going to be and save that amount 1st. I would probably consider the $2350 (or most of it) you already have as an "emergency" fund, it could come in handy if an unexpected moving/living expense comes that you weren't expecting plus any other emergencies. Once you know you have enough to move out, then attack the credit cards.

For move expenses: 1st month rent plus deposit, if you are moving into an apartment complex they may charge an application or background/credit check fee, possible deposits for electricity, cable, water, phone or heating (if that's separate), moving truck if you don't have a big enough vehicle for the furniture you do have, renter's insurance is fairly cheap and a good idea, cleaning supplies, stocking the fridge/cupboards.

For the cleaning stuff and non-perishable food (like condiments, baking supplies, etc), I would keep my eyes open starting now for any really good sales or clearance prices. It won't seem too bad if you buy a few things each month, versus full price for everything all at once. Same with any household items. My local Targets have various kitchen items on clearance now. If you like that style, keep an eye out for when Target starts clearancing their Global Bazaar line. A couple of years ago I got a lamp, end table, chest, bedspread and throw pillows for 90% off. Craigslist can be an good place to get cheap or many times free furniture, if you are able to pick it up.

 

[SandraVB79]

OP, I am somewhat in the same position as you (although the reasons I am moving are different).

I have made an Excel-sheet. For every room in my apartment (I won't have a roommate, so I will have to pay for everything myself) I wrote (and still write) down every single item I can think of I will need in that room. Yes, I did include stupid things like a creamer and the like
Next column has the estimate cost. Next column has the real cost (once I buy the item). You could add a column that says who will buy the item, you or roommate (no need for two blenders, I would think).

This way you:
1. have an estimate on how much the whole deal will cost you
2. you know what you already have and still need
3. in the end you'll know what it has costed you. I'd like to know that, and I was quite happy that my brother could tell me what it had cost him to move out.
4. you can prioritize purchases (based on the budget and the estimated cost)

It seems to work for me.