Here are a few things to consider: Income vs. Rent: A good rule of thumb is to keep rent at or below 30% of your income. With a $45K salary, that would be around $1125/month for rent. Since rent in your area is between $1300--$2000, it might be tight, especially if you're leaning toward the higher end of that range.
Generally, you should aim to save at least 3-6 months of living expenses before moving out, which typically ranges from $3,000 to $10,000 for most situations. The recommended savings can be broken down into three main categories: upfront costs, emergency fund, and ongoing expenses buffer.
To ensure that you're financially prepared for this significant transition, a common rule of thumb says you should save on average between $5,000 and $12,000 before moving out, depending on where you are moving to and the cost of living.
You Have Enough Income to Pay Rent
If the rental you have your eye on costs $1,000 per month, you should have at least $3,000 in monthly income to comfortably pay that rent without overstretching your finances.
Those will become part of your budget. The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.
On a tight budget, aim to save at least three months' worth of living expenses. This should cover rent, utilities, food, and basic necessities, plus additional funds for security deposits and moving costs.
Consider Getting a Roommate
If it's too hard to afford rent all on your own, you can think about having a roommate to help share the expenses with. Having a roommate can also make moving out for the first time feel less lonely.
How much should you save up for an apartment? As a general rule, you should have at least three times your rent saved before moving into a new apartment. That means that if you're looking to rent an apartment that's $1,200 per month, you should have at least $3,600 saved for rent.
To prepare for income shocks, many experts suggest keeping enough money in your emergency fund to cover 3 to 6 months' worth of living expenses. So if you spend $5,000 per month, your first emergency fund savings milestone should be $2,500 to cover spending shocks.
By the time you're 25, you probably have accrued at least a few years in the workforce, so you may be starting to think seriously about saving money. But saving might still be a challenge if you're earning an entry-level salary or you have significant student loan debt. By age 25, you should have saved about $20,000.
1. Is $5,000 enough to move out? It depends on your location and the cost of living there. In some areas, $5,000 may cover initial moving expenses and a few months of rent, but might not be sufficient in more expensive cities.
The average age when people move out of their parent's home is between 24 and 27. This makes a lot of sense – it's after many people have completed college or secondary studies, and around the time when most people get married and/or are in a long-term relationship with a serious partner.
Use the 50/30/20 rule.
You take your after tax income and divide it into three categories—50% to needs 30% to wants, and 20% to long-term savings.
A popular rule of thumb says your income should be around 3 times your rent. So, if you're looking for a place that costs $1,000 per month, you may need to earn at least $3,000 per month.
40x Rent Rule
To find maximum rent using this rule, divide the household's annual gross income by 40. For example, a household that earns $80,000 per year can afford a maximum monthly rent of $2,000 (80,000 ÷ 40 = 2,000).
A popular budgeting method is the 50/30/20 rule: spend 50% of your take-home pay on needs, including rent. Ideally, you should keep rent under 30% of your income. However, this can vary by person.
Lower-income individuals and families can use relocation assistance grants to partially relieve some of the financial burden of moving. These grants may be offered through private nonprofit organizations as well as through federally funded programs.
Breakups are tough and when financial fears are keeping you stuck, moving on might involve some short-term compromises. Talk through your options with your partner/ex, as well as trusted friends and relatives if you can – as well as helping you get clear on things, they may be able to offer helpful advice or solutions.
Ideally, you'll move out when: You feel financially ready to pay rent and pay your bills on time (more on that below). You feel like you've made as much progress on your personal growth as you can, and you're ready to tackle new challenges and responsibilities.
Aim to save up at least your upfront costs and three months of rent, plus expenses, before leaving the nest.
In short, no. Having $20k saved up to move out is ideal, it gives you extra cash for deposits and whatever else you might need. However, you cannot intend to live on $20,000. To give you a different idea about how much that is, that averages about $9 an hour, which is hard to live on.