Can You Afford to Move to a New Apartment?
There are a lot of questions you have to ask yourself when you’re considering moving, chief among them: how much is it going to cost you? Moving is no small expense—even if you’ve got enough set aside for the first month’s rent and security deposit at a new place you still have to find a way to pay for things like packing supplies and a rental truck or professional moving company. Figuring out whether you can afford to move—and if so, what your moving budget is—is the first thing you should be thinking about when planning a relocation, and definitely needs to be worked out before you sign a new lease.
Renters account for about 37 percent of U.S. households—that’s about 44 million households in total. And they are increasingly stuck in a bit of a bind when it comes to relocating. According to census data from 2005 to 2016, nearly half of renters spend 30 percent or more of their income on rent, and one in four are spending 50 percent or more of their income on rent. That doesn’t leave a ton of money left over for moving, a task that, for many, is warranted by rapidly rising rent prices.
So how do you know if you can afford to move to a new apartment? It takes a bit of planning and budgeting, but if you give yourself enough time to dive into the details (and save up, if necessary) you should be able to swing it. Here’s how to get started.
Step one: Take a look at your current financial situation
Before you think about how much you have available to spend on a move, you need to take a good look at your current expenses and how much you are spending on average every month. This will give you an idea of how much you typically have on hand for an irregular expense like a move, as well as give you insight into some areas that you may be able to cut back on if you need to budget and save before you can relocate.
Make sure to factor in all the different variables that contribute to your current expenses. These may include:
- Current monthly rent payment
- Current monthly utility costs and other bills
- Debt
- Monthly memberships
- Food expenses
- Medication expenses
- Miscellaneous expenditures, like clothing and entertainment
You can find a breakdown of a lot of this information on your bank’s app, or you can track them on a website like Mint or EveryDollar. Keep in mind though that those websites are most effective at tracking expenses over time. If you need to know the numbers right away, you’ll have to do the math yourself.
After evaluating your expenses, come up with your spend to save ratio. How much do you have left every month after everything else is paid for? Once you know what you’re working with, you can move on to the next step.
Step two: Figure out how much a move will cost you
To determine whether you can afford to move, you’ll need to know just how much it will set you back and whether you’ll be able to make it work. The most important cost to factor in here is the cost of transporting your belongings. Our free moving cost calculator is a good place to start. Our packing and moving box calculator can then help you figure out how much you’ll need in terms of supplies.
Keep in mind that there are plenty of ways to cut moving costs if you need to, including gathering free packing supplies and going the DIY route instead of hiring professionals. Editing down how much you own is a good way to slash costs too, and as a bonus, you can make some extra cash by selling the things you don’t want.
In addition to the costs directly related to moving, you’ll also have to make sure you’ll have enough to cover costs for a new apartment before you know if you can afford to move. Depending on where you live and who you’re renting through, this may include first and last month’s rent and/or a security deposit. You can put the supply and transport expenses on a credit card (as long as you know you can pay them off in a reasonable amount of time), but the fees associated with securing a new apartment will almost certainly need to be paid through certified check—i.e. directly out of your bank account—so you’ll need that money on hand before you can move.
Step three: Crunch the numbers to determine whether you can afford to move
Once you know how much you have to spare every month and how much a move will probably cost you, you should have a pretty good idea about whether you’ll be able to afford to move to a new apartment. If it’s looking tight, start focusing on budgeting so that you can save up a bit more of a cushion. Saving money isn’t always easy, but you’ll be surprised what a difference it can make setting aside a little bit at a time. If you can, create a moving fund and start putting in money periodically, even just filling it up with your extra change at the end of each week. Look for ways to cut costs on expenses, too, perhaps by getting thriftier at the grocery store or opting out of cable.
If you’ve gotten priced out of your current home due to rising rents and have no choice but to move, focus on finding a new apartment that will cost you less per month than your current unit, even if it means taking on a few roommates. That should leave you with a little bit extra to devote toward the move itself.
Moving is always going to have a major impact on your finances. Do get creative with savings and make it work if you can, but don’t compromise your long-term financial health in order to move if it’s not really necessary to do so. If you have no other choice, look for non-profit organizations in your area that might be able to provide you with financial assistance. With time, you should be able to figure out how to afford to move in a way that makes sense for your budget and your situation.