Moving On, Moving Out

Are you ready to strike out on your own? For most of us, true independence means moving out of our parents' place and into our own. That may be an efficiency or one-bedroom apartment you have all to yourself, or a place you share with roommates. Whatever you choose, it won't be as cheap as living at home.

Here are a few suggestions for figuring out your new living expenses:  

Rent: This will be a big chunk of your budget, but how big depends on factors like apartment size, if you’re  living alone or with roommates and the type of neighborhood you want to live in.

Security deposit: This is a sum your landlord gets up front to cover damages you may cause during your tenancy. It's refundable if no damage occurs. Some landlords don't require a security deposit, but instead ask you to pay the final month's rent before you move in.

Utilities: Does your landlord pay gas, electricity, trash, and water, or are you responsible for these expenses? Your landlord or local utility companies can give you a good idea of what average utility and service costs have been for past tenants. Count on paying your own internet and cable.

Utilities deposits and hookup charges: Utility companies assess a deposit to assure you don't skip out and leave bills unpaid. Check when and how you get the deposit back. Hookup charges are fees for connecting you to the service and are nonrefundable.

If you’re like most people you will be furnishing your first place with whatever you can get your hands on. You’ll also join the time honored exchange of asking friends to help you move in exchange for pizzas, cold beverages and the promise to help them move.

As you see, renting a place costs extra cash right at the start. Plus, you have ongoing monthly obligations. Keep the latter to one-third or less of your monthly income, or your new haven of independence may feel like a burden.

If you need help in sizing up your budget or a modest loan to get started in your new abode, talk to a financial representative at your Credit Union today.

Copyright 2008 Credit Union National Association, Inc. Information subject to change without notice. For use with members of a single credit union. All other rights reserved.