Moving On, Moving Out

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. Just how much will it cost? Here's what to consider:

Rent. This will be a big chunk of your budget. How big depends on what situation you choose. But rent is only part of the picture.

Security deposit. This is a sum your landlord gets upfront to cover damages you 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 heat, electricity, and water? Or are you responsible for these expenses? Your landlord or local utility companies can tell you how much past bills have been. Count on paying your own phone 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.

And we haven't even talked about furnishings, moving expenses, and rental insurance. They easily can add hundreds of dollars to the tab.

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.