It’s a question that has been asked since the dawn of time, or at least since the dawn of adulthood: is $5,000 enough to move out of your parent’s house? Okay, maybe that’s a bit of a stretch, but hey, it’s a question asked by many people – myself included at one point.
The simple answer is no, $5,000 is not enough to move out of your parent’s house. However, that doesn’t mean that it’s impossible to do so. It just means that you’ll have to be a bit more creative and thrifty to make it work.
Here are a few tips to help you make the most of your money (The Financial Geek’s tagline) and get out on your own with just $5,000 saved up.
5 Tips for Moving out of your Parent’s House With Only $5000
1. Get Creative with Your Living Situation
There are a lot of options when it comes to finding a place to live, and you don’t necessarily have to go the traditional route. For example, you could look into renting a room in someone elses house or even couch surfing for a while. Several websites can help you find affordable housing options, such as Airbnb, Facebook or Craigslist.
2. Get Roommates
If you’re not opposed to living with someone else, getting roommates is a great way to split the cost of rent and other expenses. Not to mention, it can be nice to have someone else around to help with the bills.
Just make sure you find someone you can trust and who is responsible with money. I used to live with some of my best friends for a few years after college, not only were they great company, but it also drastically cut down on our rent costs.
3. Create a Budget
This one is key, no matter how much money you have to work with. Creating a budget will help you figure out exactly how much money you have to spend on rent, food, utilities, etc.
But you can’t just make a budget, you have to stick to it! Here is an article I wrote a few months back talking about my top 8 budgeting tips.
4. Make a Plan
You can’t just up and move out without any sort of plan in place. You need to figure out where you’re going to live, how you’re going to get there, and what you’re going to do once you’re there. Otherwise, you’re just setting yourself up for failure.
You know what they say failing to prepare is preparing to fail!
5. Be Prepared For The Worst
Let’s be honest, things don’t always go according to plan, but that’s okay!
Just be prepared for the possibility that things might not work out the way you wanted them to and make sue you have a backup plan in place and know where you can go if things don’t work out.
At the end of the day, whether or not you can move out with only $5,000 is up to you. It’s possible, but it’s not going to be easy. Just remember to be creative, thrifty, and most importantly, responsible.
So as you can tell, the answer I’m giving here is unfortunately not a simple one. It depends on a variety of factors, from the cost of living in your area to your financial situation. And while you might be feeling some financial pressure to make the move, we’re here to tell you that it is possible to do it on a shoestring budget.
The Pros of Moving Out on Your Own with $5,000
1. You’ll Learn How To Be Resourceful.
When you have limited funds, you’ll learn how to be resourceful with your money. You’ll become a master of budgeting and learn how to efficiently use what little money you have. This is a valuable skill that will serve you well throughout your life.
2. You’ll Appreciate Your Parents More.
Let’s be honest, living at home with your parents can be tough.
There are a lot of rules and expectations that can often make you feel like you’re still a child. But when you live on your own, you’ll start to appreciate all the things your parents do for you (even if they don’t always do them perfectly). Suddenly, doing your laundry doesn’t seem so bad when you realize that someone else is taking care of all the bills and cooking most of your meals.
Related Financial Geek Article: Do You Need an Emergency Fund If You Live with Your Parents?
3. You’ll Meet New People.
When you move out on your own, you’ll have the opportunity to meet new people—both in terms of neighbour’s and friends. And let’s be honest, it’s always great to expand your social circle and meet new people who share similar interests as you.
Even if you don’t become besties with everyone, it’s still nice to have friendly faces around when you need them (for example, when you’re locked out of your apartment or need help moving furniture).
4. You’ll Get to Decorate However You Want.
One of the best parts about moving out on your own is getting to design and decorate your space however you want.
No more floral wallpaper in the bathroom or ugly paintings in the living room courtesy of your taste-challenged parents!
When you live on your own, you get to decide what goes in your home—and that includes everything from the furniture to the art on the walls. It’s like permitting yourself to play interior designer.
5. You’ll Gain Independence — and Confidence.
Last but not least, moving out on your own will help you gain independence and confidence.
Living away from home can be scary at times but it’s also really empowering—especially when you manage everything yourself (with maybe a little help from friends and family).
Over time, this experience will help build character and enable you to handle anything that life throws your way—including future moves (should you decide to upgrade to a bigger place further down the road).
So there you have it folks—five reasons why you should move out on your own with just $5,000!
Of course, this decision isn’t right for everyone but if you’re feeling ready for some independence, then we say go for it! Just remember to budget carefully, be resourceful, and most importantly, enjoy this new chapter in your life.
The Cons of Moving Out on Your Own with $5,000
Now, before you start packing your bags and loading up the moving truck, there’s something you should know: moving out on your own could also be a really bad idea…if you only have $5,000.
Here are 4 reasons why:
1. Rent Can Be Really Expensive
Unless you’re lucky enough to live in a small town or city with relatively affordable rent, chances are you’re not going to be able to find a place to live that’s anywhere close to being within your budget.
In Toronto, Canada for example, the average monthly rent for a one-bedroom apartment is almost $2,000. And that’s not even including utilities! If you only have $5,000 and you’re not working, it’ll be pretty much impossible to afford an apartment like that on your own.
2. You’ll Never Be Able to Save Any Money.
One of the worst things about being young and having very little money is that it feels like you’re constantly treading water just to keep your hair dry.
Every time you get paid, it feels like all of your hard-earned cash goes straight towards bills and leaving very little (if any) left over to save. And if you can’t save any money, how are you ever going to be able to afford things like travel, a down payment on a house, or retirement?
Trust me, as I talk about in my article here, there are many, many consequences of not being able to save money, so let’s avoid that at all costs.
3. You’ll Be Eating Ramen Noodles Every Day For Dinner.
Let’s face it: if you’re barely scraping by on $5,000 a year, chances are you’re not going to be able to afford to eat out very often (or at all). That means saying goodbye to trips to your favourite restaurants and hello to nights spent eating Ramen noodles in front of the TV.
4. You’ll Have Zero Dollars Left Over For Fun & Leisure.
Living paycheque to paycheque is no way to live, especially when you’re young and should be out enjoying life! If all of your money is going towards rent and bills, that leaves very little room (if any) in your budget for fun and (sometimes extravagant) experiences.
So there you have it, folks. Is it possible to move out on your own with just $5,000? Technically, yes. But is it a good idea? Not really, in my opinion.
Unless you’re okay with eating ramen noodles every day for dinner and never having any fun, we suggest you hold off on moving out until you’ve saved up a little bit more money. Trust us, it’ll be worth it in the long run!
And anyway, what’s the big rush?
Thanks for reading,