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WalletPrep worksheet · Life events

How much money do you need to move out for the first time?

Name ____________________ Date __________

Key ideas

  1. Move-in cash is often 2 to 3 times rent. First month, deposit, fees, moving and basics. In the example, Jordan's $1,100 rent needs $3,100 upfront.
  2. Add a $1,000 buffer on top. Your first weeks bring surprise costs. Jordan's goal before moving is $3,100 + $1,000 = $4,100.
  3. Budget the monthly bills before you sign. Rent is only one line. Add utilities, internet, groceries, renters insurance, transport and phone.

Vocabulary

Security deposit
Money a landlord holds when you sign a lease, to cover damage or unpaid rent, and returns when you move out, minus allowed deductions.
Emergency fund
Cash set aside only for surprises like a job loss, a car repair or a medical bill. A common goal is 3 to 6 months of essential costs.
Tenant screening report
A report landlords use to decide whether to rent to you. It can include your credit, rental history and eviction records.
Take-home pay
The money that actually lands in your bank account after taxes and payroll deductions come out of your paycheck.
Credit report
A record of your credit accounts, payments, balances and some public records, kept by each of the three credit bureaus.
Special Enrollment Period
A window outside yearly open enrollment when you can sign up for or change health insurance because of a qualifying life event, like losing coverage or having a baby.

Work it out

Jordan, 23, earns $48,000 a year and found a one-bedroom for $1,100 a month. The landlord wants first month's rent and a one-month deposit at signing.

  1. First month's rent
  2. Security deposit
  3. Application fee
  4. Truck and helpers
  5. Utility setup
  6. Bed and basics
  7. Move-in cash
  8. Starter buffer
  9. Goal before moving

Check yourself

  1. Rent is $1,300. The landlord wants first month, last month and a deposit equal to one month. How much rent and deposit is due at signing?

    • A. $1,300
    • B. $2,600
    • C. $3,900
    • D. $5,200

  2. Using the 30% guideline, what rent fits a $54,000 yearly salary?

    • A. About $1,350
    • B. About $1,620
    • C. About $1,800

  3. A landlord rejects you because of a tenant screening report. What can you do?

    • A. Nothing, the report is final
    • B. Ask for a free copy within 60 days and dispute errors
    • C. Pay a fee to see the report

Your turn

Pick a target rent and add up your move-in list: first month, deposit, fees, moving and basics, plus $1,000. Subtract what you have saved, divide by the months until your move, and set that monthly transfer.

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Answer key

How much money do you need to move out for the first time?

Work it out

  1. First month's rent$1,100
  2. Security deposit$1,100
  3. Application fee$50
  4. Truck and helpers$200
  5. Utility setup$100
  6. Bed and basics$550
  7. Move-in cash= $3,100
  8. Starter buffer$1,000
  9. Goal before moving= $4,100
  1. Rent fits the 30% guideline: $48,000 ÷ 12 = $4,000 a month, and $4,000 × 0.30 = $1,200, above Jordan's $1,100.
  2. Move-in costs total $3,100, about 2.8 times the rent. Adding a $1,000 buffer makes the goal $4,100.
  3. Jordan has $1,640 saved, so $4,100 − $1,640 = $2,460 is left. Saving $410 a month gets there in $2,460 ÷ $410 = 6 months.

Check yourself

  1. C. $3,900 $1,300 + $1,300 + $1,300 = $3,900, before fees, moving and furniture.
  2. A. About $1,350 $54,000 ÷ 12 = $4,500 a month, and $4,500 × 0.30 = $1,350.
  3. B. Ask for a free copy within 60 days and dispute errors Federal law requires the landlord to tell you a report was used, and you can get a free copy if you ask within 60 days.