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how much save as a student

Every child loves the comfort and the facilities at the parent’s house. However, one may eventually wonder- “How much does it cost to move out of one parent’s house?” It is indeed a big step. This is the reason only 36% of people move out comfortably. It is cumbersome because you must make a few considerations while moving.

One must check everything from finding an affordable rental and a part-time job to planning the moving costs. The blog discusses expenses to analyse as a student before leaving your guardian’s house.

7 Costs to analyse before leaving your parent’s house

Calculating the moving costs is a prime consideration while moving out. According to recent statistics, “It costs £1181 on average for packing and furniture. The removal costs depend upon the distance travelled, the house type, the volume of items, location and moving services.” 

Thus, one must have at least 3 months of savings to move with unexpected cash setbacks, find a job and pay bills comfortably. Apart from moving costs and spare cash what you must consider while leaving your parent’s house:

1)     Compare and save for Rental

The average rent to move out in the UK is £1228/month. It increased by 8.3% in 2024. However, the costs may vary according to the cities of the country you want to move out. For example, London in the UK is the costliest to rent (£2119). At the same time, renting one in the Northeast part of the country costs just (£639/month). Thus, compare your options by analysing parameters like- proximity to university/college, facilities, car fuel consumption, discount, etc.

  • Save for the security deposit

Landlords usually require the tenant to provide a deposit or advance rent for 3 months before renting. According to fact, “Landlords require 5 weeks of rent in advance to provide the rental”. However, the landlord may not ask you to pay 5 weeks’ rent if your annual rent exceeds £50000. If the landlord charges more despite that, contact an advisor for help.

3)     Identify the Utility bills to pay

You must save at least 3 months of utility bills as you move in. It is because costs add up quickly, leaving you without savings. Identify the new gas connection, water, electricity, groceries subscriptions to pay, etc. How much you should save for utility bills depends on several connections, the home size and consumption.

For 2024, the predicted energy bill for a medium-sized household is £2500/ year approximately. It accounts for gas and electricity metres.  However, the government provide £400 as an energy bill subsidy. This drops your expense significantly by £175(monthly) or £2100 yearly.  Under this, tenants paying electricity or energy bills as a part of their rent may qualify for a subsidy. Additionally, households paying for district and communal heating may get the subsidy.

4)     Furniture purchase

One cannot go a day without furniture in the new home. Moreover, transporting furniture from your parent’s home to a new city may prove costly and risky. What if it breaks or encounters a scratch while packaging or transporting? One must take moving insurance to cover the transportation costs. If it’s none of your fault, the moving company covers it for you.  Thus, before planning the furniture purchase, invest in moving insurance. It is important to carry some valuable items comfortably.

Usually, the moving insurance costs 10% of the removal costs. For example, if you pay £1400 for removal costs, you must pay £140 for moving insurance.  So, it is not much to safeguard your belongings and relax peacefully.

Alternatively, if you plan to furnish your new home altogether, save £2000 (minimum). It is for the 1-bedroom apartment.  You can also check out used furniture options on eBay and other websites.

5)     An emergency fund for surprise costs

An emergency fund is helpful to counter immediate needs after a severe financial downfall. You may need one to survive in unemployment, business loss, seeking jobs, etc. Ideally, you must save at least to cover 6 months of unexpected costs post-move. You may need one to finance- urgent medical costs, car repair, home repair, admission fees, utilities, etc.

Your emergency savings should be at least £6,000 before moving out. This implies that even if you save £1000 per month, you can easily save £ 6,000. Sometimes, individuals struggle to save for emergency funds. This may be due to low household income or increased liabilities. Here, save at least £3000 before moving.

If you encounter an emergency requiring £5000, check external facilities. If you have limited or poor credit, you may get an online bad credit loan with guaranteed acceptance in the country. However, you must have a regular income to qualify. It is ideal for individuals with no or low credit history. You may get guaranteed approval by revealing proof of authentic income (part-time or other).

6)     Wi-Fi and cable subscription

It is one of the most important expenses to incur for students. To ensure a comfortable education, having internet access is essential. Analyse the best and most affordable Wi-Fi provider in your area. If you lack an idea, enquire from your new neighbours.

According to a fact, “an average person spends £30/month on Wi-Fi”. This includes broadband and mobile data costs. However, the costs may rise significantly according to internet usage. The more GB you use, the more you pay. To save costs, you can split the broadband bill among your roommates. It would then prove affordable for you.

7)     Transportation costs unless you get a job

The costs may vary for the national and international students moving to the UK premises. For example, as an international student, you must save around £1300-£1400/ month for transportation. Individuals without a job struggle the most after moving. Thus, save for at least 5 months of transportation costs (1400*5= £7000) for transportation alone before moving. It will help you avoid tapping your new savings.

What’s the total amount you must save before moving as a student?

The table briefs the expenses you must plan before leaving your parent’s house. You must have at least the below amount in your personal bank account before moving:

Rent2100 (approx.)
Security deposit10% of the rental fee (20000 at least 2000)
Emergency savings6000
Wi-fi30/month, 390/year

*It is the total amount that you must save according to average costs in the country. The costs may differ according to your budget and lifestyle preferences.

Bottom line

Thus, analysing different costs before moving is important. It helps you analyse your budget and improve flexibility accordingly. Some crucial aspects you must save for include- rent, deposit, emergency fund, moving insurance costs, and furniture. It helps one plan a smooth and financially supervised move.

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