Before you start apartment hunting, here is one important step: getting your savings in order. I encourage saving for apartments before renting. I call it the freedom fund. It is an insurance in case you lose your source of income a few months being out there on your own. I briefly mentioned it on Moving Out Of Your Parents’ House episode.
Whether you are working a 9-to-5 or juggling school and part-time jobs, saving up to move out offers security. Not just security, but a peace of mind on the anxieties of not knowing whether you could make it out there on your own. This is in case of a sudden disruption of your monthly income or a job loss.
So today, I am exploring this subject further with you.
On this episode of the WeeklyBagel podcast, I dived deeply into how to save smarter and choose the right bank account. This is because both will help you meet your moving-out goal when you plan it well. I explore how much money you need before moving out and the kind of bank account that will help you accomplish this goal.
So, how do you go about saving to move out?
Firstly, you need a job. Not just any job, one which pays enough for you to cover your current expenses and still put some money aside. This is where the difficulty starts.
If you already have rental expenses, it becomes hard to do. This is especially when you are making a few dollars short of the minimum wage. I recommend in this situation to negotiate with whoever you are living with to help you achieve this goal.
What do I mean, my dear reader?
You could negotiate with your parents to have you pay utility bills, while you save to move out. If it is a roommate you have right now, you could start budgeting for your next apartment by eliminating current expenses. It will free up more money for you to put aside monthly towards your new place.
Before I start though, I would like to talk about what kind of jobs will pay well enough without experience to save for an apartment.
What Jobs Pay Well Without College Degree?
On Episode 4- What Kind Of Jobs You Need To Get A Place Of Your Own, I listed some industries and the jobs in them which will pay you at least $18 per hour. This is without a college degree or experience. If you listen to the episode, I mentioned how some of the industries and the jobs will offer to train you.
This is with the hope that you will work for a while after your training is over. There are many such jobs out there. These industries include:
- Medical/health care fields.
- Factory/Industrial
- Logistics/Transportation
- Financial sector
- Hospitality
- IT
- Technician.
I know- it may seem these require college degrees, but they do not. Some of them will train you. But, that is only when you are willing to spare a few weeks to pick the skills. Simply put, staying committed.
Below is a table with a list of some jobs examples and their ranges.
| Job Title | Wage range |
|---|---|
| Warehouse worker | $17/hr to $23/hr |
| Medical assistant | $16/hr to $24/hr |
| Delivery driver to Amazon, UPS or Fedex | $18/hr to $28/hr |
| Patient Care Tech | $16/hr to $20/hr |
| Bank Teller | $17/hr to $21/hr |
| Electrician/Plumber Apprentice | $18/hr to $23/hr |
| Cable/Internet Installer or rep | $18 to $24/hr |
| Childcare worker | $15/hr to $19/hr |
| Entry level IT positions | $18/hr to $26/hr |
Any of these jobs could help you in saving up to move out of your parents’ house or roommate’s. There are many more. I encourage to go on Indeed.com to use their website to scout for jobs in industries you are interested in.
When you find the job, use the U.S Bureau of Labor Statistics website to look for the average pay in the industry or job. It will help you negotiate a good salary for yourself. I use it whenever I am about to interview for a new job. You will thank me later.
Which Bank Account Will Help You Meet Your Savings Goals?
Now you have gotten a job, the next thing is choosing the right bank for your savings plan. This is where I advocate using high interest savings accounts as opposed to the traditional savings accounts. Do you know why, good reader?
Well, the national average interest rate of 0.45% which traditional savings accounts have, will not help us save enough money to move out. On the other hand, high interest savings accounts like Axos bank with its 4.51% or SOFI with its 3.80% will reward for savings.
Here is my logic on this.
Let us say you manage to save $4000 by putting aside $400 monthly for 10 months. A traditional interest rate of 0.45% will only give you $4018 at the end of your saving goal. Online banks like SOFI or Axos bank get $4152 and $4180.4 respectfully.
You do not have to use these ones. They are just the ones I use for my long-term and short-term savings. There are many legitimate online banks with competitive interest rates on savings. You can find the best one for yourself.
When saving to move out, I highly encourage you to use high interest savings accounts to save for moving out. It will cost you nothing at all. A majority of the online banks offering these types of savings accounts do not charge to maintain an account with them. Some may require a minimum deposit to qualify for high interest rate though.
I discussed this in great detail on this episode. So, grab a bagel and a hot cup of coffee. I want you comfortable, while you listen to this one.
After listening to this episode, you will know the best savings accounts to use to save for moving out. If you want to know how I saved for my first apartment, listen to How to start saving for an apartment episode. I talked about the tips I used to raise money in the one of the bank accounts I mentioned on this episode.
How To Move Out Of Your Parents House – Episode 2