Set targets for minimum savings and maximum rental fees.
One of the most obvious ways to determine your financial readiness to move is to understand how much money you will need and what expenses you can afford. However, some people ignore this critical step in the heat of excitement at the prospect of moving.
You can find many formulas on the Web to determine the maximum amount of rent you can afford, but there are two simple options — divide the total monthly income by three or the annual income by forty (for calculation purposes, take the salary before taxes).
There are even more options for calculating the amount of savings that will be required for the move, which depends on the prevailing rental rates and many other factors. One formula assumes a direct relationship between higher wages and rent, along with the cost of moving, basic necessities, and so on, so it recommends setting aside about 10% of income.
Make it a habit to save money.
Any normal financial adviser will recommend that you start saving right now, even if it is a small amount from each salary, as this practice develops a good habit of frugality and literally brings income in the long term.
With a clear goal, it will be easier for you to save, but there are also many other ways that will help you do this.
Start saving money not just for moving, but in order to create an emergency reserve, which may be required when you already move. It’s a good idea to create a reserve that will allow you to cover your expenses in 3-6 months (use your budget as a reference).
Reduce the expenditure part of the budget.
Once you’ve set your monthly budget and the amount you need to set aside for moving, find a way to cut down on excessive spending.
Break down expenses by importance into important ones (for example, groceries, utilities, transportation) and minor ones (for example, going to a cafe or paying for an additional package of sports cable TV channels, buying designer clothes and concert tickets). Eliminate waste, reduce secondary spending, and try to find creative ways to reduce important expenses.
We recommend reducing expenses, including shopping at sales and second-hand stores, replacing paid hobbies and leisure activities with free alternatives (for example, running and visiting the library) , and avoiding impulsive spending. All this is possible if you make a list of necessary purchases every time and wait 48 hours before spending money on minor things.
You can only decide to temporarily reduce your expenses in order to save on moving. However, for the sake of your own financial well-being, it will also not be superfluous to make at least some items of expenditure more modest on a permanent basis.
Temporarily find sources of additional income.
If you are looking forward to moving, a second (or even third) job will help you earn the money you need faster. This will be useful in the short term, but do not expect that you will be able to endure an exorbitant workload after moving for the sake of maintaining a rented apartment.
One way to temporarily increase earnings is to work overtime. Other options for earning money can be part-time work in the neighborhood, including mowing lawns, finishing work, working as a nurse or nanny, a promoter in a life-size doll costume in a busy place, demonstrating your musical talents in street performances and doing additional work around the parents’ house for a fee (do not consider such earnings as an “increase” to pocket money, treat this money as an investment in a future independent life).
Sell unnecessary items before moving.
It’s time to review your clothes, your collection of music and movies, as well as old junk in the room like a mini-refrigerator or a tile, for which some people will be willing to pay a couple or even a few hundred rubles.
There are two advantages to selling non-essential items: you get money in the piggy bank and save money (at least time and energy) on the move itself, reducing the amount of things that you will need to take with you when moving.
Arrange a street sale of things, sell them through online ads, or take things to a second-hand or thrift store — use the ways available to you to get rid of things to lighten your own luggage and fill your wallet.
Honestly answer yourself, will you ever listen to that CD or wear that flannel shirt? If you are able to do without all this now, then you will do without it after the move.
Give to charity everything that you can’t sell, because you’ve already decided that you don’t need these things, so create a reason to start treating yourself a little better for helping those in need.
