Your Mom Still Folds Your Underwear???

So you're living with yo' mama, huh? Don't worry, many of your peers are. When I graduated from college, I lived at home with my parents for several months before moving out. I felt like a kid in many ways when living at home but I was able to save a lot of money - and get some good ole home cookin' at the same time!

Many people want to move out but they are unsure of the costs associated with doing so. Let's say you decide to get an apartment. A decent one-bedroom apartment in New Castle County can run anywhere between $600 - $850 a month. Some include heat and hot water as part of the deal, some don't. If they don't, you'll have to budget somewhere between $50-$100 for those utilities each month. Some don't have washers and dryers so you'll have to budget laundry fees, too. Your electric bills will vary by month; those in the summer months can be $100 or more depending on how often you run the A/C. I recommend using fans on the not-so-excruciatingly-hot days. Oh yeah, if you don't have credit history with the electric company you may have to pay close to $200 as a security deposit! Don't worry, you'll get this back in about a year....

Most apartment complexes require a security deposit plus at least one month's rent before you even move in. Sometimes it's the first and last month's rents. You'll also need renter's insurance (mandatory in most cases), which is at least $10 per month depending on the insurance company you use and the type of coverage you choose. All these fees and you haven't even moved in yet!

Let's say you find a one-bedroom apartment with heat and hot water included for $750 per month. Suppose your average electric bill each month is $50. In this example, you must pay a security deposit of $500 and first month's rent before moving in. Renter's insurance will cost $120 a year, too. Let's say you pay this upfront. Before you move in, you must pay $500 + $750 + $120 = $1,370. Your electric bill for the first month would be $200 + $50 = $250. Each subsequent month would yield fees of around $800 (rent + electric).

So, you paid $1,370 to move in, you paid $250 for your electric, and you'll pay $800 each month in the future. Finally, you can relax...gotcha! You now have to budget other expenses such as cable/internet, cell phone, food, gas, car maintenance, entertainment, etc. This also assumes you have all the furniture you need to move in. If you don't, you have to budget some money for furniture. I recommend second-hand furniture. You can find some great pieces at really cheap prices!

Are you nervous? Scared? Don't be! Millions of people have treaded down this path before you. You'll learn a ton from moving out and you'll enjoy so many unique experiences. Now that you know how much moving out may cost, you can examine your finances and determine your next move. Maybe you can find a roommate - it'll be like college all over again! That would certainly help to reduce your living expenses. If you prefer to live solo, perhaps you can trim other expenses to allow for your new living expenses. Purchasing generic products instead of branded goods, buying groceries instead of eating out 6 days a week, and decreasing the minutes on your cell phone plan can all save you loads of money!

I hope this has helped you put things into perspective when making the decision to move out or stay at home.

"But Manoj, I don't want to live in an apartment. I want a house!" Good for you! That's a whole different ballgame. More on that later!