For anyone wondering how much money should you should save before moving, Credit Karma’s Chief People Officer, Colleen McCreary, says, “A general rule of thumb is to have at least three to six months’ worth of living expenses in savings.” Matt Gromada, Chase’s Managing Director, Head of Family, Student and Starter Banking, agrees, saying, “Your emergency fund should be several months of monthly expenses at your new location.”
When you move to a new place, you need to be able to cover not just your rent, but also a security deposit (which is typically first and last month’s rent), utilities, any new furniture you may need, and other expenses, like movers or a building fee, according to McCreary. You might think three to six months is a long time, but this cushion should be there should you need it down the line.
If you’re having trouble setting aside some extra funds, Gromada suggests using some tools your bank offers to help. “For instance, Chase offers Autosave, which allows customers to set up a repeating, automatic transfer from their checking into their savings account. You set it once and then don’t have to think about it again,” Gromada says. Even the tiniest amount each week can accumulate a lot over time.