---
title: 'When Can You Move Out on Your Own? (Financially)'
source: 'https://youtube.com/watch?v=mJcz2tsPtrY'
video_id: 'mJcz2tsPtrY'
date: 2026-08-05
duration_sec: 67
---

# When Can You Move Out on Your Own? (Financially)

> Source: [When Can You Move Out on Your Own? (Financially)](https://youtube.com/watch?v=mJcz2tsPtrY)

## Summary

This video provides a financial checklist to determine if you are ready to move out on your own. It outlines four key criteria covering rent affordability, savings cushion, retirement contributions, and debt management, with a specific example based on a $100,000 annual income.

### Key Points

- **Four-Point Readiness Test** [00:01] — To be financially ready to move out, you must pass all four criteria: rent under 35% of take-home pay, sufficient savings for first/last month's rent plus a cushion, continued retirement contributions, and no high-interest 'now pay later' debts.
- **Rent Affordability Rule** [00:13] — Rent should be less than 35% of take-home pay. For a $100,000 annual salary, this equates to about $2,327 per month in rent.
- **Savings Cushion Requirement** [00:29] — Moving out is expensive; you need to cover first and last month's rent and have a cushion to avoid being cash-strapped after the move.
- **Retirement Contributions Must Continue** [00:44] — Even with the new rent, you should still be contributing to retirement savings, ensuring that moving doesn't derail long-term financial goals.
- **Debt Management** [00:57] — Avoid high-interest 'now pay later' debts as they are wealth killers. If moving to a higher rent, ensure your debt is under control.

### Conclusion

If you don't meet all four criteria, it may not be the right time to move out. Your future self will benefit from waiting until you are financially secure.

## Transcript

your own place? So, whether you live at home or you have roommates, use this test. You need to get four out of four, and if you do, you're ready to move out. Number one is that your rent should be less than 35% of your take-home pay. So,
you can see that if you make around $100,000 per year, the monthly rent that you can afford is around 2327 per month, and that's based on your take-home pay. thin by renting a place that you can't comfortably afford. Number two, you have
because moving out is expensive. You need the first and last month's rent need to make sure you have a cushion so that if you do move out, you aren't cash Number three, you're still contributing to retirement even by moving to a new
place and paying that new rent. And number four is that you have no high now pay later debts because those are wealth killers long term. So, if you place with a higher rent, you want to make sure your debt is under control. If
you don't have all of these four, maybe it's not time to move out just yet. You future self will thank you for it. And let me know in the comments if you agree let me know in the comments if you agree or disagree.