EL PASO, Texas (KTSM) – Moving out of your parent’s house can be difficult and expensive. However, a new study done by GOBankingRates shows that El Paso may be the best city to venture out on your own.
The study shows that 9% of Millennials ages 23 to 39 live at home. However, they say El Paso is one of the most affordable cities making moving out easier. According to GOBankingRates, this is what you need to move out.
- Required savings before moving out: $3,542
- Ideal savings per year going forward: $5,020
- Pretax salary needed to live comfortably: $29,209
El Paso Financial advisor Michael Flores suggests that before considering moving out the first thing you should do is make a budget. Including and factoring in all the expenses you may encounter after you move.
“Your rent shouldn’t exceed your take-home pay along with that then you’re going to have added expenses. You’re going to have utilities, internet, cell phones, gasoline, insurances and stuff,” said Michael Flores, an El Paso Financial Advisor.
According to GOBankingRates El Paso ranked the third-lowest required savings needed to move out. Close on the list was Albuquerque.
Least Expensive cities to move out in:
- Tulsa, Oklahoma
- Tucson, Arizona
- El Paso, Texas
- Memphis, Tennessee
- Albuquerque, New Mexico
According to GOBankingRates, 60% of millennials still living at home reported it was due to financial constraints. El Paso Financial Advisor Michael Flores says it is possible but takes planning.
“If those student loans are eating up at a large portion of your budget then its probably advisable to put off the decision of moving out,” said Flores. “If you can allocate resources to cover those loans and you know still have money left over to pay for the rent then, certainly.”
The study showed that housing costs are what makes El Paso affordable with the cost for a one bedroom apartment on average being $725.