Money Management /

Moving out of home what's the rush?

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If you’re heading towards your mid-twenties or even your thirties and haven’t flown the coop yet, don’t feel bad. Figures from the Australian Bureau of Statistics show that in 2006, almost one in four people aged 20–34 years were living at home with their parents, compared with 19% in 1986. With housing prices on the increase, adult children are staying at home longer and longer.

It’s not such a bad thing

Staying at home for longer can give you a better base from which to spring from. You could have your car paid off, savings in the bank or perhaps even a house deposit. Making sure that you wait a little longer can also lessen your chances of having to head back when things don’t work out.

The ABS statistics show that the chance of returning to mum and dad at least once before turning 35 is almost one in two (46%), with most returners lasting only one to two years out of home before going back.

Taking the plunge

If you do decide to take the plunge, make sure you set yourself a budget and stick to it. Set aside a little each week for unexpected expenses. Talk to others about what their average costs are for rent, electricity, gas, phone, internet, food and transport. Remember to take into account expenses you may already be paying such as mobile phone and credit cards - using a budget calculator can help.

It is good to have an amount set aside for removal costs such as your bond and any moving costs you may incur. If you are a student, make sure you have a chat to relevant government departments about any benefits and/or rent assistance you could receive.

Check insurances

You may not be covered by your parent’s health insurance once you move out of the family home - make sure you check the policy. Check when your car registration and car insurance is due to be paid. It might be a good idea to have money set aside for this before you move out to give you a little breathing space to get used to paying all your own costs.

Setting up

You are going to need to set up your space, especially if you are not moving into an established share house. Things like cleaning products, furniture, linen and kitchenware will generally all need to be included. You may find that family members have a spare fridge in a garage or a second-hand lounge that they may be happy to give you to help with the initial costs of setting up your pad. Otherwise, you could scour classified sites such as Ebay and Gumtree or buy, swap, sell groups on Facebook. Often you will find that people who need to relocate quickly will give quality items away for next to nothing just to save them the cost of moving them or disposing of them.

Dealing with the unexpected

In an ideal world, we would all have money set aside for ‘emergencies’ such as the car breaking down. However, it may be a good idea to consider having separate savings account with funds for emergencies or a low limit credit card that you keep only for emergencies and can afford to pay off. It may be a good idea to keep it at home and not in your wallet where you could be tempted to use it on an impulse purchase. Using a credit card responsibility could also help you to establish a good credit rating which will help you later if you decide to apply for a home loan.

Read about the three money stages before 30

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