Moving out of home, what's the rush?

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. By 2021, the Australian Institute of Family Studies found that 46% of young people aged 20–24 were still at home. With housing prices and cost of living 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.

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. Waiting a little longer may also lessen your chances of having to move back if things don’t work out.

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 a good idea to have an amount set aside for 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 may be eligible for.

Check insurances

You may not be covered by your parents' 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 while you get used to paying all your own costs.

Setting up

You may need 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 obtained by you. 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 Marketplace, Ebay and Gumtree or buy, swap, sell groups on Facebook. You may find that people who need to relocate quickly will be willing to part with quality items at a reduced cost to save them the cost of moving 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.

Articles on Financial Wellbeing

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Important Information

This article has been prepared by IMB Bank and contains general information only. It is not intended to be relied on as advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal,  financial, taxation or other professional advice before you make any decisions about your business. Consider the relevant Terms and Conditions or Product Disclosure Statement and Target Market Determination available here before deciding whether to acquire any products or services offered by IMB Bank. Lending criteria, terms and conditions, fees and charges apply to IMB loan products.