Moving out of home is exciting, see some of the new money decisions you'll make.
Moving out of the family home is exciting, but it may also be the first time you’re responsible for big money decisions. Thinking through what expenses might come up and how you’ll manage the costs can make all the difference, whether you’re moving out with flatmates, your partner or flying solo. Here's our guide to help prepare you for moving out of home.
Knowing what’s coming up can help you get prepared.
Here are some things to start thinking about:
• How much you’ll pay in rent: One rule of thumb is that your rent should cost no more than 30% of your net income (what lands in your bank account). When you’re looking at where you should live, you might like to consider how much transport will cost you too.
• How long your lease is: A longer lease may protect you against rental cost rises, but there may be penalties if you choose to move before the lease expires.
• How you’ll go living with others: It’s a great idea to talk with your housemates about how you’ll share costs of things like rent, utilities, transport and food so you start on the right foot.
• How you’ll pay for furniture and appliances: Know what you can afford before committing. For example, if you’re considering using a credit card or a ‘buy now, pay later’ service calculate the potential repayments to assess whether or not you can afford them over the given timeframes. Keep in mind you might not need to buy everything right away and can take some time to save. You could also look for bargains on sites like Gumtree or Facebook marketplace.
• How you’ll pay for rent and bills: Paying your rent and utility bills on time is important. Missing payments can impact your credit score and rental history. You could even set up a plan for how you'll manage your bills early.
This list should help you think through what expenses will come up.
Once this list is complete, you’ll need to make a plan for how you’ll cover these costs. Will you tackle them on your own or divide the costs? You could even consider starting to put aside a portion of your pay to save for these costs in advance.
So the time has come to move out. If you're wondering where to start, work through this list line by line.
You should be settled in your new home in no time!
If this is the first time you're responsible for big money decisions, it can help to get prepared. Read our guide on 5 steps to financial fitness so you can be aware of the money habits it's worth setting up now!
This guide contains general information to support you as you build your financial fitness. It doesn’t consider your personal circumstances and isn't financial advice. The information is true at the time of publishing.