A money guide to moving out of home

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.

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Step 1: Think through sharing expenses

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.

Step 2: Estimate your upcoming expenses

This list should help you think through what expenses will come up.

Upfront costs

Removalist or van hire
Utility connection fees
Electricity/gas bill
Furniture and/or appliances
Internet connection
Rent or mortgage
Bond (rentals)
Home and/or contents insurance

Ongoing costs

Rent or mortgage payments
Utility bills like gas, water and electricity
Internet and phone bills
Groceries
Transport
Furniture and/or appliances

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.

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Step 3: Refer to our checklist for moving out

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!

Get rid of any unwanted items or sell them to raise extra money for your move
Work out what up-front and ongoing costs you’ll incur and how you’ll budget for them
Talk to whoever you’ll be living with about how you’ll manage future costs
Book a removalist, hire a van or ask friends or family to help with the move
Sign up for electricity, gas and water connections
Sign up to an internet provider
Update your new address on your driver's licence and wherever else necessary
Change or cancel any memberships you won’t use, like a gym membership
Redirect your mail and subscriptions

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Step 4: Consider how you'll manage your money

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!

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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.