How Much Do I Need To Save Before Moving Out?

Moving out from home can be a big deal for young adults. In fact, it can almost be considered a milestone in an individuals life. It’s an event that marks stepping out into the world on your own and away from the security of your parents and forcing you to become a little more self-reliant.

While daunting for some, it’s an exciting time for others.

Living in the comfort of your home can lead to a very cushy lifestyle and a reliable safety net. You don’t have to worry about any ongoing costs such as paying utility bills or other bills. However, for some, it does not give a sense of fulfilment. Living on your own certainly does bring about a certain appeal; especially when it comes to enjoying your own independence – Besides, you can’t be living at home forever right?

Of course, there are many reasons why you may still live with your parents. It could be that you are still saving money after graduating from college, or perhaps it’s just simply more convenient to live at home while still attending school.

Whatever the reason, if you’re reading our article, it’s because you’re seriously considering or wondering how much money do you need to move out.

If you want a quick answer to how much you might need, then the short answer we recommend is at least 4 months worth of savings to cover both rent, bills and other costs.

To find out if living away from your parents is something you can do, let’s go over some crucial things you need to consider first.

1. Ensure You Have The Income To Pay Rent and Cover Expenses

girl-calculating-rentSo, you’ve saved up what seems to be a tidy sum in your savings account. However, it is imperative you accurately consider all upcoming expenses you’ll need to cover. It’s highly recommended that you do this to have a better idea of whether or not you have enough in your budget should you decide on moving out of home.

If you have $5,000 or $10,000 on hand in your savings account right now, envisage how far that extra money will take you, especially if you have yet to find a job.

Location will play a big part in your careful planning, as depending on where your new address is, pricing can vary including your month’s rent. Living in Sydney alone, a single person would need about a thousand dollars at least, to spend monthly, excluding the rent.

You’ll also need to consider any outstanding debts you might have prior to moving. These can include anything from an old student loan you haven’t paid off to car repayments, an outstanding phone bill or contracts that you might still be tied down to. Even considering your current credit history will be important.

It might also help to consider giving up other living expenses. For example, try capping the number of times you are eating out as one of the ground rules; or consider the price of your current gym membership.

Finally, we recommend having enough money in your savings account to be able to handle around 4 months at least, along with all your own bills you will be incurring on a monthly basis.

2. Consider Relocation/Moving Costs

Relocating — whether in the same neighbourhood or city or interstate — comes with certain transportation costs. Moving is not just about packing your bags and a few boxes and then fixing up your new place so it becomes habitable.

The costs of moving really depends on a number of factors :

If you are looking for a quick answer to some of these questions then you can consider using our removal costs calculator.

Whether you’ll be hiring a removalist or moving on your own using public transport, there’ll be other expenses and additional services you need to prepare for. These include but are not limited to furnishings, chinaware, cutlery, pots and pans and certain appliances you need to live a decent life.

3. Forecast Your Monthly Rent

dollar logo Ensure that when moving out of your parents house, that you’ve accurately worked out the cost of renting out the property you are keen on. There is nothing worse than being tied down to renting a property you cannot actually afford.

In general, in Sydney, you can expect to pay around $1,500 or more for a one-bedroom in rent.

You also need to be prepared for the different fees related to your lease, such as the advance rent payment, option fee and pet fee, as well as your security deposit or bond payment and insurance.

If you’re earning more than a couple of thousand dollars monthly, renting an apartment for $1,600 to $2,000 might not be such a big deal. But if you end up barely scraping by, then your new lifestyle might not be as enjoyable and moving out right now might be something you’ll have to put off for the time being.

4. Budget For Essentials

Before you can settle into your new place, you’ll have to consider some of the more obvious expenses you’ll have to pay for such as food, cooking essentials along with your monthly spend on essential household items.

These include some of the following:

Aside from your finances, you also have to think about budgeting your time. You’ll probably have to prepare and cook your food now, so schedule your tasks accordingly.

5. Utilities and Recurring Expenses

utility-billNext is to consider monthly expenses for your overall spend.

How about utilities, electricity, internet and other services you’re subscribed to? What about car repairs or maintenance costs you’ll have to pay for. If you don’t drive then consider what you’re monthly feeds will be for your daily commutes.

These can very quickly add up and eat up a significant portion of your monthly income and savings.

Other possible expenses include rubbish collection, recycling, sewer and parking fees. You also have to budget for your monthly mobile phone subscription.

Finally what about insurance? If you have a lot of valuables you want to take with you, then paying for contents insurance would be another consideration. Renter’s insurance is also another consideration.

Comparing Recurrent Costs Vs One Time Costs

Moving out is expensive. There are however two types of costs to consider as seen in the table down below.

moving out costs

 

6. Employment status

working-man-holding-a-small-houseNext, you will need to consider your employment status and whether or not it can sustain all your living expenses whilst living in your new property.

Did you just get a new job or have you been working for several years whilst living with your parents? A stable job would naturally make your financial situation that much more stable.

Would you be financially solvent with enough savings in case you lose your job and need to look for a new one whilst paying for rent and utilities?

Financial advisors say that as a rule of thumb, everyone should keep an emergency fund equivalent to about four to six months of their budget.

Do you have this ready if something unexpected comes up, such as unemployment, a medical emergency or something else?

7. Will You Be Comfortable In Your New Neighbourhood?

Aside from your financial situation, you should also consider whether the neighbourhood you are moving into will match the lifestyle you looking for (plus can afford it)?

Since leases usually run for a year, it’s crucial to make sure the community you choose is the right one for you. For example, if you’re a health buff, are there gyms nearby or perhaps a park near your property where you can walk or run?

As you’ll be cooking your own meals, are there grocery stores or supermarkets nearby or is there a pricey health food store instead?

Is your house address close to your office, so you can easily walk or cycle to work? Or do you need to take a daily hour-long commute to your work one way? Would this be something you can do for the long term?

Consider your daily habits and goals, and see how these fit into the neighbourhood you’re choosing to live in.

8. Sharing options

If you’re keen on moving to a new property by yourself, but are unsure whether you can afford to, ask yourself if you’d be open to getting a roommate or moving in with friends.

Sharing the rent between you and somebody else can help you reduce your expenses significantly.

However, you’ll be sacrificing a bit of your privacy, and you have to be 100% sure that you’ve found a responsible and trustworthy roommate or friends to move in with.

If you don’t know them personally, vet them thoroughly first.

The Big Question: Is it Time To Find a Place Of Your Own?

question-mark When it comes down to the crunch the single most important question to ask yourself is: Are you being realistic or are you just in a hurry?

We urge you to carefully weigh your options before moving out of your parent’s house in order to ensure your readiness to live a truly independent life. Consider each cost carefully and double-check you can afford all your bills and the rent.

If you find out you’re still financially inadequate, continue saving or open a bank account you’ll be using to put together your moving-out fund.

Remember, there’s nothing like having a solid financial cushion not to mention a healthy emergency fund you can use to future-proof your finances in your quest for independence.

Finally, it’s important to remember your health is your wealth. If you are ready to move out of your parent’s house and into your new property then it pays to remember there is a raging pandemic still happening: our handy guide on moving during COVID can offer some quick tips.

 


 

Additional Pro Tips On How To Save Money When Moving Out

Don’t Use it? Sell it!

Many people don’t realise it, but over the years you may have accumulated a lot of items you just haven’t used in years. Why not consider selling your old stuff? This can do wonders for your savings account

Be Sensible and Avoid Any Unnecessary Transport Costs

Avoid paying for convenient rides such as taxis or Ubers if possible as these costs can add up and just use public transportation.

As for your move, do your research on what time of day or week might be best to move. For example, here at ZOOM we offer Cheap Removalist Tuesdays which can do your savings account wonders.

Try and get your siblings or even mum and dad to help with your packing or relocation where applicable.

Look At Your Monthly Fees and Subscriptions

This is where it makes sense to look at your bank statements a little closer. Are you paying for any unnecessary subscription services that you are not using frequently enough? Subtle subscription services can be a real killer, as they may at first seem harmless but can certainly add up.

 


 

Soften The Blow With Your Moving Costs With ZOOM

Removalists Sydney - ZOOM GuaranteeAt ZOOM Removals, we understand how much it can cost when moving out of home, as a result, we offer a number of moving solutions for every customer :



It appears you're using an old version of Internet Explorer for safer and optimum browsing experience please upgrade your browser.