Life Journey Series – Moving Out of Home

​Today is the day. It has finally come. You are ready to spread your wings and fly the nest. Firstly – congrats!
You’ll prove to yourself, your parents and your annoying siblings that yes, you can make it on your own and no, you don’t need anyone to do your laundry. It’s time to take #adultlife on the chin and to move out. 

But before you pack your bag and race out the door, it doesn’t hurt to speak to your pals at Visia for some trusty financial advice (because we love you):  

First off, as always, can you afford it?
How much is your power bill, your gas bill, your internet, your food, your water (yes….. you pay for water) your phone and of course, your rent and deposit?
Moving out of home comes with a large list of new and exciting (well, maybe not exciting) bills and expenses. It’s time to do a budget. Estimate, as best you can, how much you will be spending on these new bills and compare that against your current income. While you’re at it, budget some extra money towards toilet paper, dish liquid, laundry powder, floor cleaner, cleaning utensils, lightbulbs and toothpaste. All the things you took for granted while at home are going to start costing you money (Yay!).

Set up a cashflow system
Ask anyone and they’ll tell you, ‘the bills all come at once’. It may feel like that sometimes, really what you are doing is waiting until your next payday so you can ‘pay them all at once’.  Sound familiar? Try not to get to this point. Map out which times of the month certain bills will be appearing and create a separate account just for them. This will stop you going ‘oh, I’ve got loads of money, sure I can afford this new shiny gold-plated hat’.
 
Keep a rainy-day fund.
Expect the unexpected. When you’re out on your own, managing your finances and being a fully functioning adult, things happen. A flatmate might move out, you might get sick and lose a few shifts at work, you might need dentist work or a new set of tires. When the unexpected used to happen living at home, you had a safety net of not having to worry about keeping a roof over your head. Now you do. Keep some emergency cash squirrelled away.
 
Get some contents insurance
How much is all your stuff worth? Even if all you own is a bunch of clothes, shoes, a few bits of furniture a phone, laptop and everyday items… it’s likely more than you think and definitely an amount you don’t want to fork out all at once. Also, if you’re celebrating your newfound independence with a shindig and someone slips and hurts themselves (it happens), you may be liable. Most contents insurance will cover you.
 
 
What’s the plan? Is this a long-term move, or do you want your own place?
As with any big life decisions you should try and look at the bigger picture. Is this move part of a larger plan? Do you want to save money while living in share houses for your own place? Is it just to get you through Uni? Sometimes it’s hard to see past your next pay day let alone years into the future. But a little foresight and planning will go a long way in your financial life.
 
At Visia, we can help you get a clearer view of the future ahead. Chat to us today.
Kora Drage is an Authorised Representative of Financial Wisdom Limited ABN 70 006 646 108, AFSL 231138. The information contained in this article may contain general advice. It does not take into account your financial circumstances and objectives. You should consider talking to a financial adviser and read the relevant Product Disclosure Statement (PDS) before making a financial decision. Any views and opinions provided in this article may not reflect the views and opinions of Financial Wisdom Limited