How to boost your chances of moving out of mum & dad’s

By Hayley Hemmings
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Want to leave the bank of mum and dad? Getting your own place is an exciting step... if your finances are in order.

Moving out of home isn’t an easy feat for the millennial generation, so if you’re feeling embarrassed about still living with your parents, you really shouldn’t.

In the UK, as many as one in four young people in their twenties and early thirties still live with their parents. They can’t afford to move out due to sky high rents and house prices. (Rent prices have recently been reported to be as much as £850/month in England and Wales and £1,270/month in London).
So you’re not alone in still living at home, but just how can you find a way to making moving out financially viable, particularly if you have debt?

Aim for financial independence

It’s a no brainer that if you want to move out from home, you’re going to have to get your finances into shape, but to what extent exactly?

1. Kiss goodbye to your debt

If you have a heavy credit card / loan balance, try to reduce your debt as much as possible before going ahead with plans to move out of mum and dad’s.

Your debt might not bother you now but when you move out, it will have a nasty habit of getting in the way when you least want it to. Like when you get a higher than expected utility bill and you could do with the money you’re spending on debt repayments to pay that instead.

Or like when your car breaks down. Or, when you run out of money before payday and it’s a toss-up between making your debt repayment on time and being able to pay your rent/mortgage.

A large amount of debt is more hassle than it’s worth, especially if you’re living independently. So do yourself a favour and tackle it now, whilst you’re living at home. Check out this article on seven quick ways to pay off debt to get started.

In most cases, there’s no need to rush to pay your student loans off before moving out – check out this post for more information on how to deal with student debt.

2. Master the art of thriftiness and start saving

Living at home with the parents does have it benefits. Doing so usually means that you won’t have many bills to speak of and therefore you can save your disposable income in a savings account.

Savings are important when it comes to moving out for the first time. When you find a house you want to rent for example, there are a lot of associated costs to consider – some that you might not be expecting.  Here are some of them below:

A rental deposit – the amount you’ll need to pay upfront to secure a tenancy will vary, but you can expect it to be in the region of one to two months’ rent equivalent.

The rent itself – as mentioned earlier, rental rates these days are high. And what makes rental payments slightly more difficult to bear is that it’s usually due in advance. That means before you move out, you’ll need to have the deposit and first month’s rent ready.

Furniture – unless you plan on sitting on the floor and eating off your knees, you’ll need to budget some money to furnish your new pad.

Council Tax – a priority bill that must be paid to your local council, otherwise you can end up in serious bother. Council tax bills cover 12 months of the year and are usually paid in 10 monthly instalments. The amount you’ll pay will be determined by what council tax band your property falls into. Check your council tax band here.

Household bills – for example, a TV license, contents insurance, a landline phone bill, TV and broadband. And don’t forget that food and travel expenses are necessary too!

Parking permits - you may have to apply for a parking permit, depending on whether your new place sits within a controlled parking zone. Costs vary by council and you can expect to pay at least £80 per year – quite a bit more if you own a gas guzzler. However, if you own a low-emission vehicle, you’ll pay less. Check your local council’s rates here.

You’ll need even more cash stacked if you’re planning to buy a home

If you’re looking to buy a home rather than rent one, you’ll have to make sure you’ve got enough money saved to put down as a deposit. A larger deposit can allow you access to better rates.. Then you’ll also have to find money for the one off stamp duty cost and solicitor’s fees.
Either way, it makes sense to save enough money to reduce your debt first. Then save up enough to cover your deposit, rent/mortgage and bills for at least a few months before you actually move out, just in case any financial emergencies arise.

3. Manage your money efficiently

Before you move out, you should be well on the way to managing your money like a pro. As well as getting your debt under control and having some savings in place, you’ll need to make sure you can budget your money well. Preferably to make it last until payday!

A good way of monitoring how you spend money is to track your expenditure in some way. You could use a simple spreadsheet or try out one of these budgeting apps.

Checking your credit report regularly is a great way to get an indication of how your current lenders and creditors are viewing the way you manage credit. Take a look at this article to find out more about how to check your credit rating for free.

Get used to thinking about needs VS wants

You know those times when you decide to go out with friends, spur of the moment? Or maybe when you impulsively grab a bite to eat and then hit the shops on the way home to pick up something new to wear?

Those great times may have to become a bit less frequent when you move out of mum and dad’s. Getting your own place is great, but you may have to make some hard choices about what you spend your money on going forwards.

This is where needs VS wants come into play. When you’re living independently, sometimes you can’t spend money on the things you really want to, because you have to spend your money on things that you need instead.
It’s worth putting money aside every month to cover things that you’ll need to pay for. Because there’s no doubt that unexpected bills are going to hurt like a mother trucker.

Top Takeaway

Moving out is an exciting prospect for many millennials today. Getting yourself into a financially independent state before you do though is crucial. Remember to:

Make sure you’ve got your debt under control before you think about moving out – it’s an unwanted expense that just gets in the way when you already have bills to pay.

Save up a sufficient amount of money to cover all the associated costs that go with renting or buying for the first few months at least.

Make sure you can afford the rent / mortgage if you lose your job or some kind of financial emergency crops up.

What are your thoughts on the costs of getting your own place?

 

Author Bio: Hayley Hemmings is a freelance writer, blogger and tea addict from Yorkshire. She’s passionate about money matters, frugal living and loves anything handmade. When Hayley’s not writing, she’s most likely to be found enjoying snuggles with her little girl or walking her border collie through the beautiful Yorkshire countryside.  

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