Moving out of your parents' house? Save money for the big step

Deciding to move out of your parents' house can be one of the most important and challenging steps in your life. 

It's an adventure full of learning and self-discovery, but it can also bring financial stress if you don't make the right choices.

Here are some tips to help you make a smarter decision.

Is it my time to move out?

Envato/vadymvdrobot

Maybe you're thinking about leaving your parents' house to take control of your life as an adult. But before you take the leap, it's important to ask yourself if you're truly ready. 

This includes both emotional and financial readiness. Often, we forget to crunch the numbers, which can lead to unexpected surprises.

Where to start?

The first thing to consider is how you're going to pay the rent.

Do you have a job with a steady income or a variable income?

If your income is steady, it's easier to figure out the maximum rent you can afford. 

Don't forget to include all housing-related expenses in your budget, such as:

• Rent
• Electricity
• Water
• Internet
• Gas
• Maintenance fees
• Other services

Think about not only the cost of living in the apartment but also all the maintenance it requires. 

Living by yourself it's like owning a car; there are ongoing costs to keep it running.

And speaking of cars, if you have one and the apartment doesn't come with parking, you'll need to find a place to park it, which is another expense.

How to move out of your parents house with a variable income?

If your income is variable, you'll need to be extra careful when figuring out how much rent you can afford. A simple way to do this is to average your income in the last year, including your lowest and highest income.

Avoid spending more than 30% of your monthly income on rent.

I know it might be tempting to live in a bigger apartment or a fancier neighborhood, but if you spend more than 30%, you'll eventually have to cut back on other things like vacations or saving for your goals.

Worst case scenario, you could end up living beyond your means and getting into debt, so be mindful of this.

Other details to consider before moving out of your parents’ house?

If you’re thinking about moving out when you're just starting your career, maybe you should take some time to consider. 

Envato/prathanchorruangsak

You can start planning now to make it happen in a few years. Use the time with your parents to save money so that when you're ready to move out, you'll have a fund for:

• Paying the deposit
• Buying furniture
• Buying appliances
• Being prepared for emergencies
• Setting up utilities
• Other expenses

During this time, try to save money by cutting back on unnecessary expenses. 

Also, practice and develop skills like organization and responsibility. Learn things that will help you when you live alone, like cooking and managing household expenses.

Alone or with a roommate?

Look into the areas where you want to live, find out how much rent and utilities cost, and use that information to plan your budget. 

If you decide to share the costs with roommates, your expenses will be lower, which can be a big help financially.

Stick to your life goals

Once you've made the decision to move out, stick to your budget. Avoid going overboard with parties, gatherings, or even home decorations. 

Envato/bondarillia

Keeping a budget will help you avoid debt and the need to move back in with your parents. 

Even if you're paying rent, your goals might not stop there. You might decide to start saving for something bigger, like land or your own home. If so, you'll need to do another budget analysis, but remember:

NEVER STOP SAVING to achieve your dreams.

May your journey to moving out be enjoyable and free from financial stress!