Budgeting Guide For Moving Out Of Home

Moving out of home can be very exciting – but it can also come with some surprising financial snags, from the cost of removalists (if you're using them) to sudden monetary requests from your new landlord. And if you're moving out on a budget, things can be even more stressful. Like many things in life, it pays to be prepared when moving out of home for the first time – so here's our guide on how to budget for moving out of home to help avoid any surprises.

Once-Off Costs

The costs associated with moving out are usually split into two types: once-off costs and ongoing costs. Once-off costs are among your highest priority when you're moving out of home, especially if you're moving out on a budget. These costs can be substantial, and they can all fall within a small timeframe. These one-off costs include:

    • Rental bond. A rental bond is paid to secure the property you are looking to lease. At the end of your lease period, providing you have paid your rent on time and have not damaged the property (outside of general wear and tear), this bond will be returned to you. The bond is usually the equivalent of four weeks' rent.
    • Up to four week's rent up front. This is usually paid on top of the bond.
    • Connection fees for utilities and internet. Some rental agreements will have certain utilities included, but where they don't, you'll need to have the money ready to pay for the connection of utilities including gas, electricity and internet.
    • Parking permits. Parking around apartments in most major cities can be incredibly difficult to come by, and chances are you will need a parking permit that allows residents to park for free around their home.
    • Removalists or van hire. Unless you have some very kind family or friends willing to help, the easiest solution for moving is often hiring a van or a removalist. Their prices can range considerably depending on how much they need to move and how far they're moving it, and weekends can cost you more, too.
    • Furniture and homewares. It's surprising how fast this list can add up! For inexpensive additions to your new place, try thrift stores, eBay, or even Facebook Marketplace to find some great deals on couches, dining tables and more.

Ongoing Costs

Once you're in the clear from once-off costs, the next thing you'll need to consider are ongoing costs. These will likely be a part of your overall monthly/fortnightly/weekly budget (for example, rent), but should also be a part of your budget for moving out of home, ensuring you are comfortable in the long-term. These ongoing costs can be things such as:

  • Rent. This will be your biggest expense of all, so it's important to make sure you can afford ongoing rental payments before you move.
  • Utility bills, such as electricity and gas. Bundling these together with the same provider (where possible) can save you money.
  • Internet and phone bills. Although pricey, purchasing a phone outright and paying for a SIM only plan is much more cost-effective than taking on an expensive phone plan.
  • Groceries. Consider comparing prices across Coles, Woolworths and Aldi to find the best deals.
  • Transport/petrol.
  • Contents insurance, if you choose to take out a policy.

Determining these costs will help you better budget for your move.

Looking for ways to save every day once you've moved out of home? Check out our guides to saving money on groceries, or how to save money on your household bills.

Get Yourself Ready To Move

A little bit of forward planning can make your first move out of home a lot less stressful. Here are some things that can help ease financial worries, helping you to enjoy your new time out of home.

Open A Savings Account (And Set Yourself A Goal)

A savings account is your best bet when it comes to budgeting for moving out of home, or for anything important in life really. It's always a good idea to have a bit of money set aside. Open an account with your preferred banking institution, and set yourself a savings goal.

Calculate How Much You Can Afford To Save

You don't want to move out and find that you're funnelling your money into living expenses, so it's important to sit down and define a budget for yourself. Factoring in savings within your monthly budget to help you figure out how much you can save.

Make A Checklist

Keep a checklist of things you need to purchase and pay for before you move. This will give you a better understanding of how much money you'll need to set aside for the big day.

Set Up An Emergency Fund

Start setting aside a small amount of money each week for your emergency fund. This can be used for urgent matters, such as car repairs or unexpected medical bills, and will prevent you from dipping into your savings.

Don't Rush It

If you're moving out on a budget, it's good to have all things settled before you go. Don't try and rush out and rent an apartment if you know you're not in a position to do so – it could lead to debt and other problems.

Need some more hints and tips for staying financially savvy? Check out our blog for more.