This period marks a big event in many young Australian’s lives. HSC has finished, they are on schoolies, they may be considering what University to attend or where to find a job-in their minds they are finally adults and finally free. So many may be thinking about leaving home, and going it alone. If you are in this situation you may not have considered everything involved both emotionally and more importantly financially.
More kids stay at home
The trend over the last couple of years is that more youths are remaining in the parental home for longer. In Australia 1 in 4 people aged 20-34 remain at home with their parents (this figure is higher in Sydney and Melbourne). Males are more likely to, more people are financially dependent on their parents, and even if they do move out around 50% are likely to return if circumstances change. Finances are the most commonly cited reason for remaining. So how do you know when you are financially ready to leave home?
Think about the costs involved
The best way to figure out whether or not you could afford to leave home is to work out a budget. How much are you going to earn? If you are going to attend uni, you are more likely to have a casual job of which your income could potentially change week to week. Some people may have luckily roped their parents into helping them-if this is the case be certain of how much they are willing to contribute. Then tally up all the expenses you will have-rent, utilities, food, transport and entertainment.
Are you eligible for Government assistance?
Find out whether you will be eligible for any government assistance payments from centrelink such as Youth Allowance, Rent Assistance or Newstart allowance. These are very minimal but they could help you. Remember that any payments you get will be reduced by amounts you earn and they are often means and income tested which could be affected by your parent’s assets.
Are you going to share with others
Sharing the costs of rents by having housemates can be a good way to cut down on your costs not only in terms of rent, but also in household bills. Whilst this could save money, it also can have serious implications if you are planning on moving in with friends. You might find simple arguments erupting constantly so you really need to consider whether you can live with these people. You also need to establish clear guidelines of expectations and how the finances are to be split.
What are the costs of rent?
Obviously rental prices are going to differ depending on state, area and size of dwelling. In terms of location consider how it will affect your travelling costs. You also need to factor in other costs such as bonds, rental increases, notice periods, inspections and rental disputes. You will then need to consider all the other added costs of moving home including removalists, connection fees for utilities and internet, parking permits, postal redirects, furniture, kitchenware, bedding and more. You should also set aside a fair amount for the first shop as you will need to purchase all items from scratch which is going to be a hefty sum.
Are you going to be able to save anything?
Whilst as a young person purchasing a home and saving for the future can be one of the furthest things from your mind, you should consider it. Housing and living prices continue to skyrocket and it can take many years before you can save a deposit for a unit or house. If you are wise, you will think about that now. If you do move out it is likely that all your money is going to go down the toilet, but if you can stay at home and save you will be setting yourself up financially for life.