There are many young people that would like to move out of their parents’ home but struggle with the cost of it. Some may go away for university and then find that when they return home, they would like to continue with their independence but find that it is too expensive. There are others that might find that they will stay at home but feel that they would like to leave and show that they can be independent. However, being financially independent is difficult and it is something which will probably take some planning.
Calculate the costs
It is good to start by calculating exactly how much it will cost to leave home. The costs will obviously depend on what sized place you are moving to, whether you are sharing the costs or on your own and things like that. It should be reasonable to be able to make some sort of estimate. You will be able to get a good idea of what you will need to find in rent by looking at adverts locally where there are properties to let. These adverts may also have information about the cost of council tax and utilities and if not, this can be found online with sites such as Zoopla. You will also need to allow for costs of food, insurance, television licence, travel, entertainment, loan repayments, contracts and anything else you currently pay. You may also have other commitments that you normally pay for and you will of course not only need money for things like clothing and gifts but you may also need to buy furniture or other household items for your new home. This could end up adding up to quite a big scary lump sum, when you put the deposit on top as well as a high monthly cost. However, it is really important to know exactly what you are aiming for.
Then you will need to start saving. It is wise to start by saving up the lump sum that you need and perhaps even a bit more just in case. You will also be wise to make sure that you will have enough for each month as well. If you think that there might be some months that you could struggle, perhaps because you have extra expenses that month, then you will need to have some money put aside for that, either before you move out or make sure that you do it on months when you are better off.
You will need a method for saving up. You may need to have a long hard look at how much you earn and think about whether there is a way that you can earn more. Or you may need to look at what you are spending and think about whether you can reduce that at all. It might also be a case of doing a bot of both and finding a balance where you earn more and spend less and then you will have enough free money to be able to save some.
Saving money is a great thing. This is not only because you will have the lump sum of money that you will need but it also means that you will be in the habit of not spending all of the money that you are earning. This will be a great habit to go into your new place with because you will need extra money to pay rent and things like that so it could be the case that if you continue the same pattern of earning and reduced spending it could you leave you enough for those extras that you will need.
Get parents to help
You may find it useful to ask your parents for help. Not necessarily financial help but perhaps advice. Although financial help would be great and if they could pay your deposit or reduce what they are charging you to live at home so that you have more of an opportunity to save up.
If they cannot afford to do that then they might be helpful in being able to offer advice. It is worth remembering that they are likely to have gone through exactly what you are going through and so should be able to give you some tips. They might even be able to do things like remind you not to spend money. This may sound odd, but if you are in the habit of spending then you might need some help to break that habit.
Check long term costs
It is good to check the long-term costs of living on your own as well. It is worth bearing in mind that costs could rise over time, rent and tax is likely to go up, possibly even yearly and most other things will also rise with inflation. You will need to be confident that your salary will rise in line with that so that you will be able to afford those increases.