You may not realise how much money you save living with your parents until you move out. So, before you take that step, make sure you are financially ready to go out on your own.
Plan Before Moving out of Home
Many Gen Yers don’t realise the real cost of living out of home. Yes, you may budget to buy the big things like a bed or fridge, but what about the small things? There are so many items you may take for granted when living at home and you won’t realise how much they will all add up to until you’re faced with paying for these yourself.
Take a look in your parent’s pantry – imagine what all of those cereals, snacks, sauces and even herbs would add up to. What about the cleaning cupboard? All of those sprays, wipes and cloths are not always cheap.
So, how can you avoid a complete shock at the supermarket register? Plan ahead. Use your parent’s house as a guide as to what necessary items you will need when you move in. Then, you can either start saving money each week or even buy a few items every week leading up to when you move out.
Self-Control with Spending
When you live with your parents, it may have been affordable to buy new clothes or DVDs whenever you want, but, depending on your income and expenses, you may need to exercise some self-control when you move out.
However, you should not cut out all leisure spending completely as there may be a greater chance of a splurge in spending down the track. It is about keeping everything in moderation. Some ideas include:
• Make coffee/lunch for work, but have a treat day once a week
• Instead of going out to dinner, have a pot luck party at home
• Go to the movies on cheap Tuesday
• Keep an eye out for online shopping deal sites
• Look on your local council’s website for free events in your area.
There are plenty of ways to still enjoy time with your friends without blowing your budget.
You may not think you can afford to put money away for savings, however, even the smallest amounts can add up over time. One of the best things you can do is the moment your pay goes into your bank account, immediately deposit an amount into your savings account. Many financial institutions offer high interest savings accounts, so these weekly/monthly deposits will help your savings grow.