Since the early 2000s, statistics have indicated the more and more millennials are staying at home longer than the previous generation. This is being influenced by a range of macroeconomic and social factors, from college debt to low paying jobs and the rising price of getting on the property ladder.
While living at home can be a great fallback at first, you may be beginning to feel the strain of not having your own space and the freedom to come and go without having to explain where you’re going. This is when it’s time to start getting your finances in order so that you can move out.
It’s essential to take certain steps to financial wellbeing before hastily moving out, otherwise you could experience the boomerang effect where you have to move back home again. For peace of mind, we’ve got you covered with these top tips on how to save money when looking to leave the family home.
1. Create A Budget Plan
When planning to move out, it’s essential to start budgeting so you know exactly what your ingoings and outgoings are, enabling you to put money aside for the big move. Not only will you need to budget for things like a deposit and the first two months’ rent, but there will also be added costs like bills, car payments, tax, groceries, phone bill and funds to buy furniture too.
There are many handy apps that can be downloaded to help you keep track of your spending and will enable you to see how much you can put aside each month for moving out. Or if you’re more of a paper and pen kind of person, keep a little book of all your outgoings for a few months to help you plan ahead.
2. Explore Alternate Living Spaces
Buying a home costs millennials 14 times more than baby boomers, making it incredibly hard for the younger generations to get onto the property ladder. With banks being more cautious about lending large sums of money and property prices soaring for the average property price, it’s no wonder it’s challenging.
While purchasing a standard home may not be an option at the moment, there’s a rising trend where younger people are looking for alternative housing to get out of the family home. Options such as barndominiums and tiny houses are becoming popular options as they’re more affordable and offer a significantly better quality of living, compared to a tiny condo or city apartment.
3. Consider Getting a Roommate
While moving out on your own may not be an option currently, if you’re not willing to wait for many months in order to save up, then a roommate could be a viable alternative option. A roommate could also mean you could rent a place much larger than what you could afford on your own too and will add more security in case of financial hardship.
Not only will it help with finances, moving out on your own can be a shock to the system. Having a roommate around will help ease the transition to living alone and provide some much-needed company while you’re finding your feet. Just be sure to make sure you’re compatible with the person before you move in together!
4. Consider Waiting a Year
While you’re most likely very eager to move into your own place, without the right savings and backup systems in place, you may find yourself back at home sooner than you thought and starting the process all over again.
If you can, consider staying at home a little longer to build up the right financial safety net, as well as money for your deposit, bills and of course, leisure activities too.
Overall, moving out on your own can be a challenge in this day and age, but with the right attitude and determination, you’ll soon be in your new pad.