Can I Afford to Move Out From my Parental Home?

It can be difficult when we first leave the parental home as we are suddenly hit with lots of things to pay for which we are unlikely to have had responsibility for before. It is good to think about whether this is something that you will be able to afford.

Calculate Costs

It is therefore a good idea to start off by calculating how much it will cost you to move out of home. It is not always that easy to calculate all of the costs, but you should be able to estimate them. You may already have a car and phone and so you will know the costs of those and perhaps have to buy your own clothing and toiletries. However, there will be a lot more to pay out than that. You will need to find money to pay the rent or mortgage, utilities, insurance and food. Then if you want new clothes, to go out, buy gifts or pay for your hobbies, there will be even more money needed to pay out. It is good to get an idea of how much these will be. Your parents will be able to tell you how much they spend on food so you can calculate how much your shares costs. They will also be able to tell you how much their bills are and you will be able to use this to estimate what yours will be depending on what size of home you are planning on moving in to.

Build up Savings

It can be really wise to build up some savings before you go. You are likely to need a deposit to pay towards a rental or a mortgage, but you will also be wise to have some money available to fall back on. Then, if you find budgeting difficult or have miscalculated the costs of living away from home, you will have some money there so you can manage. Try to get a significant chunk, that would cover your bills for a few months if you can and that will give you a feeling of security as you will know that even if you lose your job, there is a bit of money there to help you out.

Have a Good Job Behind You

Having a good job can be really useful as well. A permanent job, as opposed to self-employment or temping work can make a really big difference. Not only will it mean that you will be more likely to have the money coming in to cover the bills, it will mean that you will have a better credit score and that will mean that you will be more likely to get a mortgage or a rental agreement. It will also give you peace of mind, knowing that you will be more able to pay the costs associated with moving out of home.

So, whether you can afford to move out will just depend on whether you are earning enough money to cover the costs of living on your own. However, this can be tricky to calculate and it can therefore be a good idea to make sure that you have more than enough. It is wise to roughly estimate it and then assume that it will be higher. Overestimating costs is the sensible thing to do and then you will be prepared just in case it is dearer than you thought. Having some savings to fall back on can be really handy and also knowing that you have a job which will keep bringing in the money to cover those costs. It is worth delaying moving out if you can, until you are completely confident that you can manage.

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