Leaving the family home for the first time can be intimidating but exciting. You’ve likely been giving a lot of thought to this moment and received lots of advice from family and friends. It is a big step that comes with many commitments that you must be aware of as they can have a lasting impression on your financial future. By being smart you can avoid debt and credit issues which can arise if not prepared.
Let’s break the big move down into smaller bits.
Your New Residence
Picking out your new residence requires some considerations when it comes to your budget. Below are different bills you and or your roommates will be responsible for.
Connection fees for utilities
Stay on top of bills by automating as much as possible, utilise direct debts.
One of the best ways to control costs and stretch the monthly budget is to have housemates and share the costs with others. Whilst this is a great to get more bang for your buck, its important to choose housemates carefully.
Establishing responsibility between flat mates can be a formal or informal process, as determined by contracts and agreements signed between you, them, landlords and utility providers. Formal agreements would indicate your name is on the lease, utilities, insurance, and any other services to the property, along with theirs. Informal agreements are determined by a signed document or agreement with the head tenant of the property. Perhaps that tenant’s name is on all of the contracts pertaining to the home, and your contract denotes an agreed upon payment to that tenant.
The Importance of Finances
There are many financial obligations when renting or owning a home. All of which are driven by credit. If your name is on a contract, your responsible for the agreement regardless of what flat mates may or may not do. Be sure to protect yourself and have agreements in place with all parties living in the home.
Preparing For Your Big Move
Once you’ve determined you’re moving, who you’d potentially have as a housemate, and what your budget allows, it’s time to address a solid checklist to ensure your move is as seamless as possible.
- Research the desired location of your new home. Take a look at the traffic in the area, it’s proximity to your work/school, and the lifestyle of the area. Does it match your wants and likes?
- Take stock of your current bills and how they will be incorporated into your new budget. What are things you can do to ensure you stay on top of new financial responsibilities and that your flat mates are taking care of shared bills
- Determine what things you’d like to bring with you to your new home. Do you have duplicate items in your current living space that you don’t need to bring with you? Moving is a great opportunity to evaluate what you have and what you’ll need. You can reduce the amount of clutter by going through your items now, before hauling them to your new spot!
- Prepare to update your address so you’ll never miss a beat! Make a list of organisations that regularly send you mail, or rely on documentation of your residence in their files. Your bank, place of employment, general bills (ie mobile, gym, etc) and insurance companies are all examples of these.
- Consider your insurance policies with your changed residence. Will you have health insurance if you move out of your family home? Does your new location affect your car insurance rates? What type of insurance would you like to carry for your belongings in case of unforeseen events? Perhaps even bundling car and home/rental insurance can save you a bit, too!
Moving out of the family home is an exciting new chapter and easy thing to do. However it also come with new responsibility in the form of contracts and bills. Take advantage of direct debits and any other areas of automation to help stay organised and in control of new commitments.
*This article is opinion only and should not be taken as financial advice. The information is general and has not taken into account your objectives, financial situation, or needs. Check with a financial professional before making any decisions.