Whether you’ve been counting down to this moment, or it’s all happening faster than you expected, moving out of home for the first time can be a pretty daunting experience! 

For many young adults, this is the first step towards true independence and oftentimes, a hard launch into the world of personal finance. You might be wandering, ‘Where do I even begin?’, but don’t worry bestie, we’ve got you covered. 

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The Absolute Basics 

Some of these expenses you’ve probably considered at least once, but here’s the lowdown on each cost and how much they might add up to.

Rent: This is the monthly amount you now have to pay to have a roof over your head. The location you choose to rent in and the size of your place will impact how much you need to pay.

• As a general rule, it’s a good idea to keep your monthly rent to about 30% of your after-tax income. 
• E.g. If your take home pay is $4,000 per month, aim to spend about $1,200 per month on rent. 

‍Bond: This is the amount landlords hold onto as security in case you significantly damage the rental property. Although it needs to be paid upfront, if all goes smoothly when your lease ends this amount will be returned to you in full. 

• The bond is usually equal to 1 month’s worth of rent.
• E.g. If your monthly rent is $1,200 per month, the bond will likely be $1,200 as well.

Utilities: Gas, electricity, water, and internet don’t come for free, but if you have a housemate you can arrange to split the costs! Here’s an idea of the average monthly utilities in Melbourne: 

• Electricity - $97 per month
• Gas - $62 per month
• Internet - $72 per month
• Water - $64 per month 

‍The Hidden Costs 

You don’t know what you’ve got till it’s gone, and living out of home ain’t cheap! 

‍Food: While you’re living at home you probably had food provided pro-bono. Now you’ll likely have to pay for your own meals - this can range from groceries, ordering take out, and going out to restaurants. So depending on your lifestyle, you may need to budget more for food expenses!

In Australia, a single person will typically spend about $100 per week on groceries.

‍Transport costs: Do you own a car? Rental properties with car spots often cost more, alternatively you may have to pay extra for one if your rental property doesn't come with a spot. If you’re leaning into the public transport life, you may need to factor in additional transport expenses depending on your commute. On average, inner city properties that come with a car spot cost an extra $40 per week On the other hand, Australians are also spending about $40 per week on public transport.

Everyday supplies: There’s more you ask? Absolutely. Ever wondered how much soap, paper towels, shampoo/conditioner, laundry detergent, toilet paper and everyday cleaning supplies cost? Well you’ll find out, cos now they’re your responsibility too!

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Next Steps…

Once you’ve saved enough to cover the basics and your budget has a line item for each hidden cost, you’re ready to seal the deal on your property lease and move out of home. 🚚📦

Flux has a free budgeting tool that can help track all your expenses as you’re moving out of home. Now that you’re becoming financially independent for the first time, it’s even more important that you practice good financial hygiene so you can always be across your spending!

Look out for part two of ‘The Ultimate Financial Guide to Moving Out Of Home’, where we’ll be unpacking the cost of the move and things you need to know about setting up your new home!