Leaving home brings with it new financial responsibilities. Whether you plan on sharing a house or setting up home on your own, you will more than likely have to pay for things you've never had to think about before.
Your money may have to go further but if you take the time to take control of your money, understand your income and expenses, and have a plan, you will enjoy your newfound independence.
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The bottom line
- Think about your income and expenses and have a plan.
- A budget will help you control your money.
- Think about insuring your valuables.
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How much will it cost?
Before you move out, work out how much it will cost to move and set up your new home. Will you need to hire a moving van or pay for a removalist? Will you need to buy or hire any furniture or appliances? Will you use public transport or need to buy a car? Also think about your first grocery shop.
You will probably need to pay a security deposit, known as a bond, to your landlord before you move in. This can be up to four weeks rent for an unfurnished place and up to six weeks rent for a furnished one.
The bond is your landlord's security against damage to the property. If you damage the premises or do not pay the rent you could lose your bond. You could also get a record as a bad tenant. This could make it harder for you to find another place to rent.
You will also need to pay your first rent instalment before you move in, and pay a bond or connection fee for phone, gas and electricity.
You can use a budget to help you manage your expenses. See Budgeting.
Don't forget your ordinary living costs for food, clothes, education, health care and entertainment.
Insure your valuables
It really hurts if you have to replace uninsured goods after a robbery or fire. Make sure you know up-front what you are covered for so you don't have a nasty surprise if you have to make a claim. If you have a lot of CDs and DVDs, computer equipment or musical instruments, make sure your policy will cover the cost of replacing them.
Shop around for an insurance policy that suits your needs.
It is important that you answer all questions the insurer asks you as accurately and completely as possible. This is called your 'duty of disclosure'. If you do not answer them properly, your insurer may be entitled to refuse to pay any claim you make. See Insurance.
More information
You can find out a lot more about decisions to make if you're leaving home. See More information.