Moving out of your parents' home or a shared living arrangement can be an exciting yet daunting experience.
Financial independence, personal freedom, and the thrill of setting up your own space come with a range of responsibilities.
One of the most important factor to consider is the financial preparation.
In 2024, the cost of living, inflation, and economic conditions have all evolved, making it essential to plan your budget meticulously.
This article will provide you a detailed explanation of how much money you should have in 2024 when you move out.
When moving into a new apartment, landlords typically require a security deposit, which is usually equivalent to one month's rent, and the first month's rent upfront. Depending on the location and size of the apartment, this can vary significantly. For instance, the typical monthly rent for a one-bedroom apartment in the centre of a major city like Melbourne is about AUD 3,200$ Therefore, you should expect to pay around AUD 4,000 initially.
Hiring professional Melbourne movers can simplify the process, but it comes at a cost. Moving services in 2024 can range from AUD 300 to AUD 1,500, depending on the distance, the volume of items, and additional services like packing and unpacking.
Setting up utilities such as electricity, gas, water, and internet often involves connection fees. On average, you can expect to pay around AUD 300 to AUD 500 for initial setup.
If you are moving out of a rented property, you may need to hire a professional cleaning service to ensure you get your security deposit back. This can cost between AUD 150 and AUD 300.
In order to defray the expense of credit and background investigations, some landlords impose an application fee. This fee can range from AUD 50 to AUD 100.
Rent will be your most significant recurring expense. As mentioned earlier, in a city like Melbourne, expect to pay around AUD 2,000 for a one-bedroom apartment in the city center. In suburban areas, this might be slightly lower, averaging around AUD 1,500.
Monthly utility bills, including electricity, gas, water, and internet, typically amount to around AUD 200 to AUD 300.
Groceries and household supplies can vary based on your lifestyle and eating habits. On average, budgeting AUD 400 to AUD 600 per month is a reasonable estimate.
Whether you own a car or rely on public transport, transportation costs should be factored in. For car owners, consider fuel, insurance, and maintenance costs, averaging around AUD 300 to AUD 500 per month. Public transport users might spend around AUD 150 to AUD 200 monthly.
Renters insurance is essential to protect your belongings. The cost varies, but on average, expect to pay around AUD 20 to AUD 30 per month.
It's important to budget for leisure activities and dining out. Depending on your lifestyle, this can range from AUD 200 to AUD 400 per month.
Consider the cost of any subscriptions and memberships, such as streaming services, gym memberships, and magazines. These can add up to around AUD 50 to AUD 100 per month.
It's wise to include a portion of your income dedicated to savings, whether it's for future investments, travel, or emergencies. Aim to save at least 5-10% of your monthly income.
Should your flat be unfurnished, you will have to purchase furniture. Basic furniture (bed, sofa, dining table) and essential appliances (fridge, microwave, washing machine) can easily cost around AUD 3,000 to AUD 5,000.
Don’t forget the smaller items like kitchenware, cleaning supplies, and bathroom essentials. These can add up to around AUD 500 to AUD 1,000.
Personalizing your space with decor items like curtains, rugs, and wall art can add to your expenses. Budgeting an additional AUD 500 to AUD 1,000 can help create a comfortable and stylish living environment.
Basic tools and maintenance supplies are essential for any home. This includes items like a toolkit, light bulbs, batteries, and other repair essentials, which can cost around AUD 100 to AUD 200.
An often overlooked but crucial aspect of moving out is having an emergency fund. This fund should cover at least three to six months of living expenses in case of unexpected events like job loss, medical emergencies, or major repairs. For instance, if your monthly expenses total AUD 3,000, aim to have an emergency fund of AUD 9,000 to AUD 18,000.
Start by calculating your expected expenses, both initial and ongoing. Use the estimates provided above to create a detailed budget.
Set up a dedicated savings account for your moving fund. Automate monthly transfers to ensure consistent savings without the temptation to spend.
Examine your present spending patterns to find places where you might make savings. This could be cutting back on eating out, cancelling subscriptions that aren't being used, or spending less on entertainment.
To increase your savings, think about taking up freelancing or part-time work. Even a few extra hours per week can significantly accelerate your savings goals.
Evaluate your savings progress on a regular basis and make any budget adjustments. This will help you stay on track and ensure you reach your financial goals in time for your move.
Make sure you have a steady source of money that can support your needs. If your job situation is uncertain, it might be wise to delay the move until you have more financial security.
Use the estimated costs provided to create a detailed budget. Include all initial and recurring expenses, and don’t forget to account for an emergency fund.
Having a high credit score can facilitate the rental application process and lead to better rates on utilities and insurance. Examine your credit score and, if needed, raise it.
Compare prices for moving services, furniture, and appliances. To save money, look for deals and discounts.
Despite meticulous planning, unexpected expenses can arise. Ensure you have a buffer in your budget to accommodate these surprises.
Read the agreement carefully and make sure you understand all terms and conditions before signing. Look for clauses related to rent increases, maintenance responsibilities, and termination policies.
Establish a system for paying your bills on time, whether through automated payments or a reminder system. Late fees and missed payments can quickly add up and affect your credit score.
Sell, donate, or discard items you no longer need. This will reduce the volume of items you need to move, potentially lowering your moving costs.
If possible, consider moving without professional movers. Saving a substantial amount of money can be achieved by renting a truck and asking friends and family for assistance.
Save on packing supplies by using boxes from local stores, asking friends for spare boxes, or using items like suitcases and laundry baskets to transport belongings.
Moving during off-peak seasons or days can sometimes result in lower costs for moving services and rentals.
Don’t be afraid to negotiate rent or utility costs with your landlord. In some cases, you may be able to secure a lower rate or additional amenities.
If moving into a shared living situation, split costs with roommates. This can significantly reduce individual expenses for rent, utilities, and household supplies.
It will take serious financial planning and preparation to move out in 2024. By understanding the costs involved, building a solid budget, and saving diligently, you can ensure a smooth transition to your new home. Remember to factor in all expenses, from the initial moving costs to ongoing monthly bills, and don’t overlook the importance of an emergency fund. With the right financial strategy, you can enjoy the freedom and independence of your own space without the stress of financial uncertainty. Happy moving!
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