Tips for students saving to move out of home
One of the exciting things about being a student is moving out of home. It’s a new experience that comes with new challenges and responsibilities, and is a big part of learning to do adult things! But it is a good idea to save before moving the big move out of the folks’ place.
Here are some tips to help you get your funds together for moving out of home.
Plan before you move
You can’t start budgeting for the big move out of home without knowing where your money will be going. Therefore, it’s a good idea to make a list of bills and expenses and ensure you have the money ready when they start coming around. Are you on top of your student personal loans? Do you have any extra expenses that might add up when living out of home? All of these things should be factored into your savings plan before moving out of home.
Things to look out for in your potential new home
We all want to move into swank, inner-city homes when first moving out, but it;s also important to ensure the potential home will match your budget and lifestyle requirements.
Things to look out for include:
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* Rental prices in the area you are looking to live in.
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* Whether bills are included in the rent or whether they come separately.
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* Whether there are good places to look out for outside of real estate sites i.e. Flatmates.com.au and Fairy Floss (Facebook).
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* Cost of new furniture & appliances.
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* Weekly expenses like food & entertainment & how they will fit into this budget.
If, when budgeting, you find that the costs are accumulating in a way that might surpass your student budget, you may have to adjust your plans a little to find a place that is most suitable for your needs. This might include finding a cheaper place or moving in somewhere with a few roommates who share the costs of the home.
The 50/30/20 rule is a saver’s companion
One thing that new renters have to consider when moving is how much to spend on each of their expenses. Thankfully, there is a budgetary model that can help this: the 50/30/20 rule.
This rule is based around the idea that you spend 50% of your income on essentials like rent, bills and food. The idea is that you don’t spend more than 30% of your income on rent so that you have money for other expenses and can increase your savings.
The next 30% is allowed for non-essentials, including things you might want to buy but don’t necessarily need. This is things like eating out, tech/accessories, clothing and memberships.
The final 20% can go towards savings. It’s nice to save, and it’s often still possible to do as a student. You can put these savings toward buying your first home or taking an unforgettable overseas trip in between semesters.
Money tracking apps are great value
Money tracking apps are a great way to know how much you are spending each week. There are plenty of apps out there that tell you how much you are spending, and personal banking apps are getting smarter, too. They can tell you how much you are spending on particular categories like rent, bills and entertainment, while also telling you how much you are spending against how much you are saving.
It’s all part of the experience
Saving to move out doesn’t have to be daunting. It’s just about knowing how much you are making and ensuring it’s going toward the right things. This way, you should still be able to have a little bit left over for future goals while enjoying all the fun of living out of home!
