Being young and having financial independence

Getting out of the shelter of mum and dad can be a scary prospect. But in the end, finding your financial independence is what being a young adult is all about.

Establishing your financial independence

Sharing a house with another group of young people is almost a rite of passage in itself. It does not have to be a daunting exercise, however. We have compiled a list of things you should check off your list before you shoot through.

Budget

Money management is probably the greatest test you will face in your time out in the world. You are stuck at an awkward stage between finding independence and earning enough to support that independence. If you are still studying while you are out of home, you will have to strike a balance between work and your tertiary education.

Before you move out, expect the one-off expenses of bond and two weeks rent up front. Both of these are pretty much standard with every rental agreement. Ongoing costs include weekly rent, food, entertainment and transport. You’ll also have to front up utilities like electricity, gas, water and internet usually on a monthly or quarterly basis.

Sharing

Joining a share house in a cohabitation living arrangement can cut a great deal of cost. Sharing with 2 to 5 people definitely has its advantages. You can split the cost of bills, utilities and even go as far as splitting a food budget amicably.

Dwellings can be split as formal or informal living arrangements. Formal living arrangements are renting agreements that are signed by a contract. All rent, bills and utilities are to be split as drawn up in the contract or lease. Informal living arrangements are when you rent or sublet part of a house from another tenant, but are not on the lease. This can be a flexible informal arrangement between friends, but we aware that nothing is legally binding. It is wise to draw up a written agreement of rules between parties.

Get the following things in order before you begin to pack the car.

Your checklist

1. Utilities – find out what you need in your new home

2. Furniture – happy days if the place is furnished. If not, you can make your own mark

3. Removalists – if you don’t want to pay for a removalist, you can hire a ute or reach out to family and friends

4. Research your immediate area – find out where supermarkets, public transport, hospitals and other important landmarks are if you aren’t familiar

5. Bills – sort out what you will be spending each month. It’s much better than winging it

6. Get rid of unwanted items – it’s better to travel light. Sell what you don’t need and have a little extra coin to support yourself

7. Consider insurance – you may not be able to afford it when you first leave, but renters and health insurance will be necessary as you get older

   Shooting through seems like a terrifying ordeal to undertake. But if you feel like you need to make an escape, don’t waste another month in limbo. You will never find you feet if you don’t jump first!

– Rory Callaghan