Wise to move out?

[lola7]

So I’m (23M) still living with my parents in Dublin but have recently considered moving out and renting. I don’t dislike living at home but I’d just rather the freedom of my own place.

To be very honest I have not been great with my finances, though I do budget every month I always find myself going over budget and not saving anywhere near as much as I should be. I’m not sure if this makes sense, but I genuinely believe it’s largely due to the fact that I’m living at home and thus don’t have great financial responsibility. Therefore I can afford to be a bit careless with my spending (though I know I shouldn’t be).

I currently gross 35k so I’m netting about 2.4-2.5k a month. My fixed expenses are around 650 at the moment (300 being “rent” I pay my parents). I expect my salary to increase significantly at the end of this year as I’ll be exam qualified as an accountant.

So basically, I have 2 questions for anyone else that may have moved out before.

1) do you believe that moving out and living on your own helped you become more financially responsible and save more?

2) based on the limited information I’ve given, does moving out sound like a good idea?

 

[jesrdking]

@lola7 What are you spending €2.5k per month on?
Break it down and work it out because if you can’t slash that spending drastically, you will certainly not be able to survive financially outside of your family home.

 

[lola7]

@jesrdking Aside from my fixed expenses which are all necessity, I largely spend on food (lunch while in the office and takeout/restaurants) and leisure. Could drastically cut down on takeout and leisure I believe.

 

[jesrdking]

@lola7 You don’t need to break down all the figures here but you need to do it yourself and as an accountant, that should be easy.
The 50/30/20 rule is good to read.
50% needs, 30% wants, 20% savings.

https://www.irishlife.ie/blog/what-s-the-50-30-20-rule-and-how-can-it-work-for-me/

It sounds like you have
25% needs, 65% wants, 10% savings or something crazy like that.

If you move out, your ‘needs’ are going to go waaaaay up, so your ‘wants’ are going to have to come waaaaay down.

 

[kingdomsound]

@lola7 Do you buy lunch when working? That adds up bud, and restaurants these days are a special occasion for me. Advance your cooking skills, cook a good size meal so you can bring to work the next day. I'd look forward more to the leftovers from what I cooked the night before, then going to some deli, even a sandwich made with love at home is better than any deli for me. Best of luck

 

[lola7]

@kingdomsound Yeah definitely this is a large expense for me as I’d be spending like a 10er a day at least on lunch which would add up to 220ish a month.

Will definitely have to start cooking if I intend on moving out anytime soon.

 

[resjudicata]

@lola7 If you're going over budget while living at home moving out is a terrible idea tbh.

In your situation moving out would be a poor financial decision.

 

[resjudicata]

This is it.

Get yourself in order financially before moving out. If you can't stick to a budget now how're you supposed to with bills (expected and unexpected) when they're coming your way?

 

[lola7]

@resjudicata Thanks both

And on my first question, do you not think that the increased financial responsibility will help with saving? Or is that just not how it works in reality.

 

[resjudicata]

@lola7 Why not set a budget more strict than what you're currently doing and see if you can stick to it for a couple of months?

I understand the want to get out and get your own space I'm in the same situation but you really have to know how financially responsible you can be before going out on your own.

You need to be non negotiable with your savings.

 

[lola7]

@resjudicata Thanks that makes sense, I’ll try that

 

[aktsumi]

@resjudicata On the other hand moving out can make you more responsible at least it did for me, might not be immediate but pressure is a good motivater

 

[lilybelle]

@lola7 Remember once you move out, you will have other expenses that you never really think about when living at home.

Stuff like broadband which can easily cost you €300 a year or waste disposal which can add another €150 a year. One takes stuff like this for granted when living at home. So make sure to plan accordingly.

 

[lola7]

@lilybelle Thank you

 

[sheenask]

@lilybelle This

 

[rubyredsun]

@lola7

So basically, I have 2 questions for anyone else that may have moved out before.

1) do you believe that moving out and living on your own helped you become more financially responsible and save more?

2) based on the limited information I’ve given, does moving out sound like a good idea?

On the first point, 100% yes. Between 19 and 35 I lived mainly in house shares, but lived with my parents on two occasions for 6 months to one year. It was very positive for my maturity and personal development. I met a lot of nice people, and had relationships with some of them.

When living at home I found I reverted to being a teenager. I was sulky with my parents, spent a lot of time in my room, and got a bit depressed. So I moved out again for my sanity.

By contrast, I've a brother that's 36 and never moved out. He's a man child, I fear for him when my parents pass away. Don't be like him, move out while you're still young

 

[inthefathershouse]

@lola7 Not been great with finances but studying to be an accountant. Not a great mix my friend

 

[lola7]

@inthefathershouse I’m trying

 

[spiritsight]

@inthefathershouse Don’t really get this stereotype tbh. Just because accountants do audit, taxes and stuff doesn’t mean they have to be stingy af

 

[inthefathershouse]

@spiritsight Nothing at all about being stingy. More about being aware about money, budgets and savings etc.