The cost of adulting: moving out of your parents’ house

Some of us often entertain the thought of moving out of our parents’ home. However, moving out of our parents’ home may only feel like an attainable dream, in the long run. While many of us (especially those of us who are single and in our 20’s) may not have the financial means to move out of our parents’ home immediately, some of us who have the means may be tempted to move out of our parents’ house soon. Even though the grass is often greener on the other side, it’s important to weigh out the costs of moving out of your parents’ house. We will explain the financial costs of moving out of your parents’ home.

What are the financial costs of moving out of your parents’ house?

You might be asking, “is it possible to move out of your parent’s house with no money?” You can move out of your parent’s house by requesting to move in temporarily with your relatives. But that will merely be viable for the short term. You will need to factor in the financial costs if you want to move out of your parent’s house over the long term.

Renting costs

An important question to ask is, what are your accommodation options if you are looking at moving out of your parents’ house?
For most of us who are single and below the age of 35, our only option will be to look at renting a room or house when we move out of our parents’ home unless your parents are willing and have the means to help to finance a private apartment for you.

The rental cost that you’re paying is influenced by factors, such as location, ease of accessibility to amenities and public transport, size of the room or house, and so on. Your monthly rental expense will likely be the biggest recurring financial cost when you move out of your parents’ home. You may need to do some budgeting to evaluate if renting a room or house is a financially viable option for you.

Also, do take note that most landlords require a rent deposit to be made prior to you moving in. The rent deposit is usually around 1 month rent for a 1-year lease and 2-month rent for a 2 year lease.This means that your rent deposit can be a huge initial out-of-pocket expense.

Furnishing expenses

Why do you have to pay for furnishing expense if you move out? If you’re lucky, you may find yourself renting a room or house that is already well-furnished. However, if you’re not so fortunate, you may have to spend a sizeable amount of money on new furniture and electrical appliances.You will need to come up with an inventory of furniture and appliances that you may need to purchase to assess your additional furnishing expenses.

Transport costs

Kudos to you if you’ve found a room or house at an affordable rental price! But the location of house is at a far-flung part of Singapore (which explains why the monthly rental is affordable). In this case, moving out means you have to factor in higher transport costs if you have to commute regularly to work.

It’s also a question of how comfortable on commuting over long distances, On good days, you may be able to sit through the public bus without complaining that you are waking up 30 minutes earlier than usual. On other days, you will rather take a private hire car because you need that additional 30 minutes of snoozing time.

Food costs

Some of the best things in life we have now are often things we take for granted for. Home-cooked food is one of them. While mom’s cooking may be the best, what makes it good is that we get to save on food costs (assuming your mother pays for the groceries). Once you move out of your parent’s home, you may need to factor in the additional costs that come with cooking your own or eating out. And we know that eating out regularly can be expensive as the costs will add up. Assuming you frequent the coffee shops or hawker centres across 3 meals, eating out can cost up to S$18 a day1. It’s also common to hear your friends or colleagues commenting on how food prices are no longer as cheap as before.

Household and utility bills

Unless you provide a monthly allowance to your parents, you would have enjoyed the luxury of Wi-Fi and air-conditioning at the courtesy of your parents. When you rent a room or house, you will need to pay for the household and utility bills as well. Even though the household and utility bill are usually shared amongst the tenants, this is still an additional cost that you need to settle.

Is it worthwhile to move out of your parent’s house?

Living independently comes with its perks. However, it also comes with its costs. You will need to weigh out the costs associated with moving out. After all, budgeting is one of the most important responsibilities of adulthood. This is because the costs of moving out comes on top of your existing financial obligations, such as providing allowance to your parents, paying for your insurance etc.

We know the responsibilities of adulting can be huge. At the end of the day, you will have to decide for yourself what is financially sound and sustainable in the long run.
However, is financial cost the only cost that you have to consider when you move out?

Food for thought: At the end, moving out is not merely a financial decision. You will also need to consider the relationship with your family members. While there may be fully legitimate reasons for moving out, but moving out is a form of “opportunity cost” incurred when it comes to time spent with your loved ones.