Are you considering moving out of your home as a single young adult?
We often read about young people who have started earning money and want to move out of their homes for various reasons; they typically:
want to be independent
to live closer to their work
consider their family is toxic
Every time I read these posts, I often see overwhelming support. However, they rarely show the cost of moving out. Here are some considerations you can look at:
Disclaimer: Most values are computed and estimated using experiential knowledge and Internet research. Some details may be inaccurate, so you must see what works for you.
#1. Moving and Initial Setup
Before even thinking about moving out, check your savings. Do you have enough for the initial expenses? The initial cost can be expensive.
Cost of moving - Renting a mover can cost from P1,000 to P5,000.
Rent Advance + Deposit - Before moving in, you must pay a one-month advance and a two-month deposit. Ex. If your rent is P10,000, you must pay P30,000 at the get-go. Some rentals may also require post-dated checks (PDC) before you can move.
Initial set-up cost - You'll have to buy your foam, a water heater, an electric fan, a table and chair, etc. This may start from around P10,000.
These are rough estimates, but the initial setup can easily cost you P30,000. However, it can drastically decrease if you choose to live with housemates.
#2. Rent
Once settled in your new house, it's time to face the harsh reality of paying rent.
Since you moved out of your parents' house, you have revoked the benefit of living rent-free. If you live solo, you'll face a bigger cost than living with housemates. As a rule of thumb, you shouldn't pay more than 30% of your salary in rent alone because you have other things to pay.
This is a major expense for you from the moment you decide to move out.
#3. Utilities
Utilities like electricity, water, Internet, gas, trash, laundry, etc., are now your problem.
If you live solo, utility expenses will range from P2,000 to P5,000. Add this to your rent, and you'll see a significant portion of your income pie chart disappear. Not to mention your subscriptions, like Netflix, Spotify, etc, which cost around P500 to P1,000. However, you can minimize this by living with housemates.
Utilities are perpetual bills you'll face monthly; otherwise, pay the consequences of inconvenience.
#4. Groceries and Supplies
Since you'll be living alone, you now have to pay for your every meal.
If you're not used to grocery shopping, you'll soon be exposed to the reality of inflation. If you know how to cook, you'll have to buy your raw ingredients, toiletries, and cleaning supplies, which would cost from P1,500 to P3,000 per week, depending on your choices.
If you don't know how to cook or don't have access to a kitchen, you'll have to spend from P150 to P500 per day or P4,500 to P15,000 per month.
Summary:
In summary, depending on your capability, you'll choose between the budget pack, average, or solo-living every month:
Budget (with many housemates): P1,500 to P3,000 for rent, P1,000 to P2,000 for utilities, P3,000 for food and groceries, and P500 for transportation.
Average (with fewer housemates): P3,000 to P5,000 for rent, P1,500 to P3,000 for utilities, P5,000 for food and groceries, and P1,000 for transportation.
Solo Living: P8,000 to P15,000 for rent, P3,000 to P5,000 for utilities, P10,000 for food and groceries, and P1,500 to P3,000 for transportation.
Please note that values will differ from place to place, so you'll have to assess your capability first. If you don't have the money to be self-sustaining, you can delay your plan.