- It’s important not to rush to leave home. Weigh all the physical, emotional and financial implications of moving.
- Stay home for as long as possible and aim to save up three to six months of your monthly expenses.
- When it comes to Black tax, set firm financial boundaries that allow you to help your parents without impacting your goal for financial freedom.
There isn’t a more exciting yet daunting time than the first time you move out on your own.
Leaving home to become an independent adult is a step that while many look forward to since it’s an opportunity for self-discovery and to create your own traditions, stepping out on your own and taking care of yourself financially can be scary.
Vashnie Sithambaram, a clinical psychologist practising at Netcare Akeso Umhlanga, says that with proper planning and the help of supportive parents, this milestone can be accomplished with minimal anxiety.
“Moving out of home is undeniably one of the most significant transitions in a young adult's life. It marks a pivotal moment of independence and self-discovery, offering boundless opportunities for personal growth and new experiences. While it can be daunting to venture into uncharted territories, it's also an exhilarating journey filled with endless possibilities.
“As you embark on this adventure, feeling excitement and apprehension is natural. However, with the right mindset and preparation, this transition can be transformed into a time of happiness and fulfilment,” Vashnie says.
Getting into the right mindset and careful planning is paramount to successfully transitioning to independence. But making sure your finances are in order and that you’ll be able to cover your expenses is essential for a smooth move.
- Don’t rush to leave home. It’s a momentous decision, so plan for it well in advance.
- Consider things like finances, accommodation and what support is available to you.
- Speak to others who have successfully navigated the challenges you may face. Learn from their experiences.
- Ask yourself about the physical, financial and emotional advantages or disadvantages of moving out and see how your answers align with your goals.
- Acknowledge that stress, anxiety, panic, loneliness, depression or homesickness are all normal emotional responses to a change or adjustment period.
- Not knowing how to run a new home, finding a job and being financially secure can be stressful. Even the most confident people have these same fears. Reach out to your support systems for help.
TRUELOVE spoke with Tsungai Masendeke, a certified financial planner, to tap into exactly what is needed to get you on the right track with your finances as you prepare to move out.
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Knowing when you're ready
Being on your own offers all the perks you could ask for – who says you can’t have breakfast for dinner?
But the financial responsibility of independence is something not to be glossed over, especially with rising costs of living and a shaky economy. As much as one might want to move out from rules and pressures of living with parents, Tsungai advises to stay home for as long as possible.
“This will allow you to save towards an emergency fund that can give you a financial respite in difficult times. You should try to make sure that your emergency fund is at least three to six months’ worth of your monthly expenses.
“This means that if your monthly expenses are R20 000 each month, your emergency fund should be at least R60 000. Another thing, you want to make sure you raise before you live on your own is the rental and at least a month’s deposit to make sure that you will be able to pay.”
Save, save and more saving
This may seem like a given, but many underestimate just how expensive living on your own can be – six months’ worth of monthly expenses is a big chunk of change and that hasn’t even considered furniture for your future abode.
“You might always want to make sure you have enough money saved for furnishings,” Tsungai says. “The cost of a microwave, a bed and a TV can easily add up and you do not have to use credit to fund these, given that the prime lending interest rate is currently at 11.75 percent, you will pay even more for consumptive debt such as household goods.
For those considering buying property over renting, make sure you’re prepared for all the upfront costs like deposits, mortgage repayments, lawyer’s and conveyancer’s fees.
“A good guideline I advise my clients to use is to save at least 10% of the value of the house. This means that if you want a house that is worth R1 500 000, you should try to have at least R150 000 saved to pay for the upfront costs,” Tsungai advises.
Standing on your own two feet and surviving Black tax
Some have had the privilege of tasting independence whether it’s been through boarding school or residence or student accommodation living in university.
But for many in South Africa’s polarising economic climate, they need to stay home since their parents or caretakers are financially dependent on them.
“Being the first generation to go to university and finish school, Black tax will be waiting for your pay cheques, month in and month out. It is important to establish financial boundaries with parents and caregivers in terms of your true affordability,” Tsungai warns.
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“If what you can afford each month is only R1 000, do not be ashamed to make that [known] to them … Have that tough but honest conversation earlier on in your working career and set healthy financial boundaries that will allow you to help your parents without compromising your ability to strive towards financial freedom.”
