Speaker 1: Good morning, everyone, and welcome back to Sugar Mamma's Fireplay.
Speaker 1: I am your host's financial planner, Cannah Campbell, and I
Speaker 1: am here to make sure that you start your Mondays
Speaker 1: off on a fired up, ignited note when it comes
Speaker 1: to achieving all of your financial goals and dreams. Now,
Speaker 1: today we're talking about preparing financially for moving out of
Speaker 1: home or even better, moving into your new home. I
Speaker 1: want to talk to you about the things that you
Speaker 1: should do before you move so that you are completely organized, prepared,
Speaker 1: and in control at all times of your money, and
Speaker 1: that you move correctly with a great sense of release.
Speaker 1: You can continue on making great progress with your own
Speaker 1: financial goals and dreams, and you have an underlying sense
Speaker 1: of security and faith in yourself. So let us begin.
Speaker 1: Welcome back everyone to Sugar Mommas five lay As I said, today,
Speaker 1: we're gonna be talking about how to prepare financially for
Speaker 1: moving out of home or actually moving into your new
Speaker 1: home when you have moved on from becoming a renter
Speaker 1: to actually being a mortgage holder. So these are the
Speaker 1: things that I recommend you do beforehand so that you
Speaker 1: are completely prepared. And just a quick reminder to everyone
Speaker 1: that this episode, as is all of my episodes, they
Speaker 1: are general in nature and never product personal investment or
Speaker 1: strategic advice at any time. So what do I recommend
Speaker 1: all right? Number one, you must do a budget before
Speaker 1: you move out. You need to understand what your real
Speaker 1: living expenses are and what you can afford. Now, what
Speaker 1: I recommend you do if you're moving out from home
Speaker 1: or you're moving from a being a renter into your
Speaker 1: own home is do a lot of time understanding what
Speaker 1: the new expenses include. I've had so many people through
Speaker 1: the Budget and cashuw Academy reach out to me and
Speaker 1: share with me that they sort of fell apart financially
Speaker 1: when they realized the ongoing expenses and just the consistent
Speaker 1: ongoing expenses of becoming a home owner. You know, when
Speaker 1: a dishwasher broke, instead of calling the landlord or the
Speaker 1: property manager, they had to pay for it themselves, and
Speaker 1: it was a huge shock to them and it was
Speaker 1: quite hard to overcome financially and did a bit of
Speaker 1: damage to their budget. So know this in advance, and
Speaker 1: know that you have to include in your newer budget
Speaker 1: expenses that you don't necessarily experience right now, and if
Speaker 1: you're wondering what they could be a great place to
Speaker 1: start is to obviously jump online, but also speak to
Speaker 1: family and friends. Family and friends that are you've already
Speaker 1: moved out of home and are now paying rent and
Speaker 1: understand that you have to pay for cleaning products and
Speaker 1: toilet paper, and internet and energy and sometimes gas, and
Speaker 1: home and contents insurance and sometimes fox cell. Speak to
Speaker 1: those people as they can give you a list of
Speaker 1: things that shocked them when they moved out of home
Speaker 1: for the first time. And for renters that are about
Speaker 1: to move into their first home as a homeowner, speak
Speaker 1: to people who have a mortgage and are living in
Speaker 1: their home and ask them what expenses did you find
Speaker 1: caught you by surprise? Wear and tear, new carpet, maybe
Speaker 1: damage to the home, things that need to be replaced,
Speaker 1: new fridges and freezers, the strata, the home and contents, insurance,
Speaker 1: water bills, council rates, all those things that you may
Speaker 1: have just not known about innocently because you were renting
Speaker 1: or you had the comfort luxury of living at home.
Speaker 1: So do a new budget includes all of these expenses
Speaker 1: and of course round everything up to them when there
Speaker 1: is ten dollars twenty dollars, fifty dollars, one hundred dollars,
Speaker 1: or even one thousand dollars, so you have some safe
Speaker 1: buffers in place, because even though you're doing as much
Speaker 1: as you possibly can to make sure that your budget
Speaker 1: is very accurate, there could quite possibly be something that
Speaker 1: catches you buy surprise that is particularly unique for the
Speaker 1: home or the property that you are about to move into.
Speaker 1: Next thing I recommend you do, and this is probably
Speaker 1: the number one most important tip of this episode, and
Speaker 1: that is dress rehearsal, practice practice the new budget before
Speaker 1: you move. So if you are living at home, practice
Speaker 1: paying rent, have the equivalent coming out of your everyday
Speaker 1: account is what you would pay for rent, and have
Speaker 1: that rent money go into a separate, dedicated savings account
Speaker 1: so it feels real. This will be a quick eye
Speaker 1: opener to see if you are really ready and can
Speaker 1: financially afford to move out of home. And of course
Speaker 1: there are people in situations who have to move out
Speaker 1: of home. It's not a choice, but this may then
Speaker 1: help you give you a great guide as to how
Speaker 1: much you can afford in rent, and it will also
Speaker 1: be quite an eye open to see all of the
Speaker 1: new expenses that come from moving out of home and
Speaker 1: how they quickly add up and perhaps where you need
Speaker 1: to maybe cut down on other lifestyle expenses that you
Speaker 1: were previously enjoying. By practicing before you get out there
Speaker 1: and do it will mean that you are so much
Speaker 1: more resilient, so much more prepared, and a lot calmer
Speaker 1: when it comes through handling any sort of sudden shocks
Speaker 1: or surprises. And the longer you can do this, the better.
Speaker 1: And the great thing about doing this is that you're
Speaker 1: going to force you to save up some extra money
Speaker 1: as well, because that special separate savings account that you've
Speaker 1: established for the pretend rent money or the new mortgage
Speaker 1: repayments can build up and then you can use that
Speaker 1: as emergency money, or use that to make a lumps
Speaker 1: on payment onto your home loan if you've got your
Speaker 1: redoor facility switched on. So if you are renting and
Speaker 1: you're paying, say three hundred dollars a week, and then
Speaker 1: you know that you're becoming a homeowner and you're going
Speaker 1: to be paying, for example, three hundred and fifty dollars
Speaker 1: per week, make sure you put a regular savings plan
Speaker 1: of fifty dollars per week or whatever the equivalent is,
Speaker 1: so that you can understand and feel what that true
Speaker 1: expense is before you make any major investment decisions, commitments,
Speaker 1: or financial decisions. And if you find this is too
Speaker 1: much and you've done something too early or too soon,
Speaker 1: you've got the benefit of knowing this in advance. So
Speaker 1: perhaps you delay moving out of home, or you find
Speaker 1: something that's more cost effective, or you find a home,
Speaker 1: or perhaps you decide, instead of moving into the place
Speaker 1: that I've just purchased, I'm actually going to rent it
Speaker 1: out for six months to buy me some breathing space
Speaker 1: so I can get back on top of my emergency
Speaker 1: money or any other debts, or I can give myself
Speaker 1: more time to help prepare for the new outgoing expenses
Speaker 1: that come from owning a property. The dress rehearsal is
Speaker 1: something you will not regret. Number three furniture. Moving out
Speaker 1: of home is so exciting and one of the nicest
Speaker 1: things about moving out of home is it's such an
Speaker 1: exciting chapter of your life because you're really starting to
Speaker 1: take control and design your life and our home. Where
Speaker 1: we go home, we sleep, we feel safe, we switch off,
Speaker 1: we relax, where we reach out to our batteries. It's
Speaker 1: a very sacred space. So a lot of us naturally
Speaker 1: want to style and decorate our home. Now, buying furniture
Speaker 1: can be incredibly expensive, but it doesn't necessarily have to be.
Speaker 1: So understanding that where you can source furniture in a
Speaker 1: financially savvy way is so worthwhile. And I will also
Speaker 1: say knowing where you should splurge and where you should
Speaker 1: save is also worthwhile. Of course, we have gum true,
Speaker 1: we have Facebook Marketplace, We have so many accounts on
Speaker 1: Instagram selling furniture or even beautiful designer pieces of furniture
Speaker 1: at the fracture of the prices. So make sure you
Speaker 1: try and save some money where you can and know
Speaker 1: what you're prepared to buy. We love to save some
Speaker 1: money and have you know that beautiful dining table your
Speaker 1: dreams or that beautiful comfortable soul through your dreams versus
Speaker 1: where you actually do need to buy something brand new.
Speaker 1: For example, for me personally, I'd never buy a pre
Speaker 1: loved mattress. I value a good night's sleep. I want
Speaker 1: a really good quality mattress where I can feel comfortable,
Speaker 1: my muscles can rest and recharge. So for me, I
Speaker 1: will happily buy a prelove sofa or dining table or
Speaker 1: coffee table. If it means I can have money enough
Speaker 1: money set aside, then invest in a good quality mattress.
Speaker 1: So use this time to research and explore. And if
Speaker 1: you ever want to know where I sauce beautiful furniture
Speaker 1: at a fraction of price, send me a DM on
Speaker 1: Instagram and I'll link all the accounts for you. Number
Speaker 1: four D clutter. So moving is a great opportunity to
Speaker 1: go through your stuff. Well you kind of have to
Speaker 1: go through your stuff to pack it up, But go
Speaker 1: through your clutter and go, Okay, what actually can I
Speaker 1: get rid of and what can I actually sell and
Speaker 1: make some extra money. And of course that money that
Speaker 1: you raise can go towards your emergency savings account and
Speaker 1: help make sure that you are far more prepared and
Speaker 1: financially resilient in moving. Or perhaps that money can go
Speaker 1: towards making a few mortgage repayments into your property before
Speaker 1: you even moved in, so you're really ahead of the game.
Speaker 1: But sit down and go through the things that you
Speaker 1: can sell. And the one bit of advice I can
Speaker 1: give you right now is someone who has a few
Speaker 1: things listed online at the moment is selling sometimes takes
Speaker 1: a while. You don't want to be in a position
Speaker 1: where you have to dramatically and drastically drop your prices
Speaker 1: just to quickly get things sold because they're not moving
Speaker 1: fast enough. Understand it may take time. So the quicker
Speaker 1: you can list things, the better. And remember, one man's
Speaker 1: trash is another man's treasure. And the more we can
Speaker 1: sell to the circular economy, the less we are putting
Speaker 1: in landfill. So feel good financially, but also feel good
Speaker 1: from an environmental point of view. Number five bills. I
Speaker 1: know I've already touched on the importance of the new
Speaker 1: bills that are going to be creeping in your life
Speaker 1: when it comes to renting and being a mortgage homeowner.
Speaker 1: But can I share with you a brilliant hack bills,
Speaker 1: and that is to be ahead, be ahead of those bills.
Speaker 1: So what I share with people in my budget and
Speaker 1: cash Flow Academy is a really clever hack where you
Speaker 1: take those irregular bills such as the quarterly bills, and
Speaker 1: pay them not only monthly, but one month in advance,
Speaker 1: so that when that bill comes in it's zero dollars. Owing.
Speaker 1: For example, our water bill averages around about three hundred
Speaker 1: and sixty dollars per quarter. So not only do I
Speaker 1: pay one hundred and twenty dollars per month using the
Speaker 1: biller code, because Sydney Water is a quarterly bill, I
Speaker 1: have paid it one month in advance. Now, initially this
Speaker 1: is a little bit harder to do. It's a bit
Speaker 1: of a stretch because you're having to almost pay two
Speaker 1: months upfront. But once you've done it, it's brilliant. It's great,
Speaker 1: and I don't need to think about it. I just
Speaker 1: automatically do this every single month. That money when I
Speaker 1: get paid, goes to Sydney Water, and I do the
Speaker 1: same thing with my other quarterly bills. I've also got
Speaker 1: the same thing going with my energy bills and my
Speaker 1: gas bills, but they come out on a monthly basis
Speaker 1: because my energy and gas provider allows this. But you
Speaker 1: don't have to wait until that quarterly or bi annual
Speaker 1: or annual bill comes in. You can actually pay it
Speaker 1: monthly and even a month in an advance, so that
Speaker 1: you never actually owe any money. And this can be
Speaker 1: really good for your credit score as well, because it
Speaker 1: means that it's highly unlikely that you're going to miss repayment.
Speaker 1: Because you're creating consistency in your budget and cash flow,
Speaker 1: you're less likely to forget about a bill accidentally, and
Speaker 1: of course it makes it so much easier to stick
Speaker 1: to your budget because you don't have those that volatility
Speaker 1: or that irregular expense that can sometimes catch us by
Speaker 1: surprise because we're not properly prepared for it. So treat
Speaker 1: your bills by paying them upfront and being ahead and
Speaker 1: break them down in the same cycle as you get paid,
Speaker 1: such as monthly. Tip Number six is removal US. Now,
Speaker 1: removal less can be incredibly expensive and there is a
Speaker 1: wide range of different services and therefore different costs, So
Speaker 1: do your research in advance. You do not want to
Speaker 1: be having to pay a fortune to a removal ust
Speaker 1: because you didn't book it in time and everyone's booked out.
Speaker 1: Understand there are certain days of the weeks where they
Speaker 1: charge a premium. So if by doing this you can
Speaker 1: actually try and strategically time your move to be a
Speaker 1: lot more cost effective. Also, understand on what you can
Speaker 1: do is to be creative when it comes to that move.
Speaker 1: What can you do yourself? Can you swap cars with
Speaker 1: someone for the day, or can you lean on a
Speaker 1: friend to help you, or can you go and rent
Speaker 1: a ute or a van for the day to help
Speaker 1: move items safely without them getting damaged or injuring yourself
Speaker 1: in order to save some money. And of course when
Speaker 1: you look at those removalus, look at it the way
Speaker 1: that they're charged. They charge a flat fee per day
Speaker 1: or do they charge by the hour, whichever way you go,
Speaker 1: try and look at it as a way of saving money,
Speaker 1: because the more you can do yourself, they say over
Speaker 1: a weekend or getting up earlier in the morning and
Speaker 1: doing as many trips as you can, you're going to
Speaker 1: save a lot of money. And also it means you
Speaker 1: can just leave those bulky heavy lifting items to them
Speaker 1: because they are the experts. But there are lots of
Speaker 1: different options, and I have to say I'm saying it's
Speaker 1: not necessarily as a financial tip, but more of as
Speaker 1: an environmental one. Some removalists now have reusable boxes, so
Speaker 1: you don't need to go and buy cardboard boxes, which
Speaker 1: end up being they do guess get recycled, but sometimes
Speaker 1: they do get wasted and not properly recycled. Some of
Speaker 1: these removal us have these big green boxes which they
Speaker 1: drop off to your house two weeks beforehand to allow
Speaker 1: you to plan and prepare to make that move happen
Speaker 1: efficiently and waste as little money as possible. So being
Speaker 1: organized is well worth your time. And then tip number seven.
Speaker 1: This is really important if you want to stay in
Speaker 1: control and be organized at all times, and that is
Speaker 1: the moment you can make sure you go and update
Speaker 1: all of your details. Update you're addressed EE, with your
Speaker 1: superannuation company, with your insurance company, make sure your bank
Speaker 1: is sending your statements assuming you're getting them in the
Speaker 1: mail to your new correct address. Not only is this
Speaker 1: going to help make sure that you stay organized and
Speaker 1: informed as to where your money is, it's also going
Speaker 1: to help reduce the risk of identity theft. You want
Speaker 1: to make sure that you can stay on top of
Speaker 1: and track everything that involves your financial situation, whether it
Speaker 1: be a savings account, an investment portfolio, of superannuation portfolio.
Speaker 1: You need to make sure that that information goes directly
Speaker 1: to you at your correct address. This is why there
Speaker 1: is one point four billion dollars sitting with ACID right
Speaker 1: now in their unclaimed money fund, and most of those
Speaker 1: situations are where people have forgotten to update their contact details,
Speaker 1: so be organized. Write a list of all the people
Speaker 1: you need to get in contact with and update those
Speaker 1: details to the correct details as soon as you possibly can.
Speaker 1: This will also make you feel so much better about
Speaker 1: yourself because you'll know exactly where your money is, how
Speaker 1: much you've got, where it's invested, what policies you've got
Speaker 1: in place to protect you. And this sense of clarity
Speaker 1: will also help give you a greater sense of purpose
Speaker 1: and direction well into the future. So that is it
Speaker 1: for today's episode. Please feel free to send this episode
Speaker 1: to anyone you know that is thinking of moving out
Speaker 1: of home, or anyone that is renting right now and
Speaker 1: is wanting to become a homeowner. This will help give
Speaker 1: them so much more financial resilience, stability, and peace of mind.
Speaker 1: I cannot stress enough the importance of that practice that
Speaker 1: dress rehearsal in making that transition happen. It's something that
Speaker 1: I did personally for myself, and it allowed me to
Speaker 1: really understand what my new expenses were going to really
Speaker 1: look like as a homeowner, and that practiced dress rehearsal
Speaker 1: money yes that got saved up, and in fact I
Speaker 1: was able to make my first mortgage payment before I'd
Speaker 1: even moved into the property, so it actually saved me
Speaker 1: tens of thousands of dollars in interest and valuable time,
Speaker 1: which is something we all like saving. Alright, everyone, thank
Speaker 1: you so much for listening to today's episode. Until next Monday,
Speaker 1: Stay motivated, stay empowered, and never stop seeking new ways
Speaker 1: to achieve your financial goals and dreams. This is Sugar
Speaker 1: Mamma's fire.