Will you stay in a relationship just to save on housing costs?
Well, a Finder survey of 1,049 respondents revealed almost 1 in 5 (17%) have remained living with an ex-partner after breaking up due to affordability concerns.
The research found that 4% – equivalent to more than 800,000 people – are currently living with an ex to save money on housing costs or to avoid a costly move.
A further 1 in 8 (13%) lived with an ex in the past but have since parted ways.
Gen Z was more likely to share a home with an ex-partner due to cash flow worries – with a shocking 33% admitting they had, compared to 11% of Gen X and 5% of Baby Boomers.
Graham Cooke, head of consumer research at Finder, said facing the housing market as a single person is daunting.
He further said:
“Thousands of Australians decide to separate but remain living together for a prolonged period because they can’t afford to go their separate ways.
Living together as a separated couple could be very difficult unless you are on really good terms.”
The research also found that almost 1 in 5 (19%) women say they have remained shacked up with an ex, compared to 16% of men.
Cooke said it is often complex to part ways when mortgages and children are involved:
“Some homeowners worry that they will lose out if they leave the family home before any financial settlement but moving out doesn’t diminish your legal rights.
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It’s also incredibly difficult to find suitable accommodation in some parts of Australia right now so staying together under one roof might be the most realistic option in the short-term."
He also urged Aussies to build an emergency fund to safeguard against unexpected relationship breakdowns:
“During the honeymoon period of a new relationship very few people are imagining a time when they are no longer compatible.
An emergency fund helps people to be financially prepared for the good and the bad."
The research also showed that Australians in WA (22%) were more likely to have remained living with an ex after a breakup, followed by NSW (18%), and VIC (17%).
Tips to build an emergency savings fund:
Define your financial cushion: Determine how much you need for an emergency fund. Aim for 3-6 months' worth of living expenses to start. Breaking it down into smaller, achievable goals can help you stay motivated and track your progress.
Automate your savings: Make saving effortless by setting up automatic transfers from your transaction to your savings account. Consider using savings apps that round up purchases and transfer the spare change. This painless approach helps your emergency fund grow steadily.
Track your spending habits: Monitor your income and expenses to identify areas where you can cut back. Budgeting tools and apps can help you gain a clear picture of your financial situation. By reducing unnecessary spending, you can allocate more funds towards your emergency fund.
Explore additional income streams: Consider side hustles or part-time jobs to boost your savings. Selling unused items online or through garage sales can also generate extra cash. Increasing your income allows you to build your emergency fund faster.
Choose the right savings account: Opt for a high-yield savings account to maximize your earnings. Ensure the account offers easy access to your funds in case of an emergency. Regularly review your options to find the best savings account for your needs
