Moving out of the house for the first time is one of the biggest steps you will ever take in your life. Yes, it’s thrilling. Yes, it’s scary. And that’s what makes it such a perfect introduction to life on your own.
Living independently will take some getting used to, particularly when it comes to finances, but you can ease the transition with some strategic preparations. When it’s time to venture out on your own, these five tips can help you get a solid start:
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Move when you’re ready
First of all, if you’re not ready to move out, don’t. The fact that you have reached a certain age is not reason enough to fly the coop. Ensure you’re prepared for the realities of living independently. Think about your financial stability, and factor in the costs of your new home and lifestyle away from your parents. Honestly assess your situation, and take time to save money if necessary.
Start budgeting
It’s really never too early to learn how to budget, but you definitely need to understand the basics before moving out. Draw up an estimate of all your monthly expenses, and compare it to your income. Then, determine which expenses are fixed, distinguish between your needs and wants, and snip what you must. If you haven’t found a home yet, Interest.com recommends allocating about 28% of your income for rent.
Drop the cable
Thanks to various streaming services one expense that’s easy to cut is the cable. There is all the entertainment you could ask for, and they cost a fraction of what a cable subscription costs. However, costs can quickly add up if you pile up à la carte channels that you never use. Only subscribe to the channels and features you need, and compare devices and apps to find your best option.
Automate your finances
Another great way to save money is to automate your finances. In short, automation simplifies the process of saving and allocating your money where you want it to go. Make sure you have a primary checking account and keep at least 25% of one month’s expenses in it at all times. Then, set your account up to automatically put a portion of each paycheck into your savings account. From there, you can set up automatic electronic payments for as many bills as possible.
Furthermore, you can even set automatic deposits for your retirement savings and investment accounts. Automation not only makes it easier to know where your money is going, but it can also save you from missing important payments and harming your credit score.
Develop good habits
Finally, if you haven’t already, you will want to start forming habits that are conducive to your independent lifestyle. Come up with a decluttering routine that helps you keep a comfortable living space each day, and do laundry at least once a week. Figure out what groceries you need for a healthy diet, work them into your budget, and look into meal planning. Also, make sure you’re going to bed at a decent time because your whole life is better if you’re well-rested and energized.
Proper preparations for your big move will make it an experience to cherish for the rest of your life. Remember to assess your situation to make sure you’re ready to go out on your own, and learn the fundamentals of budgeting. Figure out what expenses you can cut (like cable), and automate your finances to make saving and allocating your money easier. And start developing good habits that will help you succeed in an independent life. Most of all, take a deep breath and embrace the adventures that lie ahead!
The article above was a guest article by Brittany Fisher from Financially Well