Moving Out? How to Prepare Financially
When you’re living with your parents, the thought of moving out means independence and the ability to make your own choices. For many young people, the day can’t come quick enough. But, there are many financial responsibilities to living on your own, and many people find they’re unprepared for them. So, what do you need to plan for before moving out?
Living Expenses
It’s important to educate yourself on all of the living expenses you’ll need to pay once you’ve found your own place. Of course, you’ll need to pay rent but you’ll also have to pay for utilities, like gas, electric, phone and internet and many more. There are also upfront costs to moving out. You’ll likely have to pay the first months’ rent, a security deposit and set up renter’s insurance. Find out how much you’ll need to secure your chosen apartment and stay with your parents until you have sufficient funds.
Plan a Budget
You’ll never really know the expense of living on your own until you do it, but that doesn’t mean you can’t plan ahead. Get some average costs of how much bills are likely to be. Think about what you’re likely to spend on food every week and how much you may pay for laundry services. What will it cost to keep your car on the road or use public transport every day? When you rent an apartment with City Wide Apartments, you have the option of paying online, which means you can keep a closer eye on what you’re spending. It’s also best to overestimate your payments than underestimate them and find you’re struggling.
Pay Your Parents Rent
If you really want to know what it’s like to live in the big wide world all alone, you can start at home. Start by paying your parents rent and then move onto paying them your share of the utilities. It’s one of the best ways to test whether or not you can’t really afford to support yourself financially. If you’ve never paid a bill before because your parents take care of everything, you may find being on your own hard work.
Emergency Fund
When you move out, you’ll soon find that things crop up when you least expect them. For example, you may have to put your car in the repair shop or your friends may ask you to join them on a holiday. Having an emergency fund will mean you’re covered when the expected arises. Discipline yourself to always put a percentage of your wage into your emergency fund.
Pay Off Debt
The less debt you have, the more disposable income you have. So, it makes sense to lower your debt as much as possible before leaving your parents. Having less debt will also make you look more attractive to potential lenders should you want to get a mortgage or loan in the future.
The better prepared you are for your first home, the easier it will be. After all, no-one wants to run back to their parents after a month of freedom.
