How to Prepare to Move out of Your Parents' House
Learn about cost of living., Determine your budget., Establish your credit., Build a financial cushion., Do a trial run.
Step-by-Step Guide
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Step 1: Learn about cost of living.
When you live on your own, you will have a lot of bills.
That is simply unavoidable.
Before you move, you'll want to research the cost of many things, including rent, utilities, food, and transportation.
Make a list of all of the things you use in your daily life (water, heat, internet) and then figure out how much those things cost per month in your city., You'll want to get a reasonable budget down on paper.
In addition to calculating how much you'll spend on essentials (rent, heat, etc.) make sure to put the non-essentials into your budget, too.
For example, figure out how much you spend on entertainment each month.
Love to go to the movies? Factor that in.Make sure you know how much money you actually make.
If your income varies from month to month, use a lower number when creating your budget.
You don't want to get caught short.You'll also want to factor in transportation costs to get around your new neighborhood.
Try to figure out how much you will spend on gas and public transportation.
Make sure to build in some "fun money" to your budget each month.
There should be a little flexible spending.
Everyone needs to splurge on pizza after a bad day at work once in a while.
Don't be afraid to adjust your budget as you go along.
Prices will fluctuate, and so will your income and priorities. , Your credit is an important part of your financial independence.
Before you live on your own, make sure that you not only have established credit, but that your credit score is good.
To establish credit, you might want to consider getting a credit card.
Research different types, and pick one that is best for you.
You'll want to make sure to pay your bill on time each and every month.
You can ask your parents to put your name on one of the household bills.
For example, if your name is on the cable account, that can help to establish your credit. , What will you do if your car breaks down? What will happen if your boss cuts your hours at work? Unfortunately, these things happen.
That is why it is important to have some emergency funds set aside.
When you are first setting out on your own, your goal should be to have at least $500-$800 set aside in case of emergency., Before you make your big move, take a month or two to practice your new found financial responsibilities.
Set up your budget and stick to it.
You can even go so far as to pay rent to your parents, in preparation for paying a landlord.
It's unlikely your parents will resist! -
Step 2: Determine your budget.
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Step 3: Establish your credit.
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Step 4: Build a financial cushion.
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Step 5: Do a trial run.
Detailed Guide
When you live on your own, you will have a lot of bills.
That is simply unavoidable.
Before you move, you'll want to research the cost of many things, including rent, utilities, food, and transportation.
Make a list of all of the things you use in your daily life (water, heat, internet) and then figure out how much those things cost per month in your city., You'll want to get a reasonable budget down on paper.
In addition to calculating how much you'll spend on essentials (rent, heat, etc.) make sure to put the non-essentials into your budget, too.
For example, figure out how much you spend on entertainment each month.
Love to go to the movies? Factor that in.Make sure you know how much money you actually make.
If your income varies from month to month, use a lower number when creating your budget.
You don't want to get caught short.You'll also want to factor in transportation costs to get around your new neighborhood.
Try to figure out how much you will spend on gas and public transportation.
Make sure to build in some "fun money" to your budget each month.
There should be a little flexible spending.
Everyone needs to splurge on pizza after a bad day at work once in a while.
Don't be afraid to adjust your budget as you go along.
Prices will fluctuate, and so will your income and priorities. , Your credit is an important part of your financial independence.
Before you live on your own, make sure that you not only have established credit, but that your credit score is good.
To establish credit, you might want to consider getting a credit card.
Research different types, and pick one that is best for you.
You'll want to make sure to pay your bill on time each and every month.
You can ask your parents to put your name on one of the household bills.
For example, if your name is on the cable account, that can help to establish your credit. , What will you do if your car breaks down? What will happen if your boss cuts your hours at work? Unfortunately, these things happen.
That is why it is important to have some emergency funds set aside.
When you are first setting out on your own, your goal should be to have at least $500-$800 set aside in case of emergency., Before you make your big move, take a month or two to practice your new found financial responsibilities.
Set up your budget and stick to it.
You can even go so far as to pay rent to your parents, in preparation for paying a landlord.
It's unlikely your parents will resist!
About the Author
Dennis Gordon
Writer and educator with a focus on practical lifestyle knowledge.
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