Everyone reaches that age where they want to move out and be more independent. Maybe you have no where else to go and you have to move out. Or, maybe you got your dream job and have to move for it to a whole new city.
Here are a few different things you should think about before you move out on your own:
Do you know how much money you really make?
If you are new to the full-time world, then you may not know how much money you actually make. Too many people spend their first paycheck before they actually make it.
You should actually receive your first paycheck before you start spending it. After taxes, any fees for health insurance or anything else that your company may be taking out of your paycheck will usually significantly lower your paycheck.
Do you have a budget?
After you figure out how much money you actually make after taxes, you should create a realistic budget. You need to figure out how much you can spend each month, and still account for savings and retirement as well. I know you are probably young, but you should still be saving for retirement!
Can you afford where you are living?
If you are moving to a new place, then you should think about the total cost of where you are living. Here is an example of different expenses that you may have to pay for:
- Mortgage or rent.
- Home or renters insurance.
- Gas and/or electricity.
- Home phone.
- Cell phone.
- Car maintenance and/or repair.
- and more.
Have an emergency fund.
If you are going to live on your own, please have an emergency fund. You should figure out an amount that is comfortable for you to have. Some people like to have $1,000, whereas others like to have 6 months or a full year of expenses. For me, I like to have at least 6 months of expenses because you never know what may happen. I’d rather be comfortable and feel safe than have to worry if something bad were to happen.
Here are different things that an emergency fund may help you with:
- Job loss.
- Slow income months.
- Car problems.
- Home repairs.
- And more…
Please read Does Everyone Need an Emergency Fund?
What money tips do you have for someone who is new to living on their own?
Image via Flickr by alancleaver