Moving out on your own for the first time can be an exciting time, but it’s also imperative to be prepared. If you’re about to move on your own for the first time, it’s important to:
If you’ve never been off on your own before, you may not realize the importance of having an emergency fund. Whether your parents are helping you out, you’re receiving financial aid for college and housing expenses, or you’ve got a job, it’s still crucial to put money in a savings account. It’s important to be prepared for the worst, and you’ll want to make sure you have enough cash to pay your bills, rent, and other expenses.
Make a budget
On top of having money saved up, you’ll also want to create a sensible budget and commit to it. In your budget, you’ll want to include your expenses for food, housing, college, and any other bills and living expenses you’ll be paying. Many young adults moving out for the first time don’t realize just how much they’ll spend on certain things, so when creating your first budget, you’ll want to play it safe by overestimating the variable expenses.
If you haven’t established credit yet, you might want to start building up your credit score before you go off on your own. Otherwise, it can be difficult to get approved for an apartment, unless you will have a parent or family member with good credit cosigning on the lease. If you’re on your own, one way to begin establishing your credit is to open up a secured credit card or try to get a low-limit credit card. Not only can this help you build your credit, but it can also get you into the habit of paying monthly bills, if it’s something you haven’t been used to before.
Compare different housing options
As someone moving out for the very first time, there’s a good chance you’ll be renting a place, rather than buying a home. If you are renting, keep in mind that you have various options, so you’ll want to explore everything that’s available in your area while also considering the advantages and disadvantages of each. If you’re moving out because you’re starting college, you might want to live in an on-campus dorm or off-campus apartment. There’s also the option of living alone, or living with roommates, which can help you cut down on expenses. If you do lease an off-campus home, you also have the option of living in a managed apartment community or renting a privately owned home. There are a lot of choices, so it’s never too soon to begin looking.
Do you need extra money to take care of bills and expenses? If you’re receiving long-term structured settlement or annuity payments, you can receive your money sooner by selling some or all of your future payments to Peachtree Financial Solutions. Contact Peachtree Financial Solutions today to learn more about selling future payments for a lump sum of cash.
Nothing above is meant to provide financial, tax, or legal advice. You should meet with appropriate professionals for such services.