Preparing to move out of home for the first time
One of the biggest steps in any life is preparing to move out of home. Moving from home means you are ready to venture out into the world and begin a new life of independence. Of course, that independence comes with a price. No longer do you enjoy the rent-free, bill-free existence of living at home. Now, you must face the cold hard reality that you are going to have to start paying bills as your parents did throughout your childhood. So, how can you prepare yourself for this sudden realisation? How Much Can You Pay For Rent?
How Much Can You Pay For Rent?
The first thing you have to do is to determine how much rent you are going to be able to pay each month and how much money you have left over for bills and food. The best way to do this is through a budget. By creating a budget, you can look at your current income to determine how much you have to spend on rent and bills. However, there is more to this than just finding how much you can afford. For example, if you can afford $400 a month, then you may have to either room with someone, or you are going to have to find a place that is cheaper and that can come with its own problems. You need to then determine where you want to live and if you want to live with anyone because that will make a difference on how much you decide to pay. Other New Apartment/Home Costs
Other New Apartment/Home Costs
Your rent is not the only thing you have to look at for costs. There are several other costs related to beginning to rent your own apartment or home. These costs include:
The best course of action with bills is to ask people who already have bills how much they pay on average. Then, you can use that information to determine how much you need to pay each month. If you find that your bills are going to cost you about $200 per month, then you should have $600 saved up so you have three months grace to pay your bills. The problem with bills is that if you miss one, then you owe more on the next one, and you have to find a way to pay that off, and if you don’t, it keeps increasing. It is a vicious cycle to be in. Don’t forget about possible deposits you will have to pay as well. Talk to the utility companies to find out what kind of deposits will be required so there are no surprises when you sign up.
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Wilson Luna is an author, wealth adviser and founder of Your Family Your Money. Your Family Your Money’s goal is to simplify traditionally complex financial strategies, demystify financial jargon and debunk common financial myths, becoming every family’s first stop for financial advice, information and inspiration.
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