Leaving the Nest: Moving Out of Your Parents’ Home
Moving out on your own requires some planning. Whether you are a freshman going to college for the first time or you’re saving up to leave the nest, financial preparations need to be made. Before you start decorating your new digs, brush up on your financial literacy skills to ensure a successful transition.
When you move out of your parents’ house for the first time, you don’t want to move back in! Figuring out how much to save is the first step to take. A good rule of thumb to follow by is having three to six months of living expenses saved and set aside. Take advantage of free rent at your parents’ house until you have a secure, steady job!
Create a monthly budget by using old financial statements to estimate how much you spend each month on gas, weekend money, etc. Add these things in along with your rent, utilities and other monthly expenses.
|Monthly Expense||Dollar Amount|
|Utilities (Electricity, Water, Trash, Etc.)||$50|
|Weekend Spending Money||$100|
Adding a 10-15% buffer is always a good option. The most common mistake people make is underestimating how much they will spend on things like groceries and spending money each month. Something as simple as an Excel spreadsheet can help you budget each month and keep up with your expenses.
Once you fly the coop, don’t forget to keep in touch with good ole mom and dad! They love you and want to see you succeed. Make time in your busy schedule to give them a call or meet them for dinner one night. You’ll appreciate that time in the long run!
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