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3 Financial Preparations to Help You Move Out of Your Parent’s House

3 Financial Preparations to Help You Move Out of Your Parent’s HouseMoving out of your parent’s house is an exciting time. For the first time in your life, you’ll be responsible for everything that you need to do on a day-to-day basis. Sure, it can be a lot of work, but most people love the feeling of freedom that comes with it.

In addition to regular chores like laundry and dishes, you’ll now be on your own when it comes to finances. Most likely, this is going to be a bit overwhelming – and the toughest part of the move. Fortunately, by preparing yourself well in advance, you can make this transition as smooth as possible.

The three steps below should go a long way toward helping make this move a successful one.

Start Saving Now!

One of the best things you can do is build up some savings that can be used for various moving expenses. If you have a job – and you should, of course, if you are thinking of moving out – try to save as much of your paycheck as possible.

While you are still living at home, it is likely that your expenses are pretty low, even if you chip in to help your parents with some things. Take advantage of your current living situation by saving as much as you can. Without a doubt, those savings are going to come in handy later.

Make a Budget in Advance

You should have a budget for your independent life when you move out, but there is no reason you have to wait until you move out to design that budget.

First, consider what your living situation is going to be, and determine how much of your income is going to go toward rent (assuming you will be renting rather than buying). Also, budget for things like a car payment and insurance, food costs, etc.

Pretty quickly, you’ll get an idea of how expensive living on your own can be. It is smart to do this budget in advance to avoid moving out only to find that you don’t have enough money to make ends meet.

Build New Habits

Again, this is another step that will be easier if you do it in advance. While living at home, you may have many habits that are typical of young people – such as eating a lot of your meals out with friends, and spending excess money on things like entertainment and clothes.

We aren’t saying that you won’t be able to spend any money on those things moving forward, but your budget is going to take a hit. So, before you even move out, get used to your new lifestyle.

Cut back on unnecessary spending, make more of your own food, etc. By establishing a new set of habits before you leave your parents’ house, you will be in a for a softer landing in the ‘real world’.

Avoid getting into financial trouble when you move out on your own by starting your financial preparations well in advance of your move. This way you can start out on the right financial foot when living on your own.

 

When did you move out on your own? Were you financially prepared?

 

Photo courtesy of: ArtisticOperations

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John Schmoll is a Dad, husband and veteran of the financial services industry. He's passionate about helping people learn from his mistakes so that they can live lives free from the shackles of debt and empowered to make their money work for them. You can check out his other sites: Frugal Rules, for ways to improve your financial literacy; and Sprout Wealth for tips on different ways to make more money. John has been featured on Forbes, Lifehacker, Yahoo Finance and US News & World Report and more. If you're wanting to grow your blog, check out my blog coaching services to see how I can help you take your site to the next level.

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