While living with your parents may be comfortable, you might eventually wonder what it’s like to move out on your own. You might enjoy thinking about the places you would live, the people you would hang out with, or the things you would do if you had the independence of living on your own. Still, while living on your own can be fun, there are lots of financial implications to consider.
Create a Realistic Budget
Your expectations should be in alignment with the reality of your income, budget, and ability to plan for unexpected expenses. It’s common for people to move back in after trying it on their own for a few months, but this can be avoided with realistic planning. It’s expensive to move back in again, and if you have already signed a lease, breaking it can come with negative consequences. Breaking a lease may result in legal action or a strike against your credit score.
It’s important to have something to fall back on before moving out. Open a savings account dedicated to this and start setting funds aside. Work monthly savings into your budget and look for other ways of lowering monthly expenses as well. If you have student loan debt, look into a refinance. By refinancing student loans, it can give you more favorable terms, with more time to pay back the balance. It can also change the interest rate you end up paying.
Understand the Long-Term Implications
Sometimes, the excitement of moving out can cloud your thinking and prevent you from thinking about determining if you are ready to move out and the long-term implications of doing so. You might not think about the details, like utility bills. If you don’t plan for each bill, you may find it hard to pay your bills on time each month. If you are living paycheck to paycheck, you will feel stress over your finances.
While it’s a good idea to calculate how much it will cost you to move out, you also need to think about how much you will need to stay in your new home, even once the excitement has worn off. If the numbers aren’t adding up, you might need to recalculate your budget or look for ways of increasing your monthly income. Working side hustles or picking up extra hours at your job can help make up the difference, but make sure you are being realistic. Can you sustain working 60 hours every week, or will you eventually burn out?
Know the Importance of Your Credit Score
Landlords evaluate credit history when considering potential tenants. Your credit history shows whether or not you are likely to pay rent on time. If you don’t have a good credit score, it can be hard to make large purchases or get a new space to live in. It is not hard to check your credit score, and you can always work with credit repair services to accelerate the process. So take the time to do that now and make any necessary changes.
Fund Your Household
You might not have many household items or pieces of furniture for your new apartment, so take some time to think about how you will fill the space. While you don’t need a lot, you will need a bed and enough kitchen items that you aren’t eating off of paper plates every night. Don’t fall into the temptation of purchasing everything new, however. If friends or family members are upgrading items, ask if you can have or buy the old ones off of them.
There are also social media groups where people in the area may post items they are getting rid of. Ask your friends to be on the lookout for you as well. You can check out thrift stores or consignment shops in the area to find deals. This prevents you from having to dip into your savings, which you will need to make living on your own sustainable.
Check Out the Neighborhood
Many times, leases go for a year, so understanding the area allows you to commit to it before signing the paperwork. Make sure you will be comfortable in the area that year. If you need to commute, see if there is public transportation nearby. If it’s a mile away, think about whether you would be comfortable going there in the heat of the summer, on a snowy day, or in the dark.
Research shopping as well. You might get a great deal on an apartment but find the nearest grocery store is a 30-minute drive away, so it might not be as good a deal as it seems at first. Make sure you have at least a few stores to pick from. The environment itself plays a role in your overall happiness as well. While there might be open space nearby, you may prefer a space that has something to do at night. On the other hand, some people might feel crowded in an area that is too built up.