Turning 18 and can’t wait to move out of your parent’s house? Well, you are not the only one because independence can be quite amazing. However, with independence comes a lot of responsibility.
Mistakes to Avoid When Moving Out
Since this will be your first time living alone, a lot of things can go wrong. In order to avoid any mishaps, the first thing that you should do is make a budget. It is very simple to do this because all you need to do is know how much you will be earning each month and how much you will be spending.
Once you have that figured out, simply set a certain amount on the side as savings. Always remember that saving will take you a long way. You don’t have to save a big amount every month. Setting a few dollars aside, or 10% of your paycheck is a great start and you will be thanking yourself at the end of the year.
Another common mistake that youngsters make is that they pay their bills extremely late. Being independent means being more responsible, so it is your duty to set up reminders on your smartphone so you don’t miss the deadlines.
Be Prepared to Have a Lot of Expenses
If you want to spend your money efficiently, it is important that you have a record of everything that you spend your money on. You will have a lot of expenses in the first month like buying things for the kitchen as well as the rest of the house. Whatever your expenses are, just remember to add everything to the budget.
Tips to Help You Out
Here are some helpful tips that you should know about:
Do not go overboard when buying things for the house. Make a list of things that you need and stick to it. Need new things? Get bedroom furniture to rent because chances are that you won’t be living in your first house for too long.
Have an Emergency Cushion
Once you move out of your parents’ house, you will realize that saving money is difficult. If you have a surplus income, it is recommended that you put it in a high yield savings account, so that your money grows at a faster rate. Even if you put 10% of your paycheck towards the account, you will have a good sum to rely on in case of a financial burden or medical emergency.
Get Rid of the Debt
Debt affects your financial growth, so it is important you get rid of it as soon as possible. Your strategy should include getting rid of high interest debt like credit cards first and then moving on to low interest debts like student loans. Check out some great tips at http://clark.com/personal-finance-credit/how-get-out-debt-quickly-5-simple-steps/
Have a Credit History
It is a good idea to have a credit history before you move out. You can apply for a credit card, make a charge, and then pay it off immediately.
While many of us in South East Asia don’t move out of your parent’s home after we turned 18, it is still good to keep in mind that a move out of the nest, is a huge milestone towards adulthood.
At what age did you move out of your home? Share with us in the comments below.