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:

Spend Wisely

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.

 

 

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30 replies on “How to Move Out Of Home on a Budget

  1. This was very helpful and a great topic for sure!
    I wanted to move this summer, but it all depends on the situation with my exams and having to find a place and while it is within the same state, it will be a city with no one I know around 🙂 so it will be new but fun hopefully , but all of these things are something I will have to keep in mind before moving!

    Shay-lon

    Liked by 2 people

  2. At 20 I moved out, but the main thing that helped me and still having it today, is a spreadsheet in Excel. Keeping close tabs on what comes in and what comes out. It is very tentative to use credit cards, but not the best idea. Teaching yourself you can’t spend what you don’t have, I think is the best way.
    Great article Kally! XxX

    Liked by 1 person

    1. Great sharing and tips on the Excel sheet, Patty! I always clear up my credit cards at payment day sometimes even earlier. I only use it to collect air miles. Haha. But yes, when you move out the first time, you probably go bonkers with buying a lot of stuff just to deco the new place. Like I did when I first moved to Shanghai, I wanted a homely home so I went crazy at IKEA! The bill was longer than my height! Ended up I didn’t move a single thing to Kuala Lumpur because it was too expensive to ship it back, I gave all away to my colleagues in exchange for free dinners for a month.

      Liked by 1 person

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