Many of us have lived in our parents’ houses for at least 18 years, so the opportunity to venture into an independent living situation is a prospect that’s simultaneously terrifying and exciting. People tend to worry about numerous things before they move out on their own, but some of the top concerns are usually related to money.
They might wonder what they’ll do to make sure they don’t forget to pay bills on time, and get preoccupied about what might happen if they get into a situation involving an unexpected shortage of cash. Fortunately, dealing with those pressing matters is easier than you might think, especially when you get informed and plan ahead.
Be Realistic About What You Can Afford to Spend
Setting a budget is one of the easiest and most effective ways to stay on top of your finances. To avoid feeling overwhelmed, create your budget by going through one step at a time. That way, even if math isn’t your strong suit, you’ll be able to spot errors more quickly.
Begin by incorporating all the things into the budget that are necessities from month to month. Your rent, cell phone bill, and insurance fees are a few examples. Then, when dealing with costs that vary, like groceries, utilities, and fuel, try to err on the side of caution and devote more of the budget to those things than you’ll probably realistically spend. If possible, have some money left over to use for fun things, such as trips to the cinema, dinners out, and cool clothing you just can’t pass up.
After you’ve thought carefully and realistically about how much you make each month versus how much you earn, it should be easier to see how feasible it’ll be for you to be financially stable on a consistent basis. Encountering money troubles from time to time is almost inevitable, but when you’re aware of spending habits, it’s easier to avoid them and take control when they happen.
Understand Your Options
Although it’s impossible to know in advance what might happen that causes you to become strapped for cash, you should at least get informed about the courses of action you can take if you need money quickly. Don Gayhardt is a corporate leader who’s been instrumental in making it easier for people to get the money they need through short-term loans.
As the president and CEO of Speedy Group, he has helped the company become an established and respected name in the community financial services industry. Don Gayhardt has helped his company get to the point where it now operates over 400 branches in the United States, United Kingdom, and Canada. What does that all mean for you? It’s probably easier than you think to get cash in a hurry by depending on one of these short-term loan providers.
Alternatively, if you have a good relationship with your employer, you may be able to see if it’s possible to get your paycheck early. However, that option is usually only extended in rare circumstances and may be risky.
You might also want to consider running a campaign to raise money by turning to the people you know. This is a concept known as crowd funding. It’s most likely to be successful if you need money for something that would appeal to a person’s emotional side, such as a last-minute operation for your aged mother, or a new car, because yours was stolen from outside your apartment last week.
Set Up Automatic Billing When Possible
Check to see if your utility payments, insurance premiums and other things you have to pay for periodically can be automatically deducted from your bank account. That way, you don’t have to remember to pay them, which could help you steer clear of extra payments like late fees.
If you have your credit card bill set up on an automatic payment system, the prompt payments that result could improve your credit score, which should have a favorable effect on your long-term financial status. Credit scores are characteristically examined when people do things like buying houses and purchasing cars. Even if you don’t plan to do those things soon, it’s still smart to do what you can to build and maintain a good credit score.
Consider Sharing Expenses
If the thought of living on your own after moving from your parents’ house is too overwhelming, think about whether you’d be open to the idea of getting a roommate. Doing so could allow you to save a lot of money on rent and utilities. Alternatively, you might start participating in a carpool system where you share your vehicle with others and also rely on their cars for transport. These are just two of the many ways you can depend on other people to cut your costs, usually without making a lot of sacrifices.
Moving out on your own is a huge step, but not one that has to make you feel freaked out. By following the advice above, you could enjoy freedom from financial problems during your independent way of life.