It can be an exciting time to finally move out on your own as a young adult. However, it’s also important to prepare yourself. If you’re getting ready to move out on your own for the first time, remember to:
If you haven’t begun establishing credit yet, it could be a good time to start before you move out. Unless you have someone who will be cosigning for you, it can be difficult to get approved for rental housing if you don’t have any credit. If you have a family member who has great credit, find out if you can be added as an authorized user to one of their credit cards, which can help to build up your credit score. And if you don’t have one already, consider applying for a low-limit credit card or opening up a secured credit card, which can also help you build up your credit. Not only can this help you establish credit, but if you aren’t used to paying bills yet, this can allow you to slowly get used to it. Once you move out, you’ll have various bills and expenses to worry about that you may never have been faced with before, so it can be a bit of a shock.
Have enough money saved up
As someone who hasn’t lived on their own before, it can be easy to overlook the importance of having an emergency fund. Whether you already have a job, you’re getting help from your parents, or you’re receiving financial aid for housing costs and college, it’s still important to have enough money saved up. You want to have enough to prepare for the unexpected, so that you can ensure you can still take care of your rent, bills, and other living expenses.
Create a budget
In addition to having some money saved for a rainy day, it’s important to create a realistic budget and stick to it. This includes your housing costs, food, any college expenses you may be paying, and so on. Many young adults underestimate just how much money they’ll be spending each month, so it’s important to overestimate when it comes to variable expenses. Make sure that you’ll be able to comfortably afford living on your own, or make changes to your lifestyle and budget so that you aren’t in over your head.
Explore your housing options
You have several different options when it comes to rental housing, so explore all those options and determine the pros and cons of each. You can lease an apartment on your own, move in with a friend, or rent a bigger space and try to find a roommate. Living with others can make it easier to afford to live in an area or place that would otherwise be out of your budget. On the other hand, maybe you want to truly be on your own for the first time. If you’re moving out because you’ll be attending college, you’ll also have some additional options to consider. You may want to live in an on-campus dorm room, or you may want to explore other nearby college housing options, if traditional apartment living is what you prefer.
Are you receiving periodic payments from an annuity or structured settlement, but could use some extra cash? Peachtree Financial Solutions can help. Instead of waiting for your payments to arrive, you may be able to receive your money sooner in one lump sum. By selling some or all of your future payments to Peachtree Financial Solutions, we can send you a lump sum of cash. Contact Peachtree Financial Solutions today to learn more about selling future payments and to receive your free quote.
Nothing above is meant to provide financial, legal, or tax advice. You should meet with appropriate professionals for such services.