Though the security of not needing to pay rent and the comfort of always having food in the refrigerator are no doubt convenient, as you get older and start to develop your own lifestyle, you are probably starting to think about moving out of your parents’ house. This step is the most prominent one that represents your transition into independent adulthood.
When starting to prepare for this major change, there are important things you must consider. The most important thing to think about when making this move is your financials – how are you going to afford to move out? We’ve all been there, so we at Tucson Moving Service have come up with some helpful tips on how to make a financial plan for your big transition.
Calculate Your Expenses
As soon as you move out, your bills are going to start piling up. When you first start planning to move out of your parents’ house, you should make a list of all the things you use on a daily basis – like water, electricity, gas, food, transportation, internet, etc. – and then figure out how much these things cost in the city you plan on living in. It might be hard to determine exactly how much water or electricity you use on a daily basis, so try to research this information by calling the municipality, contacting a friend who lives in the area, or finding out if there’s a community Facebook page you can post your questions to.
Determine Your Budget
How much money do you actually make? It’s important to know what your monthly income is so you know how much money you have to spend and save. We suggest that you always lowball this number so that you’re never stuck coming up short. If your income fluctuates month-to-month, always calculate your budget using the worst case scenario, least amount of money you might make in a given month. This way, you will prevent not having enough money for your expenses, and everything else is a bonus.
Establish Credit
Having good credit is important as ever, especially if you are planning on living on your own. If you don’t already have a credit card, start researching the best one for you. If you’re a student, you might be able to get a student account – some of which will even provide you with great benefits as long as you get the grades! Also, try to find a credit card company with little or no annual fees. Once you have applied and been approved for a credit card, start building your credit by making regular purchases on your card and always paying your balance in full and on time.
Another thing that can help you build credit is asking your parents to put your name on one of the household bills, like the cable or gas. Before moving out, you want to make sure that not only have you established credit, but that you have a good credit score.
Set Up an Emergency Fund
If you’re planning on moving out and be financially independent, you must also account for potential risks. For example, what happens if your car breaks down, your dog gets sick, or your boss cuts your hours at work? Try to save at least $500 to set aside for emergencies. If you can afford to, you should also try to add at least $5 to this every month.
Determine Your “Fun” Budget
Living on your own shouldn’t just be about going to work and paying bills. While you should always make sure you have enough money for your essential expenses, like rent and food, before spending money on anything else, you should also set up a monthly budget or saving system for “fun money” too! If you like going out with your friends to the movies or ordering in pizza after a bad day at work, you should absolutely calculate these expenses into your budget as well. That’s not to say you should throw responsibility out the window, but calculating a little bit of fun into your budget is crucial.
Call Tucson Moving Service
After reviewing your expenses and finalizing a budget, you’re ready to take the next step into adulthood and independence. If you need someone to help you move into your new home, contact us for a free quote or call us at 520-468-8956. Whether you’re preparing for a local move just around the corner or preparing for a long distance move, Tucson Moving Service is here to help!
