Posted on Tuesday 04 September 2018
As the cost of living becomes increasingly expensive, many young adults are opting to live at home with their parents or other relatives. But for the most part, people reach a time when they wish to live on their own. This is understandable. However, leaving home and venturing into the real world requires serious, calculated preparation. This is not something that can be done on a whim.
If you are thinking about leaving your parents' for your own place, these tips will help you know where to start.
Generally, the cost of living greatly varies according to location. With this in mind, a young person who wishes to leave home must investigate the costs of living alone, explains Money Crashers.
This means you need to do extensive research. You should look into not only the costs of rent, but also utilities, groceries, transportation, and other things you typically shop for. Many young people may be shocked to learn that independently supporting themselves is more costly than they think. Sometimes, some end up having to opt for fast loans to pay the bills.
Even in the best situations, unexpected events have a way of popping up. This is why The Balance advises young people to have extra funds put aside in case of emergencies. Car accidents, damage to valuables, and other unforeseen occurrences happen. Having a few thousand dollars put aside will help to mitigate these situations. A good way to multiply your funds is by investing. However, you need to carefully weigh whether organically saving or investing is the right choice for you.
One of the biggest financial mistakes people make is overusing credit cards, or borrowing too many online payday loans. They continuously swipe their cards and are then unable to pay the bill when due. This leads to subsequent interest charges which quickly pile up on top of the original debt. In time, interest outweighs income and people sink deeper into financial hardship. However, if you direly need to, you can take advantage of cash advances.
Young people have to minimize their use of credit and reserve credit cards for only emergencies. Of course, doing this requires a degree of discipline and a stable, regular income.
In many regards, moving out of your parents' home and becoming financially independent is a rite of passage. The society also views this as the true mark of adulthood. But this isn't something to rush into, you need to have a stable source of income first. However, there are times you simply do not have a choice. If this happens, you can take payday loans for the unemployed.
A good knowledge of your living costs, saving, and cutting back on credits will give you the financial standing you need to live on your own.
Authored by Gabrielle Renee Seunagal