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Things to consider before moving out on your own

February 18th 2018 - by Amanda Huinink

Moving out of your parent’s house can provide young adults with a sense of responsibility, ownership and freedom.  But with that comes many new monthly costs that you may not have worried about in the past.  If you can plan ahead to move out on your own, that is your best bet.  It will allow you to gather your finances and plan for the new monthly costs coming your way such as TV/Internet bills, rent or mortgage payment, insurance, car payments, maintenance costs and much more.  No matter what the reason may be to leave home, a budget can help you make it through the tough financial times that could lie ahead.

  • Keep track of your monthly income
  • Track and manage all monthly fixed bills
  • Prioritize ongoing savings for your future (emergency fund, retirement, school costs, etc.)
  • Minimize your debt

It’s important to consider all the different things that may impact your monthly costs. Work through some of theses questions and see how they fit into your financial plan.

-         Where do you plan on living?  Research the different house rental or buying costs in different areas you find desirable.
-         What type of place are you looking for? A condo, basement apartment, townhouse or a detached home. 
-         Will you be living with anyone else that can help supplement the monthly costs? A roommate or partner?
-         Have you set aside money to furnish your new place? Will you be receiving any second-hand items, or do you plan on buying everything brand new?
-         What about transportation? Think about what you will need in order to get around.  Will you be taking public transit like a subway, go train or bus? Or will you need a car to get to and from school or work?  Depending on your answers to these questions, consider what costs are associated with those decisions.        

Take time to look at your finances and talk to your family, roommates or living partners as well as a financial planner to discuss what you can afford to spend each month and what makes the most financial sense to you and your lifestyle at the time.  Don’t forget to always keep money aside each month for a rainy day.