Moving out on your own for the first time is a big deal. It’s a time that is both exciting and scary. Even if you spent time living in a college dorm, getting a home of your own or moving into an apartment will be the first time you have a place that’s all your own.
For many young adults this is the first time they’ve been responsible for themselves, and, because of this, there can be quite a few surprises. So let’s take a look at a few things to keep in mind before loading all your stuff into boxes and venturing out into the world.
Keep reading to learn how to get ready for moving out on your own.
Give Yourself a Budget
Many young people hate the word “budget.” But in reality, a budget can be a liberating tool. Developing the habit of living within your means is one of the most significant gifts to give yourself because it makes the decision-making process so much easier.
Once you know what your monthly income is, sit down and develop a budget that allocates your paycheck among your various responsibilities, making sure to create a discretionary budget for fun stuff like eating out.
Put at Least One Bill in Your Name
If you decide to move in with a roommate, we suggest having your name on at least one bill. This is an excellent way to start building credit. It also shows potential creditors that you are a responsible client.
Perhaps place your phone bill or car insurance in your own name. This way, even if you are splitting the electric or water bills with someone else, you will have something under your own name to pay in full each month.
Work on Your Credit History
Your credit history has a major impact on your purchasing power. This will impact everything from buying a car, applying for a credit card or an apartment, and even applying for a job.
The best strategy for handling your credit history is to have bills and lines of credit in your name, then pay them off on time each month.
Pay Attention to Your Credit Score
A low credit score will make it challenging to secure loans or credit in the future. Keep your credit score in good shape by paying on time and paying credit cards off as quickly as possible. Simply put, your credit score is the way the financial world judges you.
Out on Your Own
Relocating out on your own for the first time is one of the best times in life. Following these tips will make the transition a little smoother and help you avoid some common missteps many people make along the way.
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