Living on your own for the first time is one of life’s greatest milestones. Finally free of your parent or guardians’ rules, you are paving your own way and can truly call yourself an adult.
While many young adults are opting to live at home with their parents, you’re moving out on your own and stepping into the real world. As you step into this next stage of life, it’s important that you learn how to be financially responsible so you can establish a foundation that will help you for years to come. Here at Peoples Bank, we’re providing valuable advice for living on your own—from budgeting and banking choices to choosing the right place to call home.
If you’re moving out of your parents’ house and getting ready to live on your own in an apartment, you’ll need to know how much it will truly cost you to live. A first step is to save up enough cash to afford all the things you’ll soon need for your new home and start building your emergency savings.
To determine your moving out budget, you’ll want to save up at least enough to cover your security deposit on a rental, which is typically first and last month’s rent. But you’ll also need to invest in basics like furniture, curtains, dishes, bathroom supplies and more. There’s a lot you’ll need to buy for your first apartment, so be sure to plan accordingly.
Next, create a budget for living on your own. A good place to start is to crunch your numbers with a cost-of-living calculator or create a budget sheet. Create a simple budget by listing all your expenses, like rent, car payments, insurance, groceries, gas, heat and hot water, etc., and then all your sources of income, like your job or freelance work. This will allow you to understand the real-world costs of living on your own.
The point isn’t to live a boring life without enjoyment. Your money gives you freedom of choice, and you should have a good time. But remember to take care of important bills first, such as rent, groceries, loan and insurance payments, before you start booking expensive vacations or buying extravagant home entertainment systems. Budgeting boils down to a simple premise: Spend less than you earn. That’s the way to get ahead.
Arguably the biggest decision you need to make is where you will live and whether you will buy or rent your home. It's no secret that owning a home or condo is another huge milestone and requires a significant financial commitment. You may want to start off by renting to avoid the long-term obligations of having a mortgage, insurance and property taxes, and affording a hefty down payment and closing costs.
Rent is more of a fixed budget item than home ownership, and occasional rent hikes probably won’t exceed the cost of replacing a roof. And, if both buying and renting seem too expensive, you may want to consider a roommate.
To get your financial house in order, you’ll first want to make sure you have the best checking account to fit your needs. Whether you still have a student checking account or need to open a new checking account, keep these banking tips in mind.
Living on your own for the first time is an exciting step. Learning to do so responsibly will allow you to spend more time having fun and less time dealing with financial concerns. Enjoy this exciting stage of your life, and don’t be afraid to ask Peoples Bank in North Carolina for financial guidance when moving out on your own. Call us or visit us at a North Carolina branch today.
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If you receive a call from someone claiming to be a Peoples Bank representative and you are suspicious, hang up and call the number listed on your account statement or our official website: 877-802-1212.