Every kid leaves the nest sooner or later, and today, your time might be here to move out of your parents’ house and start an independent life. This is a big change that requires plenty of planning, research, budgeting and adjusting. So what do you need to know before you actually move out?
Talk to your parents
No matter if your parents want you to stay at home forever or if they are happy to see you start an independent life, it’s necessary to talk to your parents about your decision to move out. Even if you know they will be excited for you, they can still be sad at the beginning. Keep this in mind as you communicate your decision to them and be sensitive to their emotions.
Create a plan
Before moving out, consult with your parents and friends to make a moving plan. To make everything official, set a goal date, a date that will be your provisionary moving out day. Of course, you don’t have to respect your plant to the T, but it’s a good point to start from. Your moving plan should also include an approximate location, type of property and whether you want to live alone or with a roommate.
Fix your credit score
If you’re not exactly proud of your credit score yet, this is the best time to start working on it. No matter if you want to rent or purchase a property, a bad credit score will have many negative consequences. You might not be able to get a loan from a mortgage lender or a landlord might choose someone with a better credit score over you. Landlords can run credit checks on applicants to get a good idea of whether they will be able to play everything on time.
If you don’t have a credit score, you can ask your parents or relatives with good credit to be your co-signer. However, the time you still have at your parents’ home is the best time to start building a good credit score. One of the easiest ways to improve your credit is to sign up for a credit card and use it intensely for all your purchases. If you pay all your bills on time, your credit score will continue to rise.
Start looking for your new home
Today’s market is quite tricky to navigate, so you might want to start looking for a property very early on. In some markets like New York or California, the competition is very heavy and the prices are sky-high, which is something to keep in mind. However, some up-and-coming markets in Texas are perfect for new renters. If you take a look at Abilene apartments for rent, you’ll see amazing properties with a ton of indoor and outdoor amenities for a reasonable price. So don’t hesitate to bookmark all the best property websites and regularly go through them.
Budget for the win
To save money for your down payment, you need to create a good budget and good spending and saving habits. And once you manage to save up, it’s time for another budgeting program—how to cover all the expenses of renting/owning a home and living alone. You can use many of the same points you used for your previous budgeting plans, but with some small changes. For instance, if your new location is further away from work, you will need to adjust your gas budget. Also, you will have new expenses like paying rent, paying bills and buying groceries. Your largest expense will definitely be your rent or mortgage, but you should also include things like property taxes and HOA fees.
Find a steady job
You need to have a source of a steady income in order to cover all the bills, otherwise, living alone will be very stressful. Not having a steady job usually leads to long-term financial issues like debt, late payments and horrible credit score. If you can’t ensure your finances will remain unscathed, it might be best to stay at home for a little while longer. To ensure your financial stability, you might want to consider taking an entry-level position job, even if it’s not right up your alley. This way, you’ll get some valuable work experience and money while you wait for a perfect job opportunity.
No matter if you’re moving across town or to another continent, starting a life on your own is not easy. However, if you prepare yourself mentally, create a good plan, come up with a steady budget and get a good place to live, the transition can be much easier for everyone.