With high rents and tuition keeping the pressure on, moving out of your parents house is an economic and educational problem, not a cultural one.
But hey – we all had a hand in the student loan crisis.
Whether you’ve graduated high school/college or not, living with your parents doesn’t mean you don’t know how to live without them.
Lots of students are in financial trouble based on unforeseen circumstances, and the steady increase in the cost of living without adequate wage growth hasn’t helped.
No matter the circumstances, if you plan on moving out of your parents house, pay attention to these key steps.
If you won’t do the work, you won’t stand a chance.
Assess your life – all of it.
Understand that going out on your own will make everything more difficult. Loans will be harder to come by without a cosigner, you’ll need to acquire and understand health and auto insurance, and keeping track of your bills and finances will be crucial.
Can you stay organized enough to succeed on your own?
Master Your Budget
Money come, money go. Wait – where did my money go?
No matter your financial situation, you need to track your expenses on a monthly basis.
Take a good look at where your money is going and determine what’s absolutely necessary. You can use a program like Mint.com or use my FREE Budgeting Tool.
You can kiss that allowance from your parents goodbye, so be sure to build a solid budget to make sure you’re making more money than you’re spending. A good rule of thumb is to pay yourself first by saving 15-20% of your income each pay period before making any expenses.
If you can’t pay your bills, you it’s time to cut down, my friend.
Learn the Art of Money
“To get rich, you have to be making money while you’re asleep” – David Bailey
There’s a great divide between what the upper class understands and what everybody else understands about money.
You must know how to use compound interest to your advantage, how to calculate your net worth, and learn different ways to make your money work for you. Money is your friend – learn all there is to know about it.
Open Your Own Checking/Savings Account
For an independent life, you need independent finances.
This one goes without saying – moving out of your parents house will require having a checking and savings account to yourself.
Hopefully your parents didn’t scare you into thinking you should hide your money under your mattress. Personally, I justify getting 0.1% interest on my money by getting cool debit cards with nice pictures on them.
On a serious note – be sure to ask about monthly fees when you’re setting up your account.
Build Your Brand and MAXIMIZE YOUR INCOME!
Your personal brand is the key to your career.
Brands carry value. There’s a reason most people prefer Nike basketball shoes over knockoffs – they trust the company, it’s reliable, and they know it’ll perform.
You want to build your personal brand in a similar fashion so that companies can’t help but hire you.
Since you’ll be out on your own, you’ll have plenty of free time to get involved in things. If you can’t get a job, get an internship. If you can’t get an internship, volunteer.
Whatever you do, make sure to take on additional responsibility, exceed expectations, and be friendly at all times. Most importantly, stay open-minded about new opportunities.
If you do those things, the money will follow.
Build Your Credit Wisely
Only spend what you can pay off each month.
Credit cards are great because they give you flexibility and can help you build credit. The bad thing about credit cards is that it’s easy to get carried away with them.
After moving out of your parents house, it’s important that you stay disciplined with your spending habits. The credit card expenses need to be built into the budget.
Choose a card that will give you points back for all your purchases. I have the Citi Double Cash Card which gives me 1% back on every purchase and every time I make a payment on my balance. Every bit counts, especially if you have that allowance hangover. Just kidding – but seriously.
Set Goals and Pursue Them Ruthlessly
To get where you want to go, you must take control of your destiny.
You didn’t move out just so you could play video games whenever you wanted to, right?
Before going out on your own, have a concrete goal in mind that you can strive for every day. It’s easy to get lost when you’re left to your own devices, but if you have the mindset that every day is an opportunity, you’ll succeed in time. If it helps, write your goals down and bring your story to life.
Moving out of your parents house typically comes along with some positives and negatives. What’s your plan of attack? Did I leave anything out? Let’s talk about it in the comments below.
Be sure to subscribe to the email list for updates on your favorite topics!
All opinions expressed on this blog are solely those of Home at 30 and are in no way affiliated with any other organization or institution. The purpose of this blog is to provide general education and information about investing, wealth, careers, and college; It is not intended to be professional advice.
After earning an undergraduate degree in Economics and a Master of Arts in Management at Wake Forest University, Josh has paid off over $90k in student loan debt in 3.5 years. By founding Home at 30, Josh wants to help you make the most of college, build a successful career, and achieve financial independence.