Tag Archives: moving

How to Financially Prepare to Leave Your Parents’ Home

As the cost of living becomes more and more expensive, many young adults are living at home with their parents or other relatives. However, many people reach a point and time where they wish to live on their own. This is quite understandable and to be expected; however, leaving home and venturing out into the real world requires serious, calculated preparation. This is not something which should be done carelessly or on a whim.

Anyone who is thinking about leaving their parents’ homes will benefit from the following pieces of advice. Not only do they provide insight regarding this particular situation, but the forthcoming tools can also be applied to¬†achieving general, economic success.

Know the Cost of Living

In general, the cost of living greatly varies according to one’s geographical location. Bearing that in mind, young people who wish to leave their parents’ homes should first know how much it will cost them to live on their own, explains Money Crashers.

This means doing research and looking into not only the costs of rent, but also utilities, groceries, transportation, and miscellaneous fees. Many young people may be shocked to learn that independently supporting themselves is more costly than they thought.

Have A Decent Amount of Funds in Savings

Even in the best of situations, unexpected events have a way of popping up. This is why The Balance advises young people to have extra funds put aside in case of emergencies. Car accidents, damage to valuables, and other unforeseen occurrences happen each day and preparation is paramount. Having a few thousand dollars put aside in cases of emergencies is a good idea and will likely pay off sooner or later.

Try to Minimize Use of Credit

One of the biggest financial mistakes people make is overusing credit cards. They continuously swipe their cards and are then unable to pay the bill when it comes due. This leads to subsequent interest charges which quickly pile up on top of the original debt. Before you know it, interest outweighs income and people sink further and further into financial hardship. For this reason, Mint urges young people to minimize their use of credit and reserve credit cards for only emergencies.

Of course, doing this requires a degree of discipline and stable, regular income, but reducing one’s use of credit is much better than the alternative.

A Final Word

In many regards, moving out of your parents’ home and becoming financially independent is a rite of passage. The majority of society also views this milestone as the true beginning of adulthood. By knowing one’s living costs, saving money, and using credit as infrequently as possible, young people will more than likely do well for themselves as they venture into the world of adulthood and independent living.

 

Authored by Gabrielle Renee Seunagal

How to Financially Plan for a Move

At some point and time in most people’s lives, they will be ready to pack up and move. This can happen for a variety of reasons. Sometimes, they may have received¬†a job promotion or relocation. In other cases, a family may be ready for a new beginning or simply want to be closer to relatives. Nevertheless, there are countless motivators which can cause people to move across the state, country, or even across the world. However, financial planning for a move is so important and can save an unbelievable amount of troubles and headaches down the line. After all, preventative maintenance is always better than damage control.

Be Aware of All Associated Expenses

Relocating is, by no means, inexpensive. Therefore, Quicken affirms the importance of having an awareness of how much it will cost to move furniture and other items. Sometimes, movers opt out of relocating their furniture and simply chose to sell it and purchase new furniture once they’ve arrived at their new home. In many cases, moving furniture and other large items is more expensive than simply replacing it. There are many other costs associated with moving, such as new rent, utilities, transportation, and the overall expenses of living. Anyone who is even thinking of relocating should be aware of all costs before proceeding any further.

Save Money

Similarly to be aware of moving expenses, saving money is one of the most critical steps of financially planning for a move. Many people put aside funds months, if not years, ahead of time to ensure full preparation for their relocation. Doing this can save many problems and moreover create a sense of security. The reality is that the costs of moving add up extremely quickly. When saving, people should always have extra money in addition to what will cover their moving expenses. This particularly comes in handy in the event of any unforeseen emergencies or other occurrences. Anything can happen at any time and there are few things worse than having a move be delayed due to a lack of funds.

Update Critical Information

With all of the financial costs associated with moving, there are a few more matters which must be tended to before completely settling in. These matters involve updating critical and personal information such as ongoing bills, bank accounts, and credit card accounts, according to Smart About Money. Also, upon moving, each person will need to re-register their car and receive a new drivers license. Both of these things can be done at the local DMV, although there are usually minimal fees associated with the aforementioned updates.

A Final Word

Moving is a very exciting time in anyone’s life. There are many benefits and opportunities which can come from relocating to a new place. However, by being aware of associated expenses, saving money, and updating critical information, each person will be on the right track to a smooth and stress-free move. Like all things in life, moving across the state, country, or world certainly requires careful degrees of thought and preparation.

Authored by Gabrielle Renee Seunagal