Moving in alone is a big step to take and shouldn't be taken lightly. As many young people end up returning to their parents' homes or are left broke, it is essential to carefully plan the financial aspects of a move.
Steps
Step 1. Assess your maturity:
are you ready to move and live alone? Be honest with yourself: why do you want to move? If you can't stand the curfew anymore or hate helping with housework, you're probably not ready. Living alone is a big responsibility, not just an economic one. You will have to do the laundry, clean the house and pay the bills. If you are a student, going out every night is out of the question.
Step 2. Consider your drinking habits
- What are your essential outings? Can you reduce them? There is always a cheaper phone plan. If you live in an urban area, public transport will cost less than the car. Consider the pros and cons of each expense and figure out where you can save.
- What are the other expenses you have? If you are obsessed with shopping and spend 500 euros a month on clothes, don't fool yourself into thinking you can stop and reduce the amount to 50 euros after 30 days. Reducing it by € 100 a month could make a big difference. You have to take it one step at a time.
Step 3. Evaluate your income
- Jobs? Part-time or full-time? Is it possible for you to start working for the canonical 8 hours or work overtime?
- Will your parents give you any money? You've got a scholarship? Add up all your monthly and annual income.
Step 4. If you are spending more than you earn right now, the first thing to do is reduce all your expenses or increase your income
This will allow you to make up for the monthly deficit you currently have, which eventually turns into debt. For example, if you earn $ 1,500 a month but then spend $ 1,700, that extra $ 200 has to disappear, and fast. If you decrease your shopping by 100 euros a month and do a few extras at work to earn 100 euros more, you will get rid of the deficit immediately.
Step 5. Once you are free of debt, continue to implement these habits for at least a few weeks
Try to do this for about three months. The point is to learn how to spend less and earn more.
Step 6. This is the right time to start planning
The preliminary assessment you made before getting rid of debt now needs to be updated to observe the changes made to your lifestyle. Keep track of every single expense, down to the last penny. Forgetting something is not a problem, but try to be precise: the total monthly amount you spend to drink coffee at the bar could be close to 200 euros without even realizing it. Take a look at the expenses you can reduce (read the “Tips” section to find out more). Once you have limited your expenditure even more (or increased your income), you should end up with a surplus. This sum of money can be saved immediately in a savings account.
Step 7. Try to get an idea of how much money you would need to live alone
Search for rental listings in your area. If you want to move elsewhere, see if you have the opportunity to visit the neighborhood that attracts you both day and night. Do you feel safe? It's noisy? Are you close to a public transport stop or, if you have a car, is there a place to park?
Step 8. Visit the apartments to get an idea of what you can afford with the amount of money you have
For example, if you are looking for a studio apartment, take a look at the rents and consider which one is the lowest. Observe the condition of the house and where it is located. Ask if heating and water are included in the price, if there is a communal laundry available or if you will find an automatic one nearby, where the nearest supermarket, doctor, hospital, etc. are located. Try to make a list of questions to ask the owner before visiting the apartment so you don't forget anything.
Step 9. If you want, share the apartment with one or more roommates
You have to consider this solution to pay a lower rent, but remember that it will be more difficult to live with (or maybe not, it depends on your character).
Step 10. Moving is expensive
You will need a lot of money before taking such a step. The amount of money to invest is up to you, but it is essential to have everything you need close at hand.
- Emergency funds. If you fall ill and need special and expensive treatments, these savings will serve you in this regard. Calculate the amount to set aside based on your past health problems and whether your parents would help you if you need it.
- Costs to settle in the apartment. When you move to a new house, you need the furniture, money for the deposit to be paid to the owner and to pay the installation costs of services such as internet or electricity, money to shop at the supermarket (the first time the wallet is particularly affected) and for the various needs you will have in the apartment. Do not underestimate the amount you will need and, if in doubt, save more. During the first month of living alone, you can easily spend thousands of dollars, so you should plan everything: buying new or used furniture, shopping costs at the supermarket (try to round them up) and services (do a search online to find the cheapest internet provider). Once you have a general estimate, round it up. Better to have more money than you need than to find yourself without a sofa for three months because you can't afford it.
- Loss of revenue. If you run out of work, you will need savings so that you can pay rent and bills for several months, otherwise you will be evicted. Plus, you won't have to worry about where to find the money you need. To start, try to have a sum that allows you to live unemployed for three months.
Step 11. If you have set a date for the transfer, try to save the necessary amount in advance
If the money you set aside each month exceeds 50% of your income, you may want to reconsider when to move or the amount of money you are willing to spend on rent and other expenses. When you live alone, you should save around 20% of your income, but when you stay at your parents' house, you can afford more savings. However, you shouldn't take advantage of this excuse to postpone the moment you become independent. By managing to further reduce the expenses to set aside some extra money for the transfer, the better. In any case, don't give up on everything because you are stressing yourself too much to save: this experience should not drive you crazy, but it should help you make rational calculations. That way, you won't go into debt after you move.
Advice
- Learn to cook. Buy cookbooks, search for recipes online, ask your parents for help, the important thing is not to neglect this factor. Since lunch or dinner out is expensive, you will have to prepare the dishes you will eat during your lunch break and at home.
- If possible, try to get your friends to help you move. In return, offer pizza and beer. For items you need around the house, shop at thrift stores and online, especially to buy expensive pieces like furniture. Ask your family if they can give you items that have been set aside. If your parents give you the opportunity to do so, try bringing the furniture you have in your room with you. The prices of the beds are quite high, so it would be ideal, but ask first.
- If your salary is very low, try to find a job that allows you to earn more and get tips. It can make some difference in your financial situation.
- Don't hesitate to cut your insurance, bank or mobile phone costs by calling customer service. Express yourself calmly and politely. Explain that you think you are paying too much and that other companies offer similar services for a lower price.
- Drinking coffee at the bar, eating out, buying cigarettes and using the vending machines often are all habits that will make you spend too much. The cappuccino you buy at the bar for 2 euros, the Snickers bar (1.40 euros), the pack of cigarettes (4 euros) and the portion of pizza (2 euros) add up, and day after day you will only waste money. If you are a heavy smoker, can't give up coffee and are irresistibly drawn to the vending machine that is outside your class, all of this can drain your wallet and create a real black hole in your budget.
- Read carefully before signing. Never forget it. Ask for clarification and don't agree if you don't agree, unless the homeowner is willing to negotiate and change the terms of the rent.
- If you can, avoid using your credit card to pay bills. Do you use it often? Do everything you can not to get into debt.
- Before moving, learn how to take care of a home. Start by helping your parents with laundry, cleaning, and so on. Ask them for advice. You will avoid ending up with cramped or unlikely colored clothes. Plus, you'll know what to do if the apartment gets overrun by ants.
- The most important thing to do is get rid of debt. If you have a credit card, you may want to avoid using it or giving it to one of your parents to keep it safe, so you can only use it for the necessary bill payments (although you can try the bank's services offered online to pay through the current account: it would be much better).
- Try shopping online for better deals. Give yourself 24 hours to think about what you really want to buy and make the transaction, but only if the product is on sale and you can return it.
- If you can, take out rental insurance. It doesn't cost that much, and it could save you if they get stolen.
- Quit smoking and try to drink little.
- When visiting an apartment, try to have an experienced adult accompany you. He has probably already had negative experiences in the past, will know what to avoid and will realize if the owner is unscrupulous.
- If you can't give up on coffee and drink a lot of it, you should invest in a coffee maker. The cost will be significantly lower than what you would pay at the bar.
Warnings
- Health comes first. If you can't afford medical bills, ask your parents or friends for help, otherwise opt for a loan, but don't give it up just because you don't want to get into debt.
- If you can no longer manage your debts, ask for help immediately.
