Moving Out of Home - Tips For Young People Moving Out of Home - Tips For Young People | Page 3

02 How Much Debt Do You Have?
It is also important to consider how much debt you have. For example, if you find a job
that's near your parents' house and you get along with your parents, you may consider
living with them temporarily so you can pay down your debt more quickly.
For this to be a good option, you need to have a definite debt payment plan and make
sacrifices so that the majority of your money is directed toward your debt. You should also
have a set date for completing your debt obligation and a target date for moving out. It's
also a good idea to discuss this plan with your parents before you commit.
03 Have You Set Up an Emergency Fund?
Before you move out, you should have an emergency fund saved up for extra expenses. You
should have between $1,000 and $2,000 set aside to cover financial emergencies such as
car repairs, medical deductibles, and clothing.
If you have a good job and are sticking to a monthly budget, you should be able to tuck
away a good sized emergency fund fairly quickly.
04 Do You Have Money for Rental Fees and Deposits?
When you move out, you will need to have money to pay for your first and last month’s
rent, as well as any deposit and rental application fees. Additionally, you should have extra
money for deposits or hook up fees for utilities such as electricity, water, and cable.
To ensure a smooth transition to your next home, you will need to make sure you have
enough money on hand to cover these bills. Another important thing to keep in mind? Be
sure you have enough money set aside for moving costs.
05 Will You Purchase Renter's Insurance?
Renter's insurance will protect your property if you are robbed or there is a fire. It is not
that uncommon to be robbed, and the insurance can give you peace of mind and help you
replace your possessions.
Although this may seem like an unnecessary expense, it is usually very affordable and can
save you a lot of money. Worth noting: rates are based on where you live and how much
you choose to insure.
06 Will You Have a Roommate?
Roommates are a great way to save on rent. However, you need to choose your roommate
situation carefully, as friendships can deteriorate quickly in difficult living situations.