Moving Out For The First Time? Here’s How To Ensure You’re Financially Ready

Moving Out For The First Time? Here’s How To Ensure You’re Financially Ready

Moving out for the first time can be ridiculously scary, whether you’re doing it alone or with a friend/partner. If you’re going to move out (it’s around this time you’ll realize how good you had it and how difficult adulting is), you need to make sure you have all of your ducks in a row so that you can have peace of mind and ensure you’re financially ready. Let’s take a look at how you can ensure you’re ready for the move:

  1. Have A Steady Income

First of all, you’re going to need a steady income. Whether from a job, freelancing, or other sources, doesn’t matter. What matters is that you have money coming in regularly and you’re confident that it’s going to continue. If your job is on the rocks, you’re in temporary employment, or you’ve just gone self employed, it may not be the best idea to move out yet. You should be confident that you will continue getting money in the bank to pay for your expenses no matter what, and look to the future at things that could change so you’re prepared for every eventuality.

  1. Start Managing Your Money Better

You need to be able to manage your money well if you’re going to be financially ready enough to move out – unfortunately, that’s what adulting is all about. You’re going to need to know how much is coming in, how much is going out, and you’re going to need to resist the urge to splash the cash on every pretty item of clothing or accessory that comes your way. You need self control and the commitment to leave money in the bank for your bills. If you struggle with this, it could be a good idea to speak to a financial advisor.

  1. Know What You Can Afford

Figure out what you can afford when it comes to a place to live. You’ll need to consider the obvious, such as whether you are going to rent or buy. Then, you’ll need to work out what the maximum amount is you want to spend on bills. Make sure you don’t go to the maximum limit you can afford, as you’ll need to be able to cover unexpected costs and emergencies too. Plus, you might want to put some money in savings or investments, which you won’t be able to do if you have completely stretched your paycheck. Be realistic about what you’re willing to pay every month, whether that’s rent and bills or a mortgage and bills.

  1. Pay Off As Much Debt As You Can

Before you move out, it’s a good idea to get into a position where you are debt-free. Pay off as much debt as you can so you don’t have to worry about incurring huge interest fees, and being worse off than you would like for years to come. Being in debt can affect your credit score, your ability to get a mortgage, interest rates, and your enjoyment of life.

See if you can come up with an aggressive strategy to allow you to pay off your debts quickly. Some people like to pay off smaller debts first as it helps them to feel like they are making a real dent in their payments. Others prefer to pay off those with higher interest. Remember, if you’re struggling it’s always best to get in touch with the companies you have loaned from to explain your situation. They may be able to come to a better agreement with you.

  1. Money For Furniture, Insurance, Deposits, etc

Will you need money for furniture, or will the place already be furnished? What insurance will you need? There are different kinds depending on whether you decide to rent or buy. Then, you can’t forget things like deposits and extra fees, such as conveyancing. You can get Conveyancing Supermarket conveyancing quotes to get an idea for how much these extras will cost you. Always have more than you think you need squared away.

  1. Save Up An Emergency Fund

When your debts are all paid off, saving up an emergency fund will give you peace of mind. This fund should be around 3-6 months of living expenses. It should also be in an easy to access bank account, so that it’s there if you really, really need it. Do not use it for things that aren’t essential or emergency. You need to forget about it. It’s there for times when you might be in dire help, such as finding yourself without a job and with bills to pay.

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Written by themoneyshed

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