ON MY OWN – What Every Young Adult Wants
Starting out on your own should not be a task for you. As you make your decision to take on adulthood keep in mind that the world’s realities are very different then your own. Everything has a cost, did I say everything? As a young adult, the way you take-off as an adult handling your own responsibilities should not be driven by the following.
1. I cannot wait to get out of my parents house.
Leaving your parents home sounds great. However, every pleasure, every household expense and since of security is now your responsibility.
2. I have friends who have their own place.
You will never really know the truth to what goes on behind the scene with your friends and they are really doing what they are doing. Never make a judgment for yourself based on what you think someone else is doing. Every household is different and carries different responsibilities.
3. I am grown now, so I need to be on my own.
This is possibly true. If you attended college and completed it, you really should rethink this. While in college you were semi on your own. Did you ever need you parents help? Imagine being on your own completely.
4. My boyfriend/girlfriend wants me to have my own place.
Most relationship as an adult on their own for the first time becomes life lesson. Often times, lessons that most wish they never had.
5. I just got my first job making money.
This really means that its time for you to plan. Create the process for you to establish a real foundation moving into adulthood. Understand more about the responsibilities that come alone with having your own. Do you rent or buy? Do you live paycheck to paycheck? Do you party like a rock star?
So, how should you moved towards adulthood and getting out on you own? I am glad you asked….
Hey, there are probably a lot of emotions going on with you right now. Either you just finished college and found a good paying job or you simply out of school with a job or you finished college and looking for work. It really does not matter which. What I am about to say to you is sound principles that if you adopt them with help you become financial sound with a solid foundation.
Let me hope that you are working and still living with your parents. This is in fact the very best position that you can be in. Why would I say that? Consider these things. You have in your mind already what you would like to do. You have a paycheck coming in, you want your freedom and if you are using your parent’s car, you want your own.
I know that feeling. However, let consider some facts, real facts that do not have anything to do with your parents. The examples that you saw earlier covers most of facts that I will not repeat. If you just finished college most likely you have student loans that will need to be repaid. You possibly already have a credit card or two, if not believe me it will not be long before you have some.
If you need a car of your own then you will need a large deposit and a co-signer. Any apartments, alone with most utilities require a deposit as well. Then there is the issue of furniture and appliances for your new place. The issue of your personal credit will be questioned and depended on as well. It’s not just that simple to move out. Many have done so and lived to tell the stories. Don’t become one of them.
Okay, real simple these are the best recommend steps that I know.
Be committed not to do a single thing for at least 12 months.
Live with parents and save at least 65% of what you make monthly. Because your expenses are very low living with your parent you will be able to enjoy some of your earning. (If you move out all money must pay your own expenses. Little pleasure money left over.) Example: $1000.00 net income. You save $650.00, which gives you $350.00 to spend freely.
Out of the 65% that you are saving you must do this. Give 40% of that amount to your parents to help around the house with an agreement that after you reached your designed goal that they will in turn co-sign for your new car if you need one. Example: $650.00 now you give your parents $260.00 for help around the house, you are left with $390.00 to really save.
Save this amount every month for at least 12 months. If you do so, you will save $4680.00. Now, at the end of 12 months with some planning along the way you can possibly have your down payments need for the house, car and utilities.
Open an account with a credit union to save the money because that is the best source to use to establish credit and when its time for the car loan you have the right banking partner.
By you using that 65% to save and give to parents, it helps you to get use to paying monthly obligation. It allows you to really feel the real life experience of taking on responsibilities. Look at it as your invest to yourself. Plan to keep all of your expense along with saving around that 65% mark.
This is hard and you possibly think that I am a little crazy here. My son and daughter still tells me how they are glad that they did not run out and do the wrong things right out of college. So, it’s decision time, remember that this is the start of your future. Do it big, but do it right. There is one start out of the gates of life make it count for you.