Leaving the Nest: A Millennial Guide
The percentage of millennials living with their parents is higher than ever. Dropping unemployment rates and rise in median salaries among younger individuals should lead to an increase of those wanting to leave home for the first time. However, leaving the house for the first time can be a scary endeavor for most. Below are some tips for the average millennial looking to leave the nest and start on their own:
Begin to develop your payment habits and responsibilities. Start with researching costs of living on your own. Consider areas outside of rent as well, including water, heat, cable, electric etc. Begin training yourself to put the money that would usually go toward those bills away. This is a great way to both save and teach yourself how to budget.
Save enough to have an emergency cushion. For those unexpected expenses such as an off work week, car break downs, or unexpected medical expenses.
Landlords will often look at your credit history for a clue as to how you handle your finances. It may be hard to receive an apartment approval with little to no credit. Begin building your credit by taking out a low limit credit card or small loan. Pay the credit off immediately and begin building your credit score.
As you begin signing up for various aspects of your own place, make sure to read the fine print. Read your lease in full to look for any hidden fees or rules that could be costly if broken. Apply the same idea when signing up for cable, electric, and other apartment amenities.
You are ready to move out, but is your career ready for this change? If a change in jobs is necessary to accomplish leaving home, it is never too early to start. It will give you plenty of time to find the right fit, and give you practice in interviewing.
Begin to think of yourself as a saver and bill payer. You will no longer be in a position for frivolous spending.
Set a Deadline
Give yourself a goal for when you would like to be ready to leave. Include family, friends, and other necessary parties in on your plans, and begin saving for the expensive first time expenses such as security deposits, and first month’s rent.
Photography by [baranq] © shutterstock.com
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