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Mistakes People Make When Living Alone

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If you can’t wait to move out of your parents’ home and start living on your own, you’re not alone. Independence is amazing, but enjoying that newfound freedom can be more expensive than you might think. Fortunately, there are tons of helpful websites and mobile apps that can make managing your finances fun. And by incorporating these tools in your everyday life, you can develop a realistic budget and start saving money for the things you enjoy.

 

Common Mistakes When Moving Out for the First Time

Perhaps the biggest mistake young adults make when moving into their first apartment is not making a budget. The principle is simple: First, find out how much income you’re earning each month, and determine how much you’re spending and on what. Then, based on those numbers, set aside a certain amount of each paycheck for rent and utilities, and actively track your spending so you don’t run out of cash.

 

Online platforms like fundall help you manage your finances properly. You can also use a notebook or spreadsheet to track your spending if you prefer to kick it old-school. The point is, creating and sticking to a monthly budget is the single best thing you can do to prevent a financial catastrophe. It might even be among the most valuable life skills you’ll ever develop.

 

Another big mistake young adults make when first moving out of Mom and Dad’s is not saving any money. You might wonder what the point of saving is if you only have a handful of dimes left over from each paycheck.

Paying bills late is also common among the newly independent. Avoid this nasty habit by setting up reminders on your smartphone or using an online calendar to alert you a few days before bills are due. Or, better yet, start paying your bills as soon as they arrive. 

 

Preparing for Expenses You Hadn’t Considered

In order for a budget to work, it has to account for everything you spend money on. This includes little things like parking lot fees, late-night drive-thru meals and random convenience-store purchases. 

Those living away from home for the first time are bound to face a flurry of unexpected expenses during their initial months of independence. In the kitchen alone, you’ll likely need to invest in dishes, cookware, and a dozen ingredients to stock your pantry. And when it comes to keeping your home looking good, it’s easy to underestimate the cost of cleaning supplies. Netflix and Spotify subscriptions are also often overlooked.