If you’re living with your parents and would like to make a move towards living independently, writer Catherine Alford offers some valuable budgeting advice, as highlighted in this article from U.S. News.
The U.S. Census Bureau recently reported that more than 30% of people aged 18 to 34 still live with their parents. This number works out to be a whopping 42.2 million people, most of whom are college-educated. What’s shocking about that number is that there are more people who are living with their parents now than there were during the recession. While many people choose to live with their parents, many others want to be on their own but don’t have the financial means necessary to do so. However, with one budgeting trick, those who want to be independent can be well on their way sooner than they think.
It might seem too good to be true, but one exceptional way to become accustomed to living on your own is to budget in rent, even if you’re living at your parents’ home for free. This trick not only gets you accustomed to paying for rent or a mortgage regularly, but it will also help you build a substantial enough savings account to allow you to feel comfortable moving out of your parents’ home.
Many parents do not charge their adult children rent, believing that they are being helpful and allowing their children to become more financially aware. However, because children are not responsible for paying to live somewhere, they can easily get lulled into a false security that they have more money than they really do.
Because many people’s parents don’t actually charge them rent, you can place that money aside. The benefits are that you get used to not spending that amount of money each month, and you build a substantial savings account that will help you when it is time to move.
While factoring in rent (or a mortgage payment) into your budget is the best way to prepare for moving out of your parents’ house, there are some other financial factors that you should consider in addition to this in order to prepare for your big move.