So you’re moving out of your house for the first time! Your finally going to smell the crisp smell of freedom. Think about it…you can do whatever you want at anytime. However is it really all what it seems to be?
Moving out of your parent’s house for the first time can be intimidating. The most ironic part about moving out, is we naturally have the tendency to chase freedom as humans. However, little do we know that there is also a dark stench that wreaks throughout our “freedom journey” called Responsibility. There is no avoiding this stench, and for some, it ends up seeping into their nose glands to trap them forever. The reason I am writing this, is to simply show you how to break free and enjoy our youth, while spraying that Febreze on that stench we call “Bills”.
Whether you’re going away to college, or planning to live with friends, what I’m about to tell you is critical if you value your future. Before I get into this though, I want to share with you who I am and why you should trust me. My name is Austin Harley and I have been in Real Estate (the correct way) for the past 2 years. I moved out of my parents house at the age of 17 and have been through the demeaning grapple of where to live, and how to pay for rent through college. Through my rough experience I have become licensed, published my own book, “How To Sell Your House Without A Realtor”, and discovered hidden life hacks that I wish I could have taken advantage of. I take everyday as a learning lesson and pride myself in being able to help others. That’s why I have developed 3 Simple Life Hacks on Where and How to Live When Moving Out of Parents House.
1. Find Your Monthly Budget!
This is critical when deciding where to live. And so many times I see students become trapped in financial binds because they do not know how to budget. Well, we can’t blame you. It was never taught in school!
I have attached the most essential tool you will use throughout your life, so if you get good at it now, Imagine when your graduate college.
With this tool, you can budget all of your expenses including bills, groceries, gas, rent and more. With this, it allows you to enter your rent, and other necessities first. Obviously the remainder will go to savings or spending. Finding your comfortable median for how much you can live off of every paycheck is essential to living on your own. Keep your monthly expenses low! Do not finance that car for 4 years, extend it out to 7! Yes you will pay more interest, but you will also lower your monthly payment in case of sudden emergency. (Besides you can always pay ahead.)
“Jay Z said in an interview that you can’t afford something unless you can buy it twice. Words to live by.” It’s simple if you’re planning on buying that laptop or fresh pair of Nike’s for school. Wait until you have double the money budgeted. It’s amazing how better you will feel when purchasing that item as well as the reserve still being set aside in case of a disaster. Live by this rule and it will not steer you wrong. This also will apply for down payment on larger ticket purchases. Car or House down payments were not designed for you to deplete your savings. Depending on your familial status, you may want to keep that reserve $5,000 aside after the down payment on the house. It’s happened countless times where first time homeowners buy their first home and, BOOM, 6 months later, laid off their job. Remember if your mortgage or rent payment is one week’s work, then you are considered financial sound!
3. Live BELOW Your Means
Every time you want to make a purchase, ask yourself, “Do I really need this?” We all have the tendency to splurge. Some before they even make the money. Heck, I am the guiltiest of this. DO NOT spend your money before it hits your account! Isn’t it a surprise that Bill Gate and other Billionaire’s drive Toyota Camry’s? It’s because they’re focused on what actually matters. Your wealth will expand with time, so do not worry, but for the time sake of building your self, don’t be the big spender. Don’t live by the phrase, “Your only young once”, because you will still be young when you graduate college or develop your own trade. However, it’s up to you to decide when. All the cards are in your hand now.
Also, on a side note: Dream big dreams, but don’t talk big talk. In other words, don’t be the guy walking around telling everyone how they’re going to be a millionaire without a plan. There is nothing wrong with being excited for your dreams, but have a plan and work there in small steps.