How to afford Moving Out
HOW TO BUDGET TO MOVE OUT ON YOUR OWN
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what's up friends it's Ted this is
Wonder weld Lee and as part of the
financial blow up series I'm gonna be
answering a question that I got from one
of you actually Meghan asked high-test
for the series could you do a video on
how to create a budget for moving out on
your own for the first time I am trying
to move to a big city Toronto and I'm
struggling to adjust my budget from
renting from my parents to a
significantly higher market rent
renter's insurance and other expenses
any advice you would have would be
awesome thanks all right Megan this is
such a common question that I get among
lots of people who are making that
transition from college to career which
is exactly what the financial blow up
series is for so thank you so much for
asking and here are my four best tips to
help you build your budget and start
budgeting for this big time move by the
way if you're new here make sure you hit
that subscribe button a little bow
because you don't want to miss more of
the financial glue-up series plus other
fun videos that I have coming down the
pipeline alright for tip number one that
is to cherish this time that you are
able to have a more affordable rent with
your parents and even if you personally
are living with your parents
rent-free that is awesome use this
opportunity to start saving money into a
separate savings account to build up an
emergency savings fund so many people
especially college graduates fail to see
this as an opportunity when they are
stuck living with their parents they're
not super excited about it except now
they have some extra beer money well
instead of having extra beer money look
at that as extra emergency savings fund
money and put this money towards that
fund so that when you do finally move
into your new apartment out on your own
away from your parents and you have
higher rent you at least have that
cushion that buffer in your account so
that when emergencies strike you can dip
into it and use that instead of having
to go into credit card debt or god
forbid miss a rent payment my second tip
is to start budgeting now as if you
are already moved out and I know this
sounds a little bit confusing but start
doing your research on what average
rental prices are going to look like and
figure out what your budgeted rental
price is this can also help you while
you're looking for a new place to move
into what is realistically going to fit
into your own personal budget but start
budgeting that way now a couple weeks or
even a couple months before you move out
of mom and dad's you can get used to
that and make sure that you're not gonna
completely blow your budget when you do
make that move now what do you do with
all this extra money that you're not
technically spending but you've budgeted
as if you're going to spend it well you
use that money and put it into that
savings account for that emergency
savings fund to start building that up
so I just told you how to do number one
with number two my third tip is just to
consider all of those expenses that you
probably aren't considering right now
there are a lot of things that you will
have to pay for when you move out of mom
and dad's that you probably don't even
realize if you are paying rent that
they're using that money to pay for
things like utilities cable and internet
bills if they're cutting you off of the
cellphone plan then you're gonna be
paying for your own cell phone bill
depending on where you're gonna be
moving into you might have to pay for
parking then there are things like
cleaning supplies which are hard to
predict but you can ask your parents
kind of how much they generally budget
for cleaning supplies or you can use the
anti budget and just know that your
daily number should cover cleaning
supplies as well as all the other random
variable things that you will be paying
for - if you want to learn more about
the anti budget you can go to the link
I'll put on the screen as well as in the
description box to get in on the free
training other things you might not
currently be paying for would be
something like groceries and then of
course renter's insurance which honestly
is not that expensive but very important
to have because if your camera or your
computer or something else that is
really expensive that you love goes
missing hopefully you'll be covered the
other item I do want to make sure I
mention in this you know costs you
probably having considered is if you
just recently graduated but you had
student loans in school then you may not
hang on those yet but that's another
thing you're gonna have to budget for
come six months down the line assuming
you're in your grace period right now so
don't forget about that and then of
course there's going to be upfront costs
if you are moving out on your own things
like the deposit that you have to pay
and the first month's rent make sure you
have enough saved on top of your
emergency savings fund you obviously
need to have some of that money to help
you when you are making that move
there's also going to be costs for
moving if you can't have someone help
you out with the moving and there's also
the fact that you might need to furnish
the apartment now there's a lot of ways
that you can save money here first of
all get roommates if you can get
roommates it can drastically cut down on
your cost of living day to day as well
as the deposit that you would put down
and even the furnishing because maybe
they'll bring some furniture and you'll
bring some furniture also consider
asking older siblings older cousins or
even ons and uncles or your parents if
they have some old furniture even
kitchen supplies and all of that other
stuff that they're not going to be using
or that they just want to get rid of and
be happy to accept that right now if
you're currently in a situation where
you're trying to figure out how you're
gonna make it all work then trying to
figure out how you're going to furnish
your apartment by it going to Target or
West Elm is not an option for you right
now is the time to live off of borrowed
goods and that is a-okay all in all
there are going to be additional
expenses you need to consider and just
start practicing by putting them in your
budget now to make sure that it won't be
a huge shock when you do finally move
out all right my friends the fourth tip
that I have for you when it comes to
budgeting so you can be prepared to move
out on your own it's actually set up
automatic payments for all of these
bills and any other bills or debt
payments that you need to make it could
be scary to set up automatic transfers
from your bank account to these bills
that you have but it is so important to
make sure that you are paying your bills
on time and in full every month so you
don't really ruin your credit score
which is something you'll you know want
to make sure you have up to snuff
potentially in the future you also just
don't want to have to pay a lot of late
fees or additional fees for not make
your payments but so many people fail to
realize that these bills come due every
month moving out on your own and you
know making a lot of phone calls and
setting a lot of things up a lot of
things are all happening at once and
sometimes we just forget about things so
while you're going through this process
make sure you set up automatic bill pay
so that you can ensure that your bills
are being paid and you don't have to
worry about it and as long as this is
included in the budget that you set up
for yourself and you made sure that you
could afford that then you should be
good to go but it's always wise to do a
budget review especially in the first
couple months that you're on your own do
it every single month if not every
single week and then eventually as you
are living on your own into the future
you can do it every couple months or
even every quarter so Megan and everyone
else out there ready to make that leap
from living with MND to doing it on your
own I hope that these tips help you
build a budget that is realistic
sustainable and allows you to make that
move as soon as possible but make sure
that you do do your due diligence make
sure that you have your savings up to
snuff and you're ready for this move
it's a big one but it's a fun one good
luck and until next time I hope you won
or wealthy bye
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