How to Live on Your Own – Tips For Making a Perfect Budget

Before saying goodbye to your whole family, you have to acknowledge that moving out for the first time requires planning. It is of utmost importance to prepare yourself for becoming responsible, especially if you are moving abroad alone. You will have to think about your savings account, paying rent on time, and creating a monthly budget. Thinking about all of the responsibilities you will have may create moving stress. You don’t have to worry too much because our advice will give you a head start.

Get Information About Living Expenses

You will be asking yourself – how much money do I need to live on my own? You want to think ahead and research what living costs await you in the city you are moving to. Living on your own expenses will be challenging at first, so decide early on if you’re going to rent an apartment or get a mortgage on a house. Also, try to research the area you are interested in. Of course, you have to factor in the average rental fees, transportation fees, food costs, healthcare costs, waste removal services, and utilities such as water, gas, electricity, and cell phone bills.

Suppose you haven’t made a final decision about where you want to move. You should start by researching where you will have the cheapest living expenses. If you are relocating for the first time, evaluate your reasons for moving away and try to find a place you can afford. You can begin by informing yourself on the best places to move abroad or finding the best cities to live in Europe. Your housing costs will vary depending on the country or city you are in and the type of accommodation you choose.

Open a Savings Account

If you have a general understanding of what kind of expenses await you, you should open a savings account before you leave. You can freely opt for international moving by sea if you always have money on the side you can spend. Your savings account can be an emergency fund you can rely on. You can choose a traditional or an online bank where you can safely deposit your money and follow your account balance on your phone. Some documents you require for opening a savings account are your ID, address information, driver’s license, and social security number. With your savings account, you’ll be better prepared for any extra fees if you want to live overseas.

Don’t Splurge on Anything Before Your Move

If you plan on moving internationally, you have to be aware of your spending. A savings account will help you keep track but knowing you cannot spend any cash on expensive things is also essential. If you plan to move efficiently, it would be best if you cut your spending. Don’t go to expensive restaurants or plan exotic trips ahead of your move.

Make sure you avoid spending on the latest mobile phones or luxury clothes. You can opt to eat at home, use public transportation, and coupons in supermarkets. You have to manage your money intelligently because you cannot predict what you will need money for. You might need to pay the movers for storage services or even overseas vehicle shipping.

Create and Plan Your Budget

After you have decided where you want to move, you can sit down and plan your budget. You might want to know – what is the cheapest way to live by yourself? That is why you have to write down all of the costs on a piece of paper or create a personal spreadsheet on your computer. First, you have to note how much money you will be earning each month.

Then you can organize your spending and manage your finances. 

Decide early on what you need to spend money on, such as rent, bills, and student loans. Also, try to calculate how much you can spend on things such as entertainment, transportation, and travel. You can also implement a 50/20/30 rule – which means 50% of your income should go to your needs, 30% goes to your wants, and 20% goes to savings. When you move to another country, set a reasonable budget, and stick to it.

Here is a video on how to make a budget that works for you.

Review Your Budget Every Week

You will be struggling to manage your finances in the beginning, so don’t forget to review your budget and make changes where necessary. You might have difficulty finding a job, or you might have some additional fees you haven’t planned for. Your expenses and income will probably be unpredictable in the first months after you start living abroad. It would be wise for you to decide on a day, every week, when you will be evaluating your spending plan. This will give you an opportunity to tweak your finances and cut spending where it is needed. After you get accustomed to living by yourself, you can assess your finances every few months.

Build a Credit History

Start building a credit history before moving out of your parents’ home. A credit history shows how well you’ve managed your finances in the past and if you keep track of your payments. One useful tip is to set up automatic payments for your bills. Along with ruining your credit card score, you’ll end up paying additional fees, if you forget about your bills. If you succeed at building a good credit history, you will get a better chance at getting lenders to grant you loans for a car or an apartment. You have to start early because a credit card score can be evaluated after three to six months.

You Won’t Figure Out How to Live on Your Own Without a Job

Without average earnings, you’ll be soon asking your parents for approval to move back in with them. Whether you’re relocating to Canada or trying to move to Russia, you should check websites where you can search for open positions worldwide. Create a resume and send it to employers. You can also visit Numbeo to search for jobs available to candidates from other countries or cities.

You don’t have to be a perfect candidate for a job you are interested in. Try to find something you would love doing and that you are good at. Keep an eye on jobs that offer excellent salaries and benefits. Before moving, make sure to make a list of all the relocation questions for your employer. You can also opt for remote jobs if you fail to find open positions that best suit you in your new town.

Ask your Parents for Financial Support Before You Leave

Moving overseas will be stressful if you can’t secure a good income. If you don’t get a job before your move, you can always rely on your parent’s support. An overwhelming number of parents, almost 60%, provide financial backing to their adult children. If you have exhausted all other options, such as getting a loan or borrowing from your friends, you should consider asking your parents before relocating across the world. You can assure them you will pay them back as soon as you get a decent job.

One drawback of this tip is that your parents might ask you for some control over your financial life. But you should set clear boundaries and emphasize that their support is only temporary.

Ask Your Parents to Lend You Old Furniture

Along with getting financial support from your family, you can also borrow used goods and old furniture from your siblings or parents. If you don’t have enough money to buy furniture or you don’t fancy the idea of buying second-hand furniture, you can opt for borrowing. In that case, you will likely require packing services from an international moving company if you decide to relocate furnishings from your parents’ house. They will know how to pack your fragile items and they can prevent things from breaking. With reliable international movers, you don’t have to worry that you’ll end up with no furnishings.

Meet the Locals

You might be struggling to get accustomed to your new environment. You don’t have a clue where to send your job application or where to shop for affordable goods. People from your city might be able to help you. If you relocate to one of the friendliest countries in the world you won’t have problems meeting the locals. They can share with you where the inexpensive restaurants are, how you can use public transportation, and which stores have active discounts. You can still keep in touch with your friends, but it is of utmost importance to also make friends abroad.

Meeting the locals will create an opportunity for language learning. You can break the language barrier by talking to the natives, and they would be able to share with you their tips on how to learn a new language. You will gain more knowledge about how to get by on your own from the locals if you can speak their language. Don’t miss out on this opportunity.

Find a Roommate to Live With

You might ask – is it cheaper to live by yourself? Sometimes that is not the case. That is why meeting people will help you find someone who would be willing to share an apartment with you. Finding a roommate is a great way to save money if you are venturing out on your own for the very first time. You won’t have to stress over rent and bills if you have someone with whom you can split the cost.

If you find an apartment that you can afford, you won’t need anyone else. Still, it is better to prepare yourself for the possibility of having someone else living with you if you can’t spend beyond your means. A wise thing to do would be to ask your friends and family if they can refer you to someone trying to find a roommate, or you can search online.

You Are Ready for The Challenge of Making it on Your Own

Now you can answer the question – how much does it cost to live on your own? We have shared with you some of the best tips on how to manage your finances when you move out of your parents’ house. At first, you will have to get accustomed to doing everything by yourself, but if you implement some of the tips we have given you, you won’t end up in debt. Plan and organize your spending, start thinking about moving in with a roommate, and also don’t forget that your parents can give you the initial push. If you are serious about making it on your own, you will definitely succeed.