Financial Tips When Living on Your Own for the First Time

Finishing college can mark an important transitional point in anyone’s life. If you’ve got a great job lined up, now might be the time when you’re ready to branch out and start living own your own as an independent adult. With no roommates to worry about, and no family watching over your shoulder, you’re free to live exactly how you choose. However, with great freedom, comes a lot of challenges, particularly when it comes to managing your finances. With only one income to rely on, you’re going to need to be extra cautious about how you manage your spending. Here are some quick tips to follow to ensure you don’t fall onto hard times when you start living on your own for the first time. 

Create a Budget Immediately

Budgeting isn’t an option when you’re living on your own – it’s a must. Even if you were saving money in college, you’ll only have a limited amount of cash to work with, so you’ll need to account for every penny and where it’s going to go. In fact, it’s usually a good idea to do some budgeting before you move into your own place, so you can ensure you can reasonably afford to go solo. Make sure you have enough cash to pay not just for all of your bills, but also to place some extra money into your emergency savings just in case something goes wrong. You’ll need to have a cushion to fall back on just in case you end up with a broken washing machine that needs fixing, or some other unexpected event. Remember to update your budget regularly as your living situation changes.

Cut Down on Monthly Costs

This might sound like an obvious suggestion, but you’ll need to keep your monthly expenses as low as possible when you’re living on your own. This doesn’t just mean you have to be cautious about how many luxuries you invest in either. You’ll also need to look closely at regular expenses like utility bills and insurance to see where you can cut costs by switching to new suppliers. One excellent way to ensure you’re keeping your monthly expenses low, is to keep a close eye on your loans. If you have an existing student loan that’s eating away at your income, consider using Earnest student loan refinancing to move your debt into a more affordable account. This can give you more money to use on the things that matter. 

Invest in Maintenance

Finally, living on your own is a great opportunity to put your independence to the test, but it also means you’re not going to have as many people to turn to if something does go wrong. Investing in your maintenance skills and learning how to perform simple repairs on your own will save you a lot of money and effort in the long-term. Commit to actually fixing the things around your home that might break, and you’ll find that you spend a lot less money replacing the things other people simply throw away. You might find it’s helpful to make purchasing choices with a focus on durability too, so you know you’re buying items that are going to last.