Moving out of your parents’ house and financially supporting yourself is frequently a bit of a shock to those who don’t plan and prepare adequately. Even if you’ve known mostly dependence in your few decades on the Earth, it is entirely possible to be financially independent of your parents. This guide will show you some great tips for making sure you are on the path.
Picture Your Independence
This may sound a little odd, but visualize yourself with financial independence. The power of positive thinking can help keep you focused, and can give you some realistic expectations about how you’re going to reach that independence.
First, make a list of all of your spending, then make a list of everything your parents currently pay for and figure out how much additional income you would need to cover those items.
If you need to free up some cash, use a debt paydown calculator to help you pay off some stale debt and give your budget a little more wiggle room. Consider using a tool like Mint, which can help you automate your budget quickly and track your spending.
The most difficult part of creating a budget and spending plan though is sticking to it. It may be challenging at first, declining outings with friends in favor of a cheaper night in or downgrading a streaming plan or two, but stick with it and it will get easier as you see more progress.
Set SMART Goals
Make sure you are setting SMART goals for yourself. This means your goals should be Specific, Measurable, Achievable, Realistic, and Timely. Using this framework for your financial goals will ensure that you maximize your chances of meeting them.
Double Your Hustle
This won’t always be an option and even when it is, it may not be the best option, but if you have the time and the spoons, get a second job. Not only could this cover any additional expenses caused by transitioning to independence, but it can also provide a robust ability to save or invest additional funds.
Learn From Your Parents
Some people grow up with parents that are great models for fiscal responsibility, and some grow up watching their parents struggle either periodically or constantly. No matter what your parents’ financial situation was like, use it to your advantage. Either mimic their effective choices or learn how to avoid the pitfalls that caused them so much stress.
You may also get a substantial amount of handy information just by having a chat with them. While you can certainly learn how to balance a checkbook or set up a bill payment plan on the internet, your parents have probably been there and done that already, making them a prime resource.
Planning For Financial Independence From Your Parents
Moving out or becoming financially independent from your parents can seem incredibly daunting at first, particularly if you don’t make much money. However, with a little planning and some significant willpower, you should be able to create an effective plan for financial independence.