October 23rd, 2013 by admin
Janine, a young 20-something student at the University of Alberta is pursuing a career/major in Accounting. She is passionate about financial literacy and includes tips on her blog, My Pennies, My Thoughts, that chronicles her life through her early-to-mid-twenties. The blog documents how she plans to accomplish financial freedom as well as the musings of her own triumphs and of course all the little bumps along the way. Read more at : http://mypenniesmythoughts.com/
How To: Move Out of Your Parent’s House
This is dumb for two reasons. First, I’m not sure why people feel so entitled that their parents should basically fund their down payment. If you’re living at home rent free while working full time so that you can save up for a down payment, it’s not really you saving up for it. In reality it’s your parents money your using for your down payment because you would have paid them at least a portion had you been paying rent to them. How is that fair to your parents?
Our generation is entitled, and that’s how a lot of older generations view us. Moving out, building a budget and making a plan to save up for a down payment while paying for your own living expenses is the adult thing to do. I don’t understand why so many 20-somethings think they shouldn’t have living expenses.
The second reason this particular statement is a stupid reason for not moving out is the interest on a mortgage. If you don’t want to pay $700 a month for rent because you are “paying someone else’s mortgage” think about the $9,000 per year (or $750 a month) you are blowing on interest ($300,000 mortgage at 3%). This doesn’t even scratch the surface of the other cost owner’s incur (read condo fees, maintenance, home insurance).
So now that we have established moving out is a good idea, here’s how you can do it.
Step 1: Set a date
Whether you are moving out all by yourself or in with friends/significant others setting a date gives you a timeline to work with. Because I live in Canada I wasn’t thrilled with the idea of moving in the middle of winter and I didn’t want to do it part way through the semester so I chose the beginning of the school year!
Step 2: Build a budget
Know how much you are willing to pay for rent and figure out your utilities and grocery bills. Then add on an extra under dollars or so because it always costs more than you think it will. For tips on building a budget as a student click HERE.
Step 3: Live like you’ve already moved out
This was one of the best things I’ve ever done. I worked full-time for eight months before moving out and each month I would stash away “rent payments” for two reasons. The first was to get myself used to having bills to pay and the second was that so when I returned to school I’d have money to supplement my income.
Step 4: Acquire pieces slowly
Whether it’s before or after you’ve moved out I would advise buying things slowly. Obviously you need the basics: a bed, dishes, and table. But you don’t need to furnish your entire home in one go. We live in an era where everyone has to have everything right now and that just isn’t the case. Saving up for a nice couch or bookshelves instead of buying the first thing you lay eyes on will not only teach you patience but you’ll probably be able to do some research on the most budget-friendly option and you will be able to find the sectional of your dreams! Heck, the condo is still an on-going work-in-progress!
Step 5: Get help moving
Recruit family and friends to help out with moving. I had such a fantastic group of people help me move my things out of my parents, I didn’t have to rent a moving truck which I’m sure saved me a lot of money.
While moving out of your parents may seem incredibly intimidating know that everything will always work out. It always does, and if you’re focused you will always get by. The lessons I’ve learned this past year are invaluable and I wouldn’t trade them for the world.
Readers, what are your tips to students or new grads wanting to move out of their parents?