Financial tips to become independent faster

According to a study by Rama Toms, young people have the necessary means to become independent, that is, to leave their parents’ house, only at age 28, and still allocate a large amount of their income to pay the rent. Is it possible to achieve it in less time?

The reason why this happens is that the salaries earned by recent graduates of the university are not as competitive as they should be and do not allow them to pay their expenses the way they would like. However, another reason is that this “independence” is not planned in advance and financial aspects that are valuable when starting to live alone are not taken into account.

The truth is that even if you do not have so much money, it is possible to leave your parents’ house and become more independent, but you have to be willing to make some changes:

 

Get used to running on a budget

Get used to running on a budget

Living day by day and without budgeting is one of the reasons why money does not reach you. Even if it sounds heavy, write down each expense so you can see how your pesos are going and make a budget that allows you to check how much you need to live.

 

Save, ALWAYS save

Save, ALWAYS save

If you have the move in scheduled for October, start saving from January or March, so you can have enough for an emergency fund that allows you to cover some expenses in case something goes wrong when you move. Once you live alone, no matter how much the expenses are, don’t stop saving. No matter the amount, just save.

 

Share the rent

Share the rent

If you have just finished college, you will probably not earn enough to pay for an apartment on your own. The solution, look for roomies! Remember, the ideal is that you use a maximum of 30% of your income to pay the rent.

 

Plan your menus

Plan your menus

Stop spending on eating out. If you don’t know how to cook, use the internet. There are thousands of easy recipes that will help you save at the same time. Plan what you will eat each day so that you save when shopping.

 

Use credit cards wisely

Use credit cards wisely

Remember, they are not extra money. If you need to buy appliances for your new apartment, do not finance them in many installments and most importantly, make sure you have a card that charges you low interest. If you do not know if that is your case, check it by comparing the market cards and stop using the wrong one.

As a last tip, the best thing you can do is start projecting yourself until half a year before the desired independence. Plan it in advance, so you will start to see the prices of things and the idea will gradually become more real.

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