How to Be Financially Prepared Before Moving
One of the most challenging things to do is when you’re moving out by yourself for the first time is making sure you can afford the move and all the expense that come with becoming a renter.
This part of independence is often accompanied by anxiety and stress, partly because you don’t have an exact idea about what to expect when you start to live alone. If you’ve never experienced buy groceries, paying bills, or cooked your own food? Then here are a few these tips on how to become financially prepared before moving.
- Open up a savings account
Although this is just a small step, this will give you a great favor. When you separate your savings from your checking/spending account, it will help you save more and spend less. Just make sure that the money you keep as savings should be out of your sight and out of your mind.
- Save rent money six months in advance
Before moving in, try to research the rental rates in the area where you want to move to and start a stash for the rent for at least six months. It’s easier to save when you are still staying with family.
So, save more money while you still have low expenses. Your brain will also be trained to pay rent monthly, so when you’re on your own, you will find it easy to shoulder other costs.
- Start cooking at home
Many of us love going out and, of course, it always includes your favorite meal, but at this point in your life when you need to become “independent.” Part of that is tightening your belt and putting your finances in the right order.
When you cook at home, you save a lot of money. You can buy groceries at a much lower price than that delicious food at your favorite eatery.
If you can’t avoid going out for dinner with friends, and still want to save some money, maybe you can ask your friends to have a potluck instead of eating out. Invite them to your house, you’ll save some money, and you won’t feel like you’re missing something.
- Make a mock budget
You should learn how to budget. To start with it, make a mock budget. To do this, add all the future expenses that you think you’ll need. List the monthly rent amount, monthly groceries, utilities, and even laundry care. After all, when you move out on your own, all those “freebies” you enjoy from your parent’s house will be gone. It’s wise to estimate how much you’ll spend living out on your own.
Making a mock budget will let you know if you have enough money to cover all of your future expenses when you move out. If you need to make more money, you know soon enough. This way you’ll be prepared to meet all the expected expenses.
- Start an Emergency fund
An emergency can happen any time, and if you’re not financially prepared, you’ll end up borrowing or even worse, you’ll get behind on your financial responsibilities, if not careful you be back in your old room at your parents house again. No one wants this to happen. When you have built an emergency fund, you have the chance of survival and can proceed to live on your own.
- Start accumulating furniture
Accumulating furniture may not be a good idea for everyone, but if you have room to store the pieces, this can help you a lot. When you have a chance to visit thrift stores, you can find new or gently used pieces, and you’ll be surprised by the quality of furniture you’ll see.
When you start to shop for furniture before moving, you’ll have enough time to shop around for bargains and great deals, which is sure to save you money that you get to buy things at your own pace rather than purchasing everything right when you move in.
Don’t forget the day you move in, you’ll be paying a deposit and first and sometimes the last month’s rent, so if you have some of your furniture already, then you won’t have problems paying your first months expenses. You can even think of buying additional things that you need for your new home.
If you want to become financially prepared before moving to a new home, make sure to follow these tips as they can help make the moving process a little easier.