Moving out of your parents’ home is a big step. The expenses to consider when living on your own may seem overwhelming, but you can handle them. Learning to budget is challenging for many, but you’ll get good at it once you’re responsible for your bills. Read on to learn more about what expenses you’ll to cover when you’re living on your own.
Housing or Rent
One of the biggest monthly expenses when living on your own is the cost of housing. Whether you buy a home or rent an apartment, you’ll put a good deal of your income toward it. If you manage your money well, you can afford to live in a space that costs about a quarter or a third of your income. You’ll also need to factor in renters or homeowner’s insurance.
Insurance
You need it for everything. One of the most surprising expenses people forget when creating a budget for living on their own is insurance. When moving out on your own, you should find a reputable renters insurance agency if you don’t plan to buy a home right away. Of course, if you do buy a home, you’ll need homeowners’ insurance. Other types of insurance to consider include:
- Health insurance
- Life insurance
- Automobile insurance
Utilities
There are other smaller bills when you’re living on your own that you’ll need to pay, too. If you rent, you may find a place that covers the cost of utilities, but homeowners must pay for each individual service. Also, you must pay on time if you want to keep your utilities. You may pay monthly for:
- Water
- Gas
- Electricity
- Cable
- Heat
- Internet
Food and Groceries
Another regular expense is food. Feeding a family isn’t cheap, so check out deals in local ads to find ways to save more. You can eat out on a budget, too, if you utilize coupons.
Furnishings
Furnishing a new place is a common expense many people forget. Even if you take items from your childhood home or dorm to your new place, you may need more furniture to fill your space. You can shop secondhand for good deals on sturdy furniture.
Personal Expenses
You’ll also have to deal with personal expenses. Once you start paying your way, you’ll find out how expensive of a lifestyle you can really live. Common costs you’ll come across include:
- Subscriptions
- Phone bill
- Credit card bill
- Medications
The main expenses to consider when living on your own are utilities, housing, food, and insurance. The various types of insurance you’ll need can be difficult to manage. Find an agency that will help you navigate the waters. Contact Saferoad Insurance today for help acquiring the coverage you need.