When you reach the legal age, chances are you would be anxious to leave home and live an independent life. But moving out is a life decision that should not be taken lightly. The pointers below and a free credit check should give you a good head start to determine if you are financially ready to move out.
1. You Can Cover Your Bills on Your Own
While living on your own gives you the freedom to watch whatever you want on your living room TV without the curious eyes of your mum and dad, it also entails heavy responsibilities, such as paying utilities, transportation costs, grocery, and rent. Write down an estimate of your monthly expenses when you move out and make sure you can cover your emergency fund and miscellaneous expenses, such as tolls and vacations.
2. You are Practically Debt-Free
Wanting to live an independent life when you’re deep in debt is not a practical idea. You are probably in such a situation because you used to splurge on clothes, entertainment, and other luxuries while you were living with your parents.
If that’s the case, you may want to consider putting your plans on the back burner and stay with your parents while digging your way out of debt. Don’t be pressured into keeping up with your peers who have already moved out. There’s no shame in asking for help from your parents.
3. Your Credit Score Is Flawless
Especially if you’re planning to apply for a mortgage, you want to have a clean credit score to get your loan approved. Don’t ruin your credit by not paying your bills on time or completely disregarding your utilities.
FACT: You have more than one credit score, and they’re usually different. It’s good practice to compare your credit scores to make sure your record is clean. Make it a habit to check your records through a free credit check online.
4. You Have Enough Money for the Fees
Before you can move into your new home, the landlord will ask you to pay the first and last month’s rent. They will also ask for deposits and other rental fees. Make sure you have enough money in your bank to ensure a smooth transition.
Additionally, you want to protect your property in case of unfortunate events or natural disasters. While it’s not always necessary, it is highly advised that you get renters insurance for your complete peace of mind.
5. You Have Set up an Emergency Fund
Many young adults fail to save up for emergency funds because they think they can easily ask their parents for money in case of emergencies. But this one factor makes the difference between a person who is ready to move out and who is prepared to be genuinely independent.
BONUS: You are ready to Compromise
Especially if you have financial restrictions, you would probably end up sharing a living space with someone else to escape from paying a higher rent. Be sure that you’re mentally and emotionally ready to compromise your comfort zone.
Sharing a space with another person, whether they are a stranger or someone you have known for a long time, can be daunting. You need to live with their quirks, standards, cultures, and beliefs, if you don’t mind living with someone whose habits and values are not much like yours, then, congratulations! You’re truly ready to move out of your parents’ home.