Living on your own can be a great thing. Maybe you’ve always lived with your parents, with friends, with a significant other, or some other situation. Living on your own can be completely different. Your bills will most likely be higher, and you will be in charge of everything.
Below are some of the expenses to think about before you move out on your own.
One of your biggest costs will be either your rent or mortgage payment each month. Even if you pay your house in full, you will still have property taxes and home insurance to pay each month, so always keep that in mind.
Furniture, appliances, and decorations.
If you are moving into a place, then you will need furniture. You might need a couch, coffee table, TV, curtains, dishes, utensils, cookware, a fridge, a bed, nightstand, and so on. The list is really up to you and what you need.
With this category you can save a decent amount of money by buying used and looking on Craigslist or seeing if any of your friends and/or family members have anything that they don’t need. We got a lot of free stuff when we first moved out. Then, we handed it down to others when we bought new items.
Electricity, Gas, Water, Sewer, Trash.
There are many “little” expenses that you will have to pay each month or each quarter that will add up quickly. You will need electricity for any of your electronics, gas if your house uses gas to heat it or heat water, sewer if you own a house (many apartments include the sewer bill in with the rent), and the same goes for the trash service.
Internet and cable.
Internet is something that most people buy, but cable seems to be getting less and less popular. Instead, you might go the Netflix and/or Hulu route and save a decent amount of cash.
Many people don’t have home phones, but you might need a cell phone. Making free calls is always possible and there are ways to make affordable international calls as well.
This is one of the second biggest budget categories usually. People don’t usually think about that until they add up all the costs. You might have a monthly car payment, maintenance (such as oil changes and new tires), repairs, fuel, and so on.
There are many types of insurance that you might need. These include: car insurance; health insurance; home or rental insurance; life insurance, and so on.
Don’t forget about food! Everyone needs to eat 🙂
People need clothes too, of course. This is one category that I’m always trying to cut back in. I am trying to get rid of the many trendy, cheap pieces I have and trading them in for higher quality items that I know will last longer.
Savings and retirement.
This should probably be one of the very first categories. Don’t forget to pay yourself first, save your income, and also save for retirement. There is no better time to save than now.
What other expenses am I missing?
Image via Flickr by ben_salter