Longing for Independence? Financial Tips for Fleeing the Nest!

Maybe it’s the way you no longer fit so comfortably into the twin bed that nestled you tightly throughout your childhood. Maybe it’s because you’re tired of explaining to your parents where you’ve been all night and why you’re coming in at 2 a.m. Maybe you’re simply ready to admit it… you’ve been adulting for quite some time and it’s time to rent or buy your first home and live on your own.

Whatever your reasons are for wanting to leave the nest, if you want to make sure that you’re not flocking back in the near future, you’ve got to be prepared. So, turn up the adulting to new levels and follow these three tips for spreading your wings:

1. Make a Budget

And, you thought that simply getting up and making it to work on time each day was enough. Before you move out of your parents’ home, make sure your finances are in order and will support your move. Track your income and spending habits for a few months before simply fleeing your cozy coop in search of freedom.

Not sure what to include in your budget? Potential rent or mortgage payments are a must, along with utility costs; but, you can’t forget to include things like credit card bills, car payments, groceries and gym memberships. Of course, living on your own isn’t meant to be miserable, so include some extras like entertainment and shopping, too. If you think manually tracking your spending via Microsoft Excel is a stone-age method, try user-friendly apps like LearnVest or Mint for your budgeting needs. 

2. Keep a Budget

So, here’s the thing about making a budget; it’s simply not enough to just know what money you’ve got regularly coming in and going out. Once you’ve got a handle on that financial information, set a few limits that also will allow you to save some money. Because, in addition to all of those regular expenses, you’ve got to do a little thinking about your future self! Now, look at you adulting!

Whether you’re directly depositing a portion of each pay check into a savings account or stashing an end-of-the-month surplus, secure your financial future by saving some money! Yes, you can do this on any budget. If you’re coming up short on your savings goals each month, delve a little deeper into that budget you created. Maybe it’s time to nix your morning coffee run, cut out a few happy hours or cancel your rarely-used gym membership!

No matter how difficult saving seems, you’ve got to think long-term here. You’re leaving the nest to live on your own, so you’ve obviously got #futuregoals. It’s time to get the finances to achieve them!

3. Expect the Unexpected

OK, so you’ve created a budget, you’re doing a fairly good job of sticking to it and BAM, you’re faced with some sort of financial crisis… Fido falls ill and requires some serious vet attention; you lose your job; Mother Nature wreaks havoc on your new home. Ugh, welcome to some serious adulting. You may think you have all of your financial ducks in a row when you’re slapped with an unexpected hurdle.

In addition to saving for your future, you’ve got to save for the ultimate in rainy days, too. Creating an emergency fund is paramount to prudently living on your own. As you’re socking money away for future expenses like buying a home, traveling the world or whatever else, create a separate account that is to be used solely for emergencies.

A final thought on spreading your wings, leaving that comfortable nest and living on your own… you’re not the first little birdie to do this. In fact, we’re willing to bet there even was a time that your very own parents were in your shoes (as much as you may not want to hear that!). Don’t be afraid to ask for or simply accept advice on living on your own when it is being offered.

Now, keep your beak up and flap those wings… you CAN do this!

This post is sponsored by PA Preferred Mortgage:

Pennsylvania Preferred Mortgage is a full service mortgage banker and is a member of the Prosperity Home Mortgage, LLC family. Specializing in residential and refinance loans, Pennsylvania Preferred Mortgage offers a wide range of mortgage products, including fixed and adjustable rate mortgages, jumbo loans, Federal Housing Administration (FHA) and Veterans Affairs (VA) loans, and renovation financing. Learn more at www.papreferredmortgage.com.