Today, it’s not uncommon for young adults to continue living with their parents well into their 30s. A report released in 2015 by the Pew Research Center said that 32.1% of adults from the ages of 18 to 34 were living in their parents’ home in 2014, the most common type of living arrangement for people in this age range.
But there does come a day when it’s finally time to leave the nest. And before you do that, you need to be financially healthy enough to make it on your own.
Here are five money moves you need to make before you leave your parents’ home.
1. Practice Paying Bills
Paying a mortgage or rent is an important financial responsibility, but it’s not the only bill that adults face when moving out on their own. There are groceries to buy, car loans to pay off, utilities to cover, and transportation fees that eat into monthly budgets.
To prepare for the rigors of paying these bills, you should practice being financially responsible before moving out of your parents’ home. This might mean paying monthly rent to your parents while you continue to live in their home. You should also ask if you can contribute financially in other ways, perhaps by paying part of the monthly utility or garbage pickup bills.
By paying at least some of the bills that your parents face each month, you’ll get a much more accurate taste of what it’s like to live on your own.
2. Create a Budget
No one enjoys making a household budget. But a budget serves as a blueprint that tells you how much you can spend each month. Without one, it’s easy to run up debts as you spend more…