So you’re grown?! Ready to move out? Here are some things to consider

Are you sick of living at home with your parents? Or tired of throwing money away on renting? Either way, I feel you.  It’s best to financially prepare for moving out so you don’t have to worry about failing and moving right back in with your parents. I guarantee after reading this, you will be better prepared for moving out. 

The 50/30/20 Rule: For budgeting 

Some would argue that this rule is outdated and not practical for today’s millennials But others like myself live by this rule. There’s a reason why our grandparents were able to save so much while having all their bills paid. The 50/30/20 rule is very simple. According to credit karma, The 50/30/20 rule budget only requires you to track and divide your expenses into three main categories: needs, wants, and savings or debt. This reduces the amount of time you have to spend detailing your finances and allows you to focus more on the big picture instead if you want to read more click here.   

Look : 

If your total monthly income is $3,000. 

Expenses 50%

Then your total expenses for the month should be $3,000 x .50, or about $1,500. 

Rent/ Mortgage : $750 

Lights/Power: $100

Food: $150

Water/Sewer: $25

Cellphone: $100 

Child Care: $300

Total: $1,075 

Wants 30%

Your wants for your the months should be $3,000 x .30, or about $900.00 

Clothing: $ 

Shoes: $

Children Shoes

Children Clothing

Going out fund

Shopping fund

Savings/ paying extra towards Debt 20%

Then your savings for the month should be $3,000 x .20, or about $600 

30% Max Mortgage/ Rent Payment Rule 

When applying for a house/apartment remember to the 30% rule. Your maximum you can spend on housing is 30% of your gross monthly income (before taxes or anything is taken out). For example, If you bring home $2,500 a month, then your rent/mortgage payment should be $2,500 x 0.3, or about $750 at the maximum. If you are looking for more information on this topic, click here.