Leave the nest.
However you want to call it, doing that is a larger thing than you might realize. Sure you might still be supported by Mom and Dad or perhaps you’ve taken out a loan to go to college or university. Whatever the case is, there’s a lot to it than that.
The decisions that you make before you move out will impact your life massively in the future.
And those decisions could very well impact your own finances as well. So today I want to focus on things that’ll improve your finances. Simple tricks that if you continue to do them in the future will pay you dividends in the future.
Visualize The Life You’ll Have
The first most important thing before you move out is to imagine the life that you want. Now for many of us, we visualize something a lot loftier when we think that.
I’m not looking for the lifestyle that you deeply want to get some day. I want you to visualize the life you want to have right now.
If that makes any sense at all.
What I’m getting at is to visualize what you want, but place a restriction on it based off of your current finances. Everything from what you’ll do for the day to day to where you’ll be living.
It might not be exact, but the whole idea with this is to help you figure out some key things that you’ll do moving forward.
In general, visualizing will generate you leads and can determine if you are ready to move out or not.
Essentially it gives you an idea of the life that you’ll get when you decide to move out. And that’s pretty important because it can tell you whether you can afford to live like that.
Budget And Forecast
The second thing you want to do is budget. But you want to go a step beyond that as well. To the point that you’re not only budgeting, but you are forecasting as well.
This is something that I’m personally doing right now, as I am planning to move out of my parents home by September this year. It’s a pretty big leap, but I know I can take it solely because of this habit.
I visualized the life that I can get (with a little bit of what I’d like to get into) and started to map out prices. From there, I looked at potential expenses and made a rough estimate of monthly costs.
I then compared that to the money that I’m earning currently. Everything from my monthly earnings to what is sitting in my bank account right now.
Taking this step is important to do before you move out is so important because it gives you a direction. You have a good idea of what sort of work you need to do to comfortably afford the life that you’ll get.
It also gives you an idea of what you have to do to get there as well.
But budgeting offers more than that as you move along. By budgeting on a regular basis you can identify if you’re going off budget or not. Budgeting gives us an opportunity to look at our habits once we have moved out and assess if things need to change.
For example, right now I have no budget at all for dining out. It’s something that I think I will never do once I move out. I’ve visualized in my life that I’ll be cooking everything.
But like many of us, we’re probably going to have a cheat meal or two over the month.
Or maybe several.
While dining out is certainly dangerous for our health in many ways as this stellar article suggests, it’s also dangerous for our wallets.
This applies to all sorts of expenses that we didn’t put into our budget.
So budgeting in this sense is helpful because it reflects our expectations. From there we can move back to those expectations or make adjustments to the budget itself.
I’ve been planning this for a long time now and as a result, I’ve been taking this habit to heart early. Since last month I’ve been conscious of my spending and I’ve been limiting it heavily.
It’s paying off as I have well over $1,000 in my bank account right now. And while that’s not a lot, do keep in mind that I’ll be working to save money for the next several months.
When you move out, you’re bound to run into unexpected expenses. As I said above, you’re going to get a rough idea of how much your expenses will cost. And while many sites will have prices, the reality is you don’t know exactly how much everything will cost.
Sure you might know how much internet will cost, but what about electricity? What about groceries?
The cost of living fluctuates and as such you want to have a little bit of a cushion. That’s where saving money comes in handy. If you’ve planned far ahead like myself, you can look at your current earnings and figure out how much you’re making from month to month. This is important because you’ll get a rough idea of how long you can keep your lifestyle up without doing any work.
That’s not to say you’ll do no work, but if something unexpected happens, you can support yourself for a number of months.
But saving money also works wonders after you have moved out as well. It’s an opportunity for you to assess your standings and make adjustments to your budgeting. This is especially helpful to those who’s earnings are more flexible than a typical day job bi-weekly earnings.
Minimize Your Life
At least a little bit.
I’m not saying you need to live a minimalistic lifestyle but downsizing your life can be helpful. It’s a way to destress and also a good way to get more change. The reality is that over the months and years, we have a tendency to accumulate stuff. Maybe not to the level of hoarders but there are so many cases where we buy something and just never use it.
This also applies to practical things as well and some of the reasons can be silly. A few years ago I bought my mom a higher quality broom to sweep the floor. You don’t even need to bend down to sweep up the mess. My mom has yet to use the broom because we already have a broom. I knew this, but this one is clearly better and was meant to replace the older broom.
My point is, despite our intentions when we buy items, sometimes our intentions don’t stick. And in those situations, we just have a bunch of stuff. Stuff that we can remove from our lives and maybe walk away with a little bit of extra cash as well.
This habit also helps after the move out as well because no matter where we go, we have a tendency to accumulate. Sure you may have a tighter budget when you move out, but that’s not stopping you from buying a few odds and ends once in a while.
Keep In Touch With Your Parents
Even if you’re not moving that far away, it’s important to be keeping in touch with your parents. Or at the very least someone of significant importance to you. After you move out, it’s easy to be going through the motions. And let’s be honest here, it can get pretty dull pretty fast.
Maintaining a connection with your parents is key because you typically have a stronger connection with them. You’re able to share your thoughts, be yourself, and they can lend a helping hand.
Our parents were once in similar situations as we are now and can pass on sage wisdom.
Or in some other cases help you out financially.
I’m not saying to exploit your parents and piggyback on them constantly, but in times where money is tight or you’ve hit a rough patch, it’s good to know someone has your back and will help you out.
And keeping in touch with them and chatting with them is a good way of returning the favour.
Do These When And After You Move Out
The habits that we build moving forward define who we are and where we are going. When you move out, you’re putting everything that you learned to the test. On a financial level, it’s key to have some solid money habits, but also to have back up plans when needed. It’s why I encourage you to keep in contact with people who have your undying support and to visualize the life you can afford. On top of that having practical money habits will help you before, and after you move out as well.
To your growth!
Eric S Burdon