Living on your own: Dealing with bills

You can’t wait to move out of your parents’ home and venture out on your own. Though you love your independence, you’ll soon realize that it comes with a price tag. There is a lot to learn when living on your own and it’s more than just paying the rent.

Here’s some common expenses you should know about when you’re living in your own place.

Before moving out

Consider these questions before you move out for the first time:

• Can you cover your bills?
• Do you have an emergency fund?
• Do you have renter’s insurance?
• Will you have a roommate?
• Do you have money for rental fees and deposits?
• Do you have any furnishings?

Estimating your monthly living expenses

Determining your budget for rent, there isn’t a one-size-fits-all answer. The cost of renting varies depending on geographical location and individual needs or financial situations. A good way to budget for rent is to avoid paying more than 30% of your income. You may consider living alone is the best; however, you may want to consider a roommate to help split living expenses depending on where you live.

Remember when you find a rental, you’ll have to pay a security deposit. This may be one-month rent or first and last month’s rent. You may also have a rental application fee.

Determining your utilities

The first thing you should do is find out whether you’re responsible for any utilities for your rental. Depending on the unit, your water and sewage bill may be included in the rent. However, if you rent from private owners or a house, you may be responsible for:

• Water
• Sewage and garbage collection
• Electricity
• Natural gas or oil
• Cable or internet service

Purchasing renter’s insurance

To protect everything in your rental, make sure to purchase renter’s insurance. Most home insurance or property insurance policies may not cover a renter’s property. This type of insurance covers your property and belongings from natural disasters and may also help if you are burglarized. Before moving into a rental, get a quote for renter’s insurance in the area you’re looking to live in.

Budgeting food

Eating out frequently can really hurt your budget. Make sure to plan out your meals. Not only will you save money, but you’ll also have a healthier selection of foods. Some cost-saving tips include:

• Shop around from discounted food bargains.
• Plan a menu each week.
• Cook once a week to create leftovers
• Join a home-delivery service that offers recipes and ingredients at your door.

Getting the basic home essentials

Your rental may not be furnished so you’ll need to stock up on the basic home items and essentials including:

• Living room, dining room, and bedroom furniture.
• Towels and bathroom linens.
• Cookware and bakeware.
• Dishes and utensils.
• Small appliances such as a microwave or coffee maker.

To save money, consider purchasing your home items from a discount store or second-hand shop.

Paying for transportation or parking

Remember you’ll need to budget for gas, auto insurance, and car maintenance and repairs. If you don’t own a car, you’ll have to include public transportation costs such as the bus, train, or car services.

Dealing with existing debt

Don’t forget to budget for any existing debt such as auto loans, student loans, and credit card debt. Make sure to include these in your new budget to determine how much rent you can afford.

Keeping yourself entertained

You should leave some wiggle room in your budget for entertainment costs; however, make sure to set limits so it doesn’t interfere with your rent, utilities, and food. Keep in mind you’ll have some monthly expenses that you normally may not think of. These include:

• Laundry or dry-cleaning costs (especially if your place doesn’t have a washer and dryer).
• Luxury items such as going to the movies and traveling.
• Personal care and hygiene.

The information in this article was obtained from various sources not associated with Adirondack Bank. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. Adirondack Bank is not responsible for, and does not endorse or approve, either implicitly or explicitly, the information provided or the content of any third-party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. Adirondack Bank makes no guarantees of results from use of this information.