How do people ensure themselves a financially stable future? How can I as well?
For example, I was always confused how people automatically move out of their parents' house and start supporting themselves right after receiving a job. When someone starts working, I always feel that it may be too early to start finding a home since a person wouldn't have too much money to begin with. Can anyone explain why this happens? I will try to clarify if anyone is confused. #finance #jobs #employment #support #houses
6 answers
Bill’s Answer
It is all about how much money have you already saved and then living within your means. You have to set up a budget and figure out what you can afford. You know how much you are making per month from your job then you have to estimate your expenses and you have to live in a way that keeps your expenses in line with your income. it may mean that you don't have the nicest apartment to start out, you may not be able to afford cable, etc. it is really about understanding what is a NEED (food, shelter, etc) and what is a WANT (nice car, fancy closes, etc.). You can live a very comfortable life without a ton of money if you live within your means. Stay in a small less expensive apartment until you can really afford something bigger or nicer; drive and take care of a basic car for as long as possible. Understanding what you can and cant afford will help you live with less stress and better prepare you for your future.
Gail’s Answer
Hi Amina,
It depends on a few things. Did you have a job while in college and save the money? Do you have other savings? Is it enough to pay for six months of expenses (rent, utilities, food etc). If so, you can move out when you get a job.
How good a salary did you negotiate for your first job? Can you still live at home and save that money so you have six months of expenses? You can see the theme - have enough to cover a disaster such as your first job not working out.
I'm in IT and it pays pretty well, even for entry level so I could live on my own. However, I lived with roommates so we could split the rent and utilities. My son got a good paying job but rented a room to save money.
Good luck!
Amanda’s Answer
The advice above is great! If you want to move out after graduation start saving.
Many students are able to work and save while going to college which helps them move out on their own once they graduate. There are also a lot of employers that offer relocation and starting bonuses. You can use those to put down a deposit on a place.
Michael’s Answer
The first thing is educate yourself on financial freedoms and strategies for wealth. (recommend Dave Ramsey's "Full money makeover")
This education will guide you to knowing how much you would need to save and how long you would need to save before moving out on your own.
The next thing to consider is the necessity of moving out on your own. If your parents do not mind you staying under their roof then use that time to save money for the future.
The last thing that would help with the decision to move out would be find friends to move in together at a place. This would keep the cost lower so that extra income can be invested into the future.
The downside of friend roommates would be bad living habits and struggling to pay portion of the rent from either party.
With a good plan and understanding each party should be able to mitigate those issues.
Ken’s Answer
Hi Amina!
You are asking a very important question! Here are some tips from pros:
https://www.themuse.com/advice/4-simple-ways-to-take-control-of-your-budget
http://www.wikihow.com/Become-Financially-Stable-in-Six-Months
