You don't quite realize how many expenses your parents are responsible are for until you move out and have to pay for them yourself. If you are planning on moving out of your parents' house soon, here are some expenses you should be aware of before taking the leap into adulthood.
Monthly Housing Expenses
When it comes to housing, you want to live somewhere affordable, safe, and nice. Sometimes it's hard to find a location that checks all three of these boxes. Did you know that the average sales price in Manhattan was $1.9 million for condos in existing buildings in the third quarter of 2017? Sometimes it costs to live in a big city.
Apart from finding a place to live comes its monthly expenses. Apartments can cost you rent, utilities, and internet services if your landlord or apartment complex doesn't cover each of these expenses. You may even need to pay a parking fee. It's important to know roughly how much you will need to set aside each month for housing expenses. Aside from these basic and necessary bills comes other expenses that come along with living in your own apartment or condo.
Other Housing Expenses
When you first move into your apartment, you'll need to make some one-time but costly purchases. These include kitchenware, furniture, cleaning and bathroom supplies, decorations, air conditioning units, and more. These items can add up, so be sure to look second-hand or ask family members for used items that can be useful to your new place before heading to the store.
On a weekly basis, you'll need to purchase groceries, buy gas for your car if you have one, and set aside spending money for shopping excursions and nights out with friends. On a monthly basis, you may need to buy laundry detergent, dish soap, batteries, and other smaller but often forgotten items when it comes to crafting a personal budget. Other unexpected finances that you can't quite plan for will also come up, so be sure to have enough money saved up to cover a basic household or emergency expense.
If you have a car, some basic expenses include gas, insurance, and oil changes. Gas may be a weekly expense, insurance may be a monthly expense, and you may need an oil change every few months depending on how often you drive. Also, be sure to always have money set aside for a car issue, such as replacing brake pads, purchasing new tires, or fixing a broken window.
Aside from basic car expenses, you may forget about what would happen if you were in a car accident. In California, drivers have 10 days, including the day of arrest, to properly request the hearing by calling the local driver’s safety office. Whether it was your fault or not, and whether you were arrested or not, high expenses can result from a car accident. Between legal representation, car repairs, and possible arrest, you do not want to be caught in the middle of this kind of situation. Once you've moved out of your parents' house and are out on your own, you are responsible for your own well-being, so keep this in mind when you are driving. Be careful and don't put yourself in a situation where you can get hurt or where you will have to pay enormous bills for something you could have easily prevented.
Are You Going to Have Children?
Perhaps having a child is not something on your mind right now, or perhaps it's something you are planning on pursuing in the next year. Have you thought about the many expenses that come with having children? Aside from basic baby supplies such as diapers, baby clothes, a crib, and baby food, there are numerous other expenses that come with having a child that are further down the road - but you may need to be aware of them sooner than later.
Did you know that, of the 4 million people in the United States that are wearing braces, 75% of them are younger than 18? Your future child may need braces, too, due to crooked teeth or an overbite. Other costs your future child will entail include clothing, shoes, and a bedroom full of furniture and decorations. You may choose to enroll your future child in daycare or private pre-school, too. Children cost a lot more than people may think, so be financially aware of what parenthood entails ahead of time.
With careful budgeting and an ability to say no to unnecessary purchases, your finances can remain stable and you may even build a healthy savings account by the time you want to have a child. Adulthood is pricey, so be aware of your weekly and monthly expenses and be prepared for the unexpected, too.