Are you moving out of your parents’ home for the first time? Are you worried about your budget? It can be difficult to know how much you should be saving for the future, how to protect your credit score, and how to protect yourself from identity theft. Follow these important safety tips as you head out on your first big adventure as a young adult.
Planning Your Budget
When moving out on your own, you need to carefully plan your budget. Calculate your monthly income and expenses, and make sure your expenses are lower than your income. Avoid making large purchases with your credit card, and be sure you completely pay off your card each month. Paying your credit card bills on time will build your credit score, and you’ll have no trouble getting approved for a vehicle purchase or a down payment for a home. If you have credit card debt, focus on paying it off as soon as possible.
Make a Savings Plan
Once you have your debts paid off, create a savings plan and put at least 25 percent of your income into savings. Put this money aside as soon as you get your paycheck, or set up a direct deposit to your savings account so you can save without even thinking about it. Start with an emergency fund, and save several months of expenses. In the event of an injury or a change at work, you’ll have enough money to help you get back on your feet. Set a long-term savings plan, and create savings goals for education, retirement, or a down payment on your first home. Prioritize savings to give yourself better options for the future.
Saving for a Down Payment
Many young people dream of owning a home one day, and if you’d like to purchase a house in the next few years, you’ll need to start saving for the down payment. Not only is real estate a great investment, but you’ll also get to enjoy creating a place of your own, and having a home to raise a family. Saving for a down payment takes a lot of planning, and you’ll need to carefully follow your budget and stay on track with your savings goals.
You can easily find ways to save more by shopping for bargains and adjusting your spending, eating at home more often, and raising the percentage of your paycheck that goes directly to your savings account. Additionally, you can pick up extra shifts at work, find seasonal work, or get an extra weekend job to meet your savings goals.
Protect Your Personal Information
Identity theft is more common than ever before. When you first move out on your own, you may not realize how many scammers are trying to get your personal information, or that you’re the target of credit card or identity theft. Protect your personal information by leaving your social media profile blank, and restrict the info you share online. Never share your social security number, especially over the phone. The only people who need this number are your bank, your employer, or a credit bureau. Use a secure password vault and a password generator to create unique, safe passwords for all your online accounts, and use two-factor authentication on your accounts to keep your personal information safe.
To protect your wallet, keep a close eye on your credit cards, set unique pins, and carefully monitor your transaction history. If you notice any suspicious purchases, pause your card immediately, and call your credit card company to dispute the purchases and cancel your card.
Leaving home for the first time might seem stressful, but if you stick to a great budget, follow your savings plan, and protect your personal information, you can transition into adulthood and homeownership with ease and enjoy success the first time you venture out on your own.
Blog Contributor: Chris Haymon, Adultingdigest.com - email@example.com