Graduating college is a huge milestone, but moving out on your own, away from dorms and comfortable college-town apartments can be an even bigger step.
If you’ve recently graduated, here are five things to consider before making the big move.
1. Cities are expensive.
Buying a house is expensive, but so are apartments–especially in big cities. Crunch the numbers to see what makes sense. The cost to move into some apartments can practically equal that of putting 4% down on a home! [EDITOR’S NOTE: Include any info on your first-time homebuyer’s program] So when you’re starting out, you might find living with roommates still makes the most sense.
2. If you decide to live at home, make paying off debt and saving a priority.
If you decide to move home with the parents after school, make paying off as much debt as possible a priority, and get a sizeable nest egg under your belt before you move out (Pro-tip: Pay for a bill or two — and offer to do it. Your parents might love you even more.)
3. Make sure your roommates are reliable.
The process of finding a place with two roommates can be stressful to say. Coordinating schedules and making sure everyone feels like they have a say is challenging, and it’s only the beginning. If your roommates are constantly in between jobs or bad with money, it’s best to walk away before it’s too late and you’re stuck paying for their share.
4. Get renters insurance.
Renter’s insurance is smart because it covers all kind of situations, from stolen property to accidental damages. You can also pay for exactly the coverage you need; nothing more and nothing less. Mid Oregon’s Strategic Insurance partner, Cascade Insurance Center, can discuss the best renters insurance for you.
5. Don’t lose those frugal habits.
Just because you’re on your own own doesn’t mean you should live less responsibly. Quite the opposite! In the end, money impacts your ability to really live your life. Set a budget and stick to it, and you’ll be amazed at how disciplined you become in no time.