Welcome back, everyone! Today, we’re here to walk you through another post-grad concept in our series that aims to help you transition from college and into the ‘real world’. For many students, an immediate move is the next best step. Especially for those of you chasing jobs or opportunities in other states, the reality becomes that moving back home for a little while is no longer an option. However, for students who are moving to a city nearby their hometown, are in a transition phase, are trying to figure out the next steps, or for any other reason, moving home might be a GREAT option for you! Keep reading to find out the main benefit of living at home post-grad…
Budgeting and Saving up for a Smooth Move-out!
Above all, the key benefit of staying at home after graduation is in saving up some money from your salary or offsetting some expenses of rent/lifestyle adjustments prior to securing a full-time role. If you are interested in moving to a big city, it likely comes with rent of >$1000, in addition to utilities, groceries, and other common lifestyle expenses. In order to ensure your comfort when embarking on that journey, saving up and living at home is a fast-track resource to get you on your way.
Key Budgeting Tips
- Prioritize: Before you can figure out and customize your budgeting strategy, you must evaluate what activities, hobbies, or materialistic components of your lifestyle are most important to you. This may look like a monthly gym membership expense, eating at restaurants, or a certain amount of money you are willing to spend on new clothing/ accessories. Whatever it is, make a list of your ‘non-negotiables’.
- Plan: To begin planning out a budget, write down your goal for setting aside a certain amount of money each month. With a written goal, you will have a concrete number to designate success and work up to. Additionally, write down your income for each month. Include your job salary and any other work obligations (for college students this may include babysitting, house-sitting, pet-sitting, or any other part-time roles that bring in extra money).
- Create: With a plan in mind and a list of priorities set, you are ready to begin budgeting! When listing out monthly expenses, differentiate those expenses which are fixed (ie: rent, student loans, car payments) from expenses that differ on a monthly basis.
- Extra Tip: Be Realistic! If you are dining out 2-3 times a week, leave a larger budget for that category. However, you must begin to consider sacrificing other expenses in order to be able to save money at the end of the month; think about cutting back on other ‘wants’, like money you may spend on home decorating, clothing, or other “elective” expenses.
- Extra Tip: Use Past Expenses! To get an idea of where your money is spent each month, utilize a past credit card bill, or create a document of all your expenses for any given month. That way, when the next month begins, you will have an accurate picture of how you spend your money and your estimates will be based on facts instead of assumptions.
- Extra Tip: Categorize! Make a list of all expenses. Consider each category you spend money on. When budgeting, be aware of grocery costs, clothing costs, “fun” costs, drink prices, laundry costs, gym/exercise costs, etc. Never overlook expenses just because they are necessary, include everything in your budget plan.
- Consider: Be aware of times during the year when expenses naturally increase. These expenses may include birthday presents, holidays, vacations, tax months, wedding presents, etc. Set aside enough money to utilize during the year instead of having to dig into your income each time you encounter one of these payments.
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