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Financial Tips for Living on Your Own

Here are some money tips for living solo!

Whether you're leaving the nest for the first time or embarking on a new independent adventure, managing your finances is a crucial aspect of living on your own.

In this blog article, we'll explore some essential financial tips for those who are venturing into the world of solo living. From budgeting to investing, these tips will help you navigate the financial challenges of independence with self-confidence.

Create your budget

Having a well-thought-out budget provides you with a solid foundation for your finances. Your budget should be your go-to guide to your monthly spending and money management habits. To begin creating your budget, list all your sources of income. According to Bankrate, “the average weekly earnings for individual, full-time workers in the second quarter of 2022 was $1,041, which, if annualized, would be over $54,000 a year.”

Next, list all your regular expenses, such as rent or mortgage, utilities, groceries, transportation, and any other fixed costs. Need some help staying on target? Our free budgeting tool, Money Management, gives you a 360-degree view of your finances.

Build an emergency fund

Another important financial tip for living on your own is to build an emergency fund. Life is certainly unpredictable and unexpected expenses such as medical bills, car repairs, or even unemployment can throw a wrench into your budget. To counteract those surprising expenses, it’s important to build an emergency fund. For your peace of mind, you should aim to save about six months of living costs to cover the regular expenses previously mentioned.

Set your financial goals

Other than building an emergency fund, you should set some other clear financial goals for yourself. Identify what you want to achieve, whether you want to save for a down payment on your own home, pay off your student loans, or plan your dream vacation. Make sure your goals are specific, measurable, and relevant to where you envision your financial journey going. If you need help getting started, jot your ideas down on our financial vision board.

Manage your debt

Have some outstanding debt? That’s ok! Managing your debt wisely is important to your financial well-being, especially while living on your own. But what debt should you pay off first? There’s no right answer to this question as your debt repayment strategy is up to your discretion and situation. If possible, allocate extra funds from your budget to go directly towards your outstanding debt.

Start saving for your retirement

It's never too early to start saving for retirement! To get started, you can contribute regularly to retirement accounts, such as a 401(k) or an Individual Retirement Account (IRA). Also consider taking advantage of any employer matching contributions when available. The sooner you start saving for retirement, the more time your investments have to grow.

If you’re living on your own, finding a way to manage your money can be difficult and stressful to navigate through. Implementing these financial tips can help you thrive while living solo.

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