Personal finances: Tips to become economically independent

Personal finances: Tips to become economically independent

Personal finances: Tips to become economically independent

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Being economically independent is a very important step in your life and, obviously, in your personal finances; your expenses increase, everything runs on your own, and you begin to notice the real value of all things. Before taking this step, or if you are in the middle of the transition and want to improve your situation, consider these financial tips to make your life easier.  

Before leasing:

#1 Define your budget

It may be tempting to go on and live in the hottest neighborhood, or wanting to live without sharing the space with anyone else. Analyze your possibilities  and determine a percentage of your salary towards a potential lease that does not exceed 30% of your income. Consider also the cost of the deposit. They can ask for between 1 and 3 months of rent.

 

#2 Renting a house or apartment usually requires a collateral

This part is a delicate situation since it usually requires having a deed property. Anticipate this requirement before applying to any place, or seek to share an apartment with someone who already has this requirement covered.

#3 When applying for any lease having a good credit history can be a requirement

Check that you’re not in the credit bureau, and if you’re already there, look for potential roommates that  already have a contract so you don’t deal directly with a landlord. And take care of your credit situation!

 

#4 Make sure there aren’t any outstanding utilitie debts

Pay close attention that the house or apartment you are interested in renting, or buying, do not have maintenance, electricity, water, telephone, or any other utilities outstanding debts. You can ask for receipts and vouchers to make sure everything is up to date. Try to make sure of this before signing any contract.

 

#5 Pay your utilities in time

You now will be responsible for all the basic services of your home: electricity, water, gas, internet. To avoid any awkward situation or service cut, automate your payments so you will not have to worry about paying before the cutoff dates.

# 6 Plan your purchases: when it comes to furnishing, don’t fall into debt to buy everything at the same time; assess well what should bought in installments, what things are essential and what things you really don’t need. Track the prices of the things you want, and follow the seasonal offers; furniture and appliances tend to have great offers and payment plans.

# 7 Your transport: with your new address your work rout may suffer some adjustments; if your means of transportation or your route to work are going to change estimate how your expenses will be affected.

Find out the option that suits you without affecting your personal finances.   

# 8 Household expenses: something that is easy to forget and include in our budgets is food; we are not used to think about how much our meals cost because we have them so accessible, that is hard to give them a value. Ask your parents for help, and together make an estimate of what you will spend weekly on your groceries.

The same applies for other expenses we don’t considerer like cleaning or repairs. Whether cleaning your house, washing your clothes, fixing a leak of water or gas; any cleaning and maintenance costs come with a cost.

There are many apps that can help estimate some unconsidered costs so that you always consider them when making your budgets.

Being independent is very exciting but it’s also a process full of challenges and changes, so before taking this important step, make sure that both you and your personal finances are ready, so you will not have to suffer or improvise. Adult life is full of responsibilities, and unattractive commitments that may  take the charm off your new experiences. With Glass I take this first step towards adulthood with your money in order, with Glass on your side, no drama and no suffering.