I am currently in 12th grade and I have been wondering what the best way to transition out of college into the “real world” of working and bills to pay.
I have thought about a roomate situation, but is that always the main option?
#after-college
2 answers
Elizabeth’s Answer
For transitioning to the "real world" - before you move out or make any financial monthly commitments (rent, car, insurance) write out a budget for yourself and make it realistic, put everything you could possibly spend money on and you can back it down from there. You would be surprised how much you can actually spend in a month so definitely set a budget and know what you can and can't afford. I know the first time getting out on your own can be very tough and you won't always be able to live the life you did when you had someone supporting you. The last thing you want to do being young is get into debt so definitely budget yourself and always remember to save money for unforeseen expenses like a medical bill or car troubles.
Coming from someone who just started providing for myself 3 yrs ago, this can be a great time and can also be tough knowing all the money comes from you. However, it's an amazing feeling knowing you're young and provide for yourself and don't need to depend on anyone! We almost all struggle a little when we are young in our careers so no worries if that's you - you aren't alone! Enjoy working hard when you are young and setting that budget because it will pay off in the long run.
Scott’s Answer
A roommate can help but also can be devastating. if you rely on the roommate to pay half of the rent and they decide not too, then you are left holding the stick. If you are friends with this person it could ruin a friendship. Couple of things on this. Never put both names on a lease. the apartment is either yours or your roommates not both. If the lease is in your name make sure you can afford the rent if your roommate packs up and leaves. I would also request a security deposit from your roommate to cover any damages. (This may or may not be legal in your area so make sure first.) Just keep in mind you will have to give that money back if they move out. Also carefully consider ground rules and boundary's you would like to have in the apartment. Write them out and make them clear in the beginning. Have both parties sign the rules document.
Now what about not having a roommate. From past experiences this is the way I would want to go. before you move into the "real world" create a real budget. What is it realistically going to cost you to live each month. Include Rent, Car insurance, Gas, Food, electricity, water, cable, cell phone, entertainment, etc.. When it comes to a rental, try to find the least expensive apartment you can that is clean and safe. Apartment managers do not care if they take your last dollar. Their job is to lock you into a lease, once you sign you are on the hook for the full amount even if you cant afford it. My rule of thumb to always remember is that sales people are not your friend. They are not evil and they are not trying harm you but they have a job to do and they do it well.
Now compare your budget to what you are making when you are ready to make the jump. If your TAKE HOME income is not more than your budget you are not ready. You must always live below your means. You never know when an emergency is going to pop up like a flat tire or an unexpected bill. If you are living pay check to pay check it is a recipe for disaster. Also stay away from Credit Cards and loans. They will siphon your pocket dry and most likely will be charging you 20+% in interest. A great free resource for financial questions and information is www.daveramsey.com.