Spreading your wings: Preparing to live on your own

For many young adults, moving out of their parent’s home is both exciting and stressful. Fortunately, proper preparation and sound financial planning can reduce stress and prevent hiccups.

First, you’ll need a steady job that provides enough income to afford rent in your area. For some years, the general rule has been to spend no more than 30 percent of your pre-tax income on rent.

If you earn $15 an hour, you’ll bring in roughly $2400 a month (before taxes), meaning you should spend $720 or less. In practice, it’s best to spend less, especially if you have student loans or other necessary costs.

You’ll also need a reliable form of transportation, such as a car. Besides getting to and from work, you may also need transportation to run errands, such as buying food. Financial experts recommend spending no more than 15 percent of your take-home pay on a vehicle, including loan payments, insurance, registration costs, parking passes, gas, and whatever else.

Ultimately, it’s wise to draw up a working budget that includes all your necessary fixed expenses, including rent, utilities (including internet and a phone plan), student loans, transportation, and other necessary costs. You’ll also want to build an emergency fund worth at least three months of wages. This way, if an unexpected expense emerges, such as expensive car repairs, you can cover the costs.

If you’re moving in with a significant other or some friends, you’ll want to find housemates that are also financially responsible. Further, you should have plans in case a housemate moves out unexpectedly. Can you cover rent and utilities on your own? Do you think you can quickly find a new housemate?

Keep in mind that you may need to furnish your new abode. Family and friends may be able to donate some stuff. It’s also smart to check the Salvation Army and other thrift stores.