Being on your own versus living with Mom and Dad
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This is the continuation of the previous article on Financial Tips for New College Grads.
It’s a Big, Cold World Out Here
You didn’t expect life on your own to be perfect. Still, you didn’t realize it would be so much hassle. If living independently isn’t turning out to be what you had expected, try to relax.
No two people want to live exactly the same way. Some prefer living with a group of roommates; others just want to be by themselves. Some practice orderly, strict schedules; others eat and sleep when the mood strikes. There are as many lifestyles as there are people. We vary greatly in ethnicity, health, geographical location, sexual preference, relationships, religion, and many other areas. The trick is to find out how you want to live and how it’s most financially feasible for you to live in that way.
If you live by yourself and are lonely or worried about your safety or your financial situation, maybe you should think about getting a roommate. Even if you have to move to a bigger place and don’t end up saving much money, you may be more comfortable and happier living with someone.
If, on the other hand, you live with someone or with a group and are unhappy because of that, it’s time to start looking for your own place. You’ll probably have to move to a smaller, less expensive apartment, but you’ll probably think it’s worthwhile to be able to live by yourself. Only you can know what’s best for you both personally and financially. You must reach a balance between the two in order to achieve maximum happiness.
A Look at Where You Are
There’s good news and bad news for those starting out on their own and trying to get established in today’s marketplace and in society. The good news is the economy. The unemployment rate hasn’t been so low in decades, and jobs, especially in certain areas such as engineering and computers, are there for the taking.
The bad news is that many of you are starting out with significant debt. About half of the college grads in this country have borrowed money to pay for their educations, and the average college debt is between $12,000 and $15,000. If you’ve opted for graduate work, your debt can be much, much more. Even if you don’t have to start paying on that debt for several months, it’s there, looming over your head like dark clouds before a thunderstorm or sex scandals around Bill Clinton.
And your college loans might not be the only money you owe. Because credit cards are so accessible to students these days, and because marketers are so good at making us think we have to have so many things, credit card debt among recent college grads is at an all time high. The situation has gotten so bad that some students are leaving college to get full-time jobs in order to pay off their credit cards.
In addition to worrying about paying off debt, you’re looking at a lot of expenses at this point of your life. If you’re just renting an apartment, you need a couple of months’ rent, plus a security deposit. A little furniture would be nice, too. We’re talking significant money.
Maybe you need to buy a car to get to and from work or at least round up enough money to pay for the bus every day. Also, you’ll probably have to replace some of your jeans and sweaters with career clothes. Speaking of careers, you probably won’t be pulling in $60,000 or $70,000 to start. Your salary doesn’t seem to stretch very far when you think about all the things it has to pay for.
Mom and Dad might be pretty interested in your new job and where you’re living and with whom, but they probably aren’t being much help financially these days. Better face it, your time of being fully financially supported is over. Lest we paint too glum an economic picture, you should know that many 20-somethings are on their own and doing just fine. Let’s take a look at the flip side.
Next in the Series is about how to strike a balance between lifestyle and finances. Please do subscribe to my RSS to get newer updates.
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