It’s not always easy to become an adult. Whether it’s budgeting, paying off loans from school, or using credit cards, it’s tempting to rely on help from your parents. However, more and more young people are looking to be financially independent. The good news is you can take it one step at a time.
Prepare for a Well-Paying Career
It’s hard to be financially independent if you are barely earning enough to live on. That’s why it’s a good idea to prepare yourself for a career that will allow you to bring in enough income. Start doing some research on the best careers to fit your goals, skills, and financial needs. You may find you need a degree for some or all of these industries. As college can be expensive but you can utilize Going Merry scholarships with a search and application platform to find and get matched to available scholarships and grants. You can build your profile, get matched to scholarships and apply for some.
Preparing to Move Out
If you are not already paying rent to live with your parents, you can prepare to pay rent each month by depositing a similar amount in a separate savings account every month. In addition to learning money saving tips, you will get used to budgeting this amount each month, and the amount can be used toward an emergency fund, which is critical when you are paying all your own expenses. If you are renting from your parents, you can ask if they would allow you to use the money toward student debt or putting it into a savings account. They may be more willing to allow you to do so if they know you are taking active steps toward living on your own.
Creating Your Own Bank Account and Credit Score
You might have previously set up a bank account that had your parents’ names on it and still have it with them. However, when you are paying your own way, you might find it is helpful to create a separate account for yourself. You and your parents might need to go to the branch in person to take their names off of it. On the other hand, you might be able to set up another account and simply transfer the funds into that new one. Then you can close the old account. It’s a good idea to let your parents know what you are planning so they stay in the loop.
Consider getting a credit card when you set up your account. You might be able to get a secured credit card if you don’t qualify for a regular one. This allows you to build credit, which is critical for qualifying for apartments or taking out any type of debt. You can also take out a credit card under your parents’ names. If their credit history is good, it could reflect positively on your history as well. Paying all your bills on time is another way of making sure you are maintaining good credit.