How to live on your own
Living alone is now officially mainstream. An estimated 27 percent of all households in the United States consisted of people living alone in 2010, according to the U.S. Census Bureau -- a figure that was a mere 17 percent in 1970. Whether you are a new college graduate starting off in your first apartment, or a new empty-nester learning to adjust, sound financial planning will ensure that you can meet your bills, save your money and have a little left over for fun.
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Instructions
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Set a realistic budget, and make sure you live within your means. Although living alone has its good points, it means that you have no one to share the bills with. Before you choose your living quarters, make sure you have a good handle on what you can afford. MSN Money personal finance columnist Liz Weston recommends that you use a 50/30/20 budget as a guideline. Using your after-tax income, allow 50 percent for staple expenses, including rent, utilities, insurance, food, transportation and minimum loan payments. Set aside 30 percent for vacations, clothing, entertainment, eating out and other amenities. Use the remaining 20 percent for savings and additional loan payments above the minimum.
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Be ready for the unexpected. Since the only income coming into the home is your own, you need to be sure you can cover the bills in the case of an emergency, such as losing your job, a major home repair or a severe illness. Prudential Retirement Education and Planning recommends that you save up the equivalent of three to six month's worth of after-tax income to be safe. Start by saving enough so that you can cover three rent or mortgage payments. Continue saving until you have enough saved to cover three months of all of your necessary expenses. That gives you a cushion while you continue to save the additional money needed to cover a full six months of expenses.
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Share when you can.to cut down on expenses. While living on your own may have been your goal, there are times when sharing is appropriate. Perhaps you can share the cost of wireless Internet service with a neighbor who lives close by, set up a co-op with neighbors to get a discounted rate on lawn mowing and snow removal services or simply set up a carpool to get back and forth to work.
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Learn to to do simple home repairs and improvements yourself to save money. Unless you live in a full-service apartment building with round-the-clock maintenance at your beck and call, you will have to pay contractors to help you unless you learn to DIY it. In 2011, it cost anywhere between $200 and $700 to have one room painted, so doing it on your own can give you significant savings.
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