You’ve decided: It’s time to start living on your own.
And once you’ve begun to imagine the solo life, it’s easy to start planning how you’ll set up your new place. But before you get too far along in the home decorating department, do some budgeting to make sure you can still afford to eat and pay bills after making rent each month.
Budget planning for living on your own
Many online tools can help you calculate the total cost of getting your own place. As you create your budget, you’ll need to include your rent plus several other standard expenses. Although rent is certainly not your only cost, it’s likely to be the biggest chunk of your monthly expenses.
After you estimate rent and other standard expenses, consider any one-time or recurring payments that might be different in your new location. It’s no fun to think you’re set for the month and then watch your bank account get closer and closer to zero.
Here are a few unexpected expenses you might incur when living on your own.
1. Income and sales taxes
Because each state sets its own income tax, and sales taxes vary from city to city, it’s good to know if your new address is in a higher-taxed area. Knowing the tax rates is especially important so you’re not surprised by a lower paycheck or higher prices when you make purchases.
2. Commute costs
Based on where you live and where you need to go every day, your commute costs can change if you move. If you commute by car, figure out how many miles you’ll drive and multiply by the price of a gallon of gas to see what a daily round trip will cost. If you use public transportation, learn what the price will be to go back and forth to your job or to run errands.
3. Auto insurance
Auto insurers consider where you live and how many miles you drive to help determine the price of your policy. Connect with your insurance company to see how your policy will be affected by your new address.
4. Auto registration
This annual fee is set by the state where you live, so if you move to a new state, be aware there can be a big difference in auto registration fees.
5. Health insurance
Health care insurers charge different rates in different geographic areas, and this is especially important if you’re paying for your own insurance vs. getting insurance through your employer. The difference in rates can be especially dramatic from state to state and also between rural and urban areas.
6. Cleaning expenses
If you don’t have the time or interest in being your own maid, you may decide to use a cleaning service to keep your new pad presentable. If you do decide to clean on your own, you might need to purchase a vacuum and other cleaning supplies.
7. Laundry
If your apartment doesn’t have a washer and dryer, you may need to pay to do your own laundry elsewhere or hire a laundry service. Be sure to account for this in your monthly expenses.
8. Dog walker
If you’re lucky enough to have a dog in your new apartment, but your place doesn’t have a way for Bailey or Bella to run outside when alone, you might decide to hire a dog walker. Check out what local walking services charge and add this to your budget.
By taking the time to set a budget and know what you can really afford, you can narrow your search, keep expectations realistic and have some money left over to make your new place into the home you want.
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