How Much Does Living on Your Own Cost?

Cost is a major factor in deciding on moving out to live on your own and when to do it.

Coming from a background of living with your parents who take care of every household related bill, the thought of moving out to start a new journey on your own can be overwhelming.

The good news is that if you plan ahead and save money for living on your own than your transition will be well informed and stress free.

The major aspect that should frame your planning is: How much does living on your own cost?

Living On Your Own Can Be Expensive

Living on your own can be expensive, but it doesn’t mean that you can skip your existing debts. Student loans, auto loans, credit card debt, and countless other types of bills need to be paid.

You’ll have to take these into account when creating your new budget.

Considering how much you currently owe will help you decide how much to pay for rent or whether you need to find alternative living arrangements.

Price Of Rent

Rent is one of the pain points of living on your own. According to a Realtor.com  report cited in an article on CNN,  the average rent was $1 827 per month in April 2022. The price tag was a notch up by about 16.7% from the previous year’s figure. The report paints an expected upward trajectory for rental increases.

Getting a roommate will allow you to reduce the price of rent for yourself.

One great way to share living expenses is by sharing utilities, including cable television, internet, and phone.

One roommate can share the monthly cable bill, while two can split it three ways.

You should also weigh the location of the new home. If you’re moving for work, you might be able to find a new place near your office, but this may require giving up a car expense.

If you’re looking for a lower price, you could find roommates through community Facebook groups, as well as online sites such as Craigslist and the Internet.

Cost Of Utilities

The first step to determining the cost of utilities when living on your own is to find out exactly what utilities are included in your rent.

You can ask the landlord or other tenants about their bills to get a baseline for what you should expect each month.

Pay Attention to the Utility Bills

It may also help to find online utilities calculators, which can be useful in estimating monthly bills.

However, make sure to ask your landlord or apartment manager for details before you sign anything.

Utility bills vary greatly from state to state, region, and county to region. This is due to a combination of factors including geography, demand, and climate.

There are ways to minimize energy and water usage and save money in the long run. It is also a good idea to compare the different utility rate plans, which can be a great help in preserving resources. Listed below are some tips to help you determine how much your utility bills will cost.

Apartment utility bills vary widely from city to city, but in general, budget for around $200 to $300 per month.

The exact amount you need to budget will depend on the size of your apartment, as well as the number of roommates you have.

For a single person in a studio apartment, the cost will be lower. Likewise, if you have a roommate, you should be frugal with your roommate’s utility bills.

Basic utility bills include gas, water, and electricity. Cable and internet costs will vary by the number of roommates.

If you are living alone, your basic utility bill will likely range between $100 and $200 per month.

Using cable and internet services for Internet access and for video games can cost as much as $150 a month.

However, if you’re smart about who you live with, you can get them for less than $150 per person.

The Cost of Electricity

Electricity bills vary between $40 and $200, and can be higher or lower depending on the size of your apartment.

You can reduce your electric bill by using energy-efficient devices, but there are also sneaky utility costs that can add up.

During the summer, electricity is usually lower, while heating during the winter may increase your bill by another $50-100.

It’s important to understand these hidden costs, and make sure you have enough money to cover all of them.

Cost of Food

Food budgets for college students don’t have to be large, but they should be managed in order to stay on budget.

The average monthly food budget for a thrifty college student is $180. The first thing to do is to plan your meals in advance.

By planning ahead of time, you’ll save yourself the headache of making a meal plan.

Buying a variety of food items can reduce the temptation to order in.

The average cost of food for an American household increased by about 1% from May to June, to $8,059 for a family of four.

This increase is the largest since February 1981.

Food costs can be a major obstacle for people who live on a tight budget.

Many individuals choose to go on a stricter diet than their parents or families. However, even with a strict diet, it can be difficult to afford food.

The first step in establishing a food budget is knowing your current food costs.

Take note of your regular spending and tally all the grocery store and restaurant bills.

Make a list of Every Ounce of Food You Consume.

You may be surprised to learn that lard contains more calories than any other food! Fortunately, there are other ways to cut costs.

Listed below are some tips to manage the cost of food when living on your own.

• Keep track of the cost of your food items
• Sop around. The same item could be 5% cheaper in another shop
• Watch out for special and make use of the loyalty and discounts programs and cards
• Consider joining a group purchasing club or organisation
• Implement the first in and first out method to ensure you utilise the oldest food items in you food storage and avoid possible wastage coming from expired foods

How To Manage Expenses When Living On Your Own

Managing your finances is one of the most important things you’ll ever do as an adult. But if you’re single, there are some extra challenges involved. Read this article to learn more about managing your finances when you live alone.

Living on your own means that you need to take care of yourself financially. This includes paying for rent, utilities, groceries, and other bills. It also means that you need to save money for emergencies and retirement.

Create A Budget

You should start by creating a budget. This will help you understand how much money you spend each month and where it goes. Once you’ve figured out what you spend money on, you can decide whether you want to cut back on certain expenses or find ways to earn more money.

Set Goals For Each Month

If you want to manage your finances well, you need to set goals for yourself. It’s easy to fall into bad habits if you aren’t setting any goals for yourself. So make sure you set realistic goals for yourself every month.

Pay Off Debt As Soon As Possible

Once you’ve paid off your debt, you’ll feel so much better! You won’t have to worry about interest rates, late fees, or other penalties. And you’ll also be able to save money by not having to pay monthly bills.

Save Money By Cutting Back On Extras

If you’re living alone, you might find yourself spending more than you’d like. That’s because you don’t have anyone else to share expenses with. So, you need to make sure you’re saving money wherever possible. One of the easiest ways to cut back on expenses is to stop buying unnecessary extras.

Find Ways To Earn Extra Cash

You can also earn extra cash by selling items online. Sites like eBay and Amazon allow you to sell your old stuff for cash. Or, you can sell your services. Sites like Fiverr let people pay you to perform certain tasks.

Final Thoughts

There you go. Living on your own is possible. Just be realistic about what it takes, the level of responsibility, the once off costs involved and the ongoing monthly expenses that come with it. Ensure your monthly income is comfortably higher than your monthly expenses.

Also consider a lifestyle that enables you to leave a good part of your earnings for investment and other financial goals. If your lifestyle enables you to implement the 50/30/20 budgeting doctrine than you are set.

This way, 50% of you income goes into your needs, 30% goes into your wants and the other 20% goes into investments or other financial goals.

This way you are not only settled for the here and now, you are settled for the future. Wishing you all the best.