Living Away From Home

Some young adults go away to college, while others stay with their parents until after graduating. Either way, we all find ourselves in the intimidating position of first time independence. You begin to notice many things you may have taken for granted while living with your folks. Abbey Credit Union wants to be sure you are prepared for the trials ahead.

Here are 10 tips to help you follow the right financial path:

1. Stay Organized: Keep a binder or box with dividers for your important papers (bills, receipts, lease agreements, instruction manuals, and other important documents). Having everything in one place will really take a burden off your mind. Also, take full advantage of a daily planner. Fill in important days such as due dates (homework, bills, etc.), meetings, and appointments.

2. Cut Coupons: If you don’t get the paper, there are now coupons you can download off the internet. The fifty cents here and $1 there can add up, making room in your budget for more food and other essentials! Take the time, it’s definitely worth it.

3. Bargain Shop: Browse store advertisements. Make a rule for yourself to never buy anything that is not on sale or clearance. It might feel good to be able to afford name brand items, but most of the time the generic version is the exact same product. If you have the time to sort through, most thrift shops carry products that just didn’t sell at the retail store.

4. Pay Bills on Time: School work, new job. Time can definitely slip away from you and before you know it, you realize a bill was past due. You had the money in the bank, you just forgot to send the check or pay online. Late bills result in ugly late fees, money you could have spent on something more tangible, like food or clothing.

5. Don’t Crank the Heat: As a child you may have never understood why, when you asked your mom to turn up the heat, she told you to put on a sweater. Now that you’re paying an electric and/or gas bill, you’ll grow fond of sweaters and blankets. It takes a lot less energy (and money) to warm a person than it does an entire house or apartment. Sixty-eight degrees is a good temperature at which to stay.

6. Be Your Own Chef: Grabbing fast food en route between classes, work, and home may seem more convenient in the short of things, but it can really weigh down your budget. Try cooking large dishes that will last a few days. On ‘leftover’ days, you will just have to warm food up in the microwave. Cooking with the oven in the wintertime will also help keep the place warm. Just be sure to turn it off when you are finished!

7. Hold off on the Luxuries: With the ever-growing technology world, there are many gadgets and services the market makes you feel like you have to have. Most of the time you don’t. It is convenient to be able to record your favorite show if you’re busy that night, but maybe that extra $50 a month would fit better in your gas tank.

8. Pay Yourself First: Set up a payment plan to yourself. Even if your budget is a little tight, you can stow away a set amount of your income (say, 2%) in a savings account that will grow with interest. For example, if you make $500 a week, you would be depositing a mere ten dollars into your savings. After a year, that $10 turns into $520 plus interest!

9. Borrow Only What You Need: Building credit (link to Credit Builder page of Young Adult site) is a big part of growing up and living on your own. Someday you will be able to afford to buy your own house and will want the lowest possible interest rate. Do not take out a loan (school, car, etc.) for more than what you will be able to afford to pay back. The large number some school loans have to offer can be tempting, but keep in mind that you have to pay it all back one day, with interest. Only use a credit card when it is most reasonable and you know you’ll be able to pay the balance off in a month or two.

10. Sell What You’re Not Using: Bookshelf taking up space? Haven’t worn that top in over a year? Consignment shops and second hand stores will be happy to take them off your hands, and pay you for it! While you’re there, browse around for things that you might need. There are also a lot of online networks where your trash could be someone else’s treasure and vice versa.