Thread: Advice from 18+
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Old 09-06-2007, 03:08 PM   #10 (permalink)
{aspiring_to_clarity}
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Join Date: Dec 2006
Location: Texas, USA
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Hey, Dennis. My biggest piece of advice would be to try to cut down the need to travel as much as possible. By this I mean, try to work and live in the same area. It also helps if there is a grocer and maybe a laundry nearby. This way you can avoid having to get a car and pay for insurance, registration, gas and maintenance. Walking, biking or public trasportation will certainly save you a great deal and leave you with more money for all of the other necessities.

Rent
Utilities (cable, internet, phone, electricity, water, etc.) Some of these are not necessary. Start with the basics and add the luxuries once you've lived on your own for a couple of months if you can afford it.
Transportation
Groceries/Household Items


A good way to budget is the 60% solution where you keep your monthly expenses to 60% of your gross (the monthly expenses include taxes and all the things above...any expense that you have every month). The other 40% gets divided into the following categories: 10% retirement (it's never too early), 10% short term savings (for a vacation or new furniture also emergency fund), 10% long term savings (car, house downpayment) and 10%for entertainment/fun. If you follow this ratio and do not add anything to your monthly expenses that puts you over 60%, you will always have enough and will be saving too. Then, those little irregular expenses or emergencies won't blow your budget.

Learn to cook
Learn to do laundry
Get a library card (you can check out books, movies and cds for free as well as use the internet)
Familiarize yourself with public transportation

Take this time to learn what you need to and plan. Start looking at prices to rent apartments/houses or even rooms. Look at getting one or two roommates to share the costs (make sure you have discussed what everyone will be responsible for so that everyone knows where they stand...this will lessen disagreements).

Good luck!
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