How to be prepared for everything when moving out and entering the real world?

[jamestl2]

With my senior year of college coming close to an end next Summer, there's some things I'm going to need to know. And I feel I'm not completely prepared for the real world, what I'm going to do etc.

I know this list doesn't include everything, just all the financial expenses off the top of my head:

• Rent (or mortgage)
• Gas & Electric Bills
• Food
• College Loans
• Internet Connection
• Auto Insurance
• Health Insurance

Going through a list like this makes me feel like I won't be able to afford anything, or even be capable of making it on my own . And I don't want to be stuck at home forever.

Finding someway to pay for everything sounds difficult. For example, like I won't find a job, no relative support, go into huge amounts of debt. I have some money saved up (around $6K or so), but I know it won't last for long.

Not to mention the other factors besides just personal finance, like psychological effects, such as detachment from leaving home away from family, and not having their financial backings when the time comes.

I'm just feeling trapped and I fear I won't have anywhere to go.

[chopsaw]

James

You'll struggle, and it will probably be one of the most trying times in your life, but it will also be the most rewarding. Very few people have a plan, they just go. I remember those days, and man, what a great time I had. Enjoy them.

[Technicolor Tim]

Play it by ear. Should work out. That's what I did, and I ended up dead broke and homeless. Now I have a story to tell and something to look back on, and since I'm no longer homeless but actually doing ok I'm also qualified to be a motivational speaker.

Seriously, though, if you don't want to end up like I did keep a check on your spending. Keyword: Savings. Save, save, save and always have some money just in case. I know a lot of 'LoA' fans will tell you that doing so will give you a 'lack-consciousness,' but out here in the real world that strategy has actually worked very well for a lot of people.

Also, getting a job on the side is not a bad idea when you 'enter the real world.' Make a little extra money to set aside for anything that can come up. Wanna know what happens then? You get this relaxed and warm fuzzy feeling in your stomach that people with money worries never have. And THAT is worth a lot. Even in terms of attaining a good 'money consciousness.' Trust me.

[Erin Pavlina]

Here is my advice.

Rent will probably be your biggest expense so perhaps you can share a 2 bedroom apt with a roomate, thus cutting some of that expense. You can then share the utility bills which will be cheaper than living on your own.

never put items on a credit card unless you plan to pay them off in full at the end of the month. If you can't pay them off, don't buy them.

Learn to eat cheaply. I used to get by on $20 per week for groceries just for myself.

What did you major in? You should be able to get a decent job with a college degree, probably starting at at least $30k or more. Work on getting that job as soon as it's feasible. See if your college can help you with some job placement or attend a school sponsored job fair.

Figure out what your expenses will be and what your income will be and then try to live on 90% of your income while you save the rest for a rainy day or an emergency or a big project.

Try not to worry, but get yourself into a tenable situation so you can easily pay your bills with the job you have.

[Dan.Linehan]

Erin's advice is really good.


Things I would add:

• Get the job before you move. Once you make sure you like the job, rent an apartment right next to it. Within walking distance if possible. This is a huge advantage. Gas, car, time and stress-wise.
  
  
• Call off as infrequently as possible. When I managed a call center it amazed me how many people got fired (or skipped over for promotion) for calling off.
  
  
• Don't tell off your bosses. (I've learned this one the hard way.)
  
  
• Learn to stand up for yourself without coming off as upset. Do it in a joking, upbeat, deflective manner if at all possible. A sense of inner peace is really helpful here. (Learned this the hard way too.)
  
  
• Always see things as being in the companies / customers best interest. Represent them, not yourself. The more you leave your ego behind the better.
  
  
• Your rent or mortgage should never be more than 1/3 of your income.
  
  
• You're right about bills, they are rough. I know people who have spend their whole lives trying to keep up with bills. That's no way to live. Better to live simply than be stressed out over paying bills. Nobody is forcing you to get digital cable.

[jamestl2]

It's good to know that some can get by well without too much overanalyzing .

I'm not sure about the "moving in with a room mate" idea. I've never really known many people to begin with, and even the ones that I did, we never talked about "needing a place" or anything like that. It just never came up, not that I have close friends who need a place to stay. (I more introverted,

Originally Posted by Erin Pavlina

What did you major in?

My major is information resources, and I already do all the website, forum, design work, etc. in my spare time anyway (in addition to the college work; actually I feel the courses are a bit beneath me, but they're required in the degree program.)

Originally Posted by Erin Pavlina

never put items on a credit card unless you plan to pay them off in full at the end of the month.

Actually, I don't even own a credit car right now (well, not technically, it's just not in my name), maybe it's something I should look into, for when emergencies may happen.

Originally Posted by Dan.Linehan

Get the job before you move. Once you make sure you like the job, rent an apartment right next to it. Within walking distance if possible. This is a huge advantage. Gas, car, time and stress-wise.

Hmmm, are you thinking about just a basic getting-on-my-two-feet type of job, or an actual full-fledged career choice?

I already have a car too, and am making payments on it. It's been that way for a few years (my college ones, basically). And I agree about the distance, the question "Do I move out before or after I get the job?" was in the back of my mind too.

Originally Posted by Dan.Linehan

Call off as infrequently as possible. When I managed a call center it amazed me how many people got fired (or skipped over for promotion) for calling off.

Sorry, not quite sure what "calling off" is. Is it something like calling in sick, or taking time off work?

Originally Posted by Technicolor Tim

Keyword: Savings. Save, save, save and always have some money just in case.

Luckily, other than the necessities, I have like ZERO expenses. I rarely go out, I don't have many wants (CD's, the TV, games, etc., maybe one a year or so, if that), so I feel secure and comfortable in the Saving-Money zone. Now it's just a matter of "getting the money" .

And I never really "fancied luxuries" too much like eating out, going on trips, etc. so no worries there either.


Overall, I do feel I can handle the stresses of "being on my own", "taking care of myself", "being respectful towards neighbors, roommates, and others", etc. It's just the finances that worry me the most. And finding the right way to earn income, and where that'll be.

[sbdiane]

Live very frugally and save as much as you possibly can. And always put the maximum you can into the 401K plan because your company will likely provide a matching amount and you'll never miss that money. It will grow faster than you can imagine.

One way to figure out your expenses is to walk around with a little notebook and write every single thing down. Then it's not guess-work.

Don't forget to add the cost of using the automobile. There's gas, maintenance and repair as well as insurance.

[Apollia]

I highly recommend staying at home, if that's an option. It should probably save you a lot of money. (Unless your family suddenly decides to charge you a lot of money for rent).

Having to slave to pay bills is terribly stressful (at least for me), and stress, along with having to waste a ton of your time at a pointless job, just makes it harder to figure out a way to get off the treadmill.

You're not even on the living-from-paycheck-to-paycheck treadmill to begin with, so, I think it would be a good idea to stay off of it.

You can still get a job if you're living at home - with the advantage that you'll be able to keep a lot more of your earnings, instead of having to throw them away on rent and bills.

And if you end up with a nasty boss or coworkers, it won't be a serious problem, because if you're unhappy, you'll be able to quit at any time because you won't _need_ the job. In fact, if you're extremely good at your job, they might need you more than you need them, in which case you might be able to negotiate better pay.

Building up a colossal amount of savings should make it much easier for you when the day finally comes that you will have to support yourself.

Originally Posted by jamestl2

Luckily, other than the necessities, I have like ZERO expenses. I rarely go out, I don't have many wants (CD's, the TV, games, etc., maybe one a year or so, if that), so I feel secure and comfortable in the Saving-Money zone. Now it's just a matter of "getting the money" .

Enviable. That's the way my situation would be, if it hadn't been ruined by credit card debt and fees. I might have a nice little nest egg of thousands of dollars myself by now if I hadn't naively fallen into the credit card trap.

Speaking of savings, if you're in the U.S., it might be a good idea to do some things to try to protect your savings from the inflation of the U.S. dollar. Maybe invest it in gold or convert it to Euros, or something.

There are many other threads on this board which talk a lot about inflation. Here's one: Protection from a falling dollar

Originally Posted by Erin Pavlina

You should be able to get a decent job with a college degree, probably starting at at least $30k or more. Work on getting that job as soon as it's feasible. See if your college can help you with some job placement or attend a school sponsored job fair.

Originally Posted by Dan.Linehan

• Get the job before you move. Once you make sure you like the job, rent an apartment right next to it. Within walking distance if possible. This is a huge advantage. Gas, car, time and stress-wise.

What! Don't you two agree with Steve's 10 Reasons You Should Never Get a Job article?

Best wishes,
Apollia

[Apollia]

Originally Posted by Apollia

What! Don't you two agree with Steve's 10 Reasons You Should Never Get a Job article?

Er, sorry if I was a bit blunt. I just was astonished that two people in Steve's inner circle seemingly didn't agree more with Steve on that, so, I just blurted the above.

I do think what you two said was excellent advice for anyone looking to get and keep a job.

I just felt it might be good for someone to raise the question of whether moving out and getting a job is the best approach, particularly for someone who is currently in an ideal, stress-free position to figure out how to generate income without a job.

Anyhow, thanks for the opportunity to build my courage, I'm sometimes pretty wimpy about speaking my mind, especially an opinion which differs from the majority...

Best wishes,
Apollia

[Erin Pavlina]

He can work for himself when he has some savings and a business idea. Without those two things, he still has to earn an income somewhere.

[Apollia]

Very true.

Getting a job definitely has some advantages over mooching or appearing to mooch. I just thought I'd give "mooching" a little more credit than it usually gets.

Especially since living with family, which is often considered mooching in America, is considered simple practicality in other cultures, such as Italy: Evan Handler: Brother, Can You Spare One-Point-Seven Million, at 6.25%?

Best wishes,
Apollia

[coollikeme]

to make your money work for you. A job is not the answer, its the problem. How can you make your money work for you, is the key.

[jamestl2]

Originally Posted by Apollia

I highly recommend staying at home, if that's an option. It should probably save you a lot of money. (Unless your family suddenly decides to charge you a lot of money for rent).

I wanted to stay home, but my Dad stated that rent is pretty much a guarantee once I graduate.

Originally Posted by Apollia

Having to slave to pay bills is terribly stressful (at least for me), and stress, along with having to waste a ton of your time at a pointless job, just makes it harder to figure out a way to get off the treadmill.

Don't get me wrong, I wouldv'e liked to run my own business as much as the next PDer (and it's what I've been somewhat attempting to do the past year an a half with my websites), but I have to look at it realistically.

While I've admitted before that money was NOT their primary focus (value, humor, etc. were) I haven't really focused on "monetizing" them. I've only made around $110 (off adsense).

Originally Posted by Apollia

You're not even on the living-from-paycheck-to-paycheck treadmill to begin with, so, I think it would be a good idea to stay off of it.

I'm just afraid that this will be the path I'll forced to take in the near future. I just don't see any other choices, given the limited financial possibilities I have.

[Apollia]

Originally Posted by jamestl2

I wanted to stay home, but my Dad stated that rent is pretty much a guarantee once I graduate.

Oh, well. But, depending on how much the rent will be, it still might be a good bargain. Plus, hopefully your dad would be more flexible and easier to negotiate with than a landlord who is a complete stranger.

Don't get me wrong, I wouldv'e liked to run my own business as much as the next PDer (and it's what I've been somewhat attempting to do the past year an a half with my websites), but I have to look at it realistically.

While I've admitted before that money was NOT their primary focus (value, humor, etc. were) I haven't really focused on "monetizing" them. I've only made around $110 (off adsense).

Well, you've already done better than me. (Except if I count my eBay days - I guess I made around $400 in 8 months of eBay selling back in 2002).

I'm just afraid that this will be the path I'll forced to take in the near future. I just don't see any other choices, given the limited financial possibilities I have.

I know that feeling. I hope others who have had more success than I have will post some ideas.

I've posted some ideas in the past to other threads. I guess I'll just post a link instead of repeating myself. Online Income Compilation

I don't think I've posted any ideas which are more innovative elsewhere (unless I'm misrecalling).

I hope things work out.

Best wishes,
Apollia

[Call me Boges]

I would use your money to go traveling a bit. Nothing hurts more then using savings on things like rent and gas when you could use the dough for some unforgettable experiences.

Also, learn to cut costs in your life.

Shop around and modify your cellphone plan to get the best and most out of it.

Forego home internet and hang out at the local cafe's, I see guys setting up little offices at these places all the time. Plus potential for female interaction is high.

Try not to drive as often or dont drive at all if you can help it.

DONT eat out. This was one of the biggest drains on my finances. I added up what I spent and I was ashamed and astonished at my eating out habits.

Its all about budgeting your needs and wants and getting the best deals you can without frivolously spending your dough.

Living on your own is no joke, if you cant afford to do it comfortably its not worth it. Struggling to survive is not fun.

[Orange]

you seem to be limniting yourslef to much by thinking thats your only option and way. You could do anything, dont look for a specific situation just look to be happy and see what happens. The best things are probly somthing you cant think of now it could be anything you get invited to travle the world you get into a business that you really like that has its own accomodation you fall in love with a rich old woman try and be open to somthing more broad.
Other than that I think getting things sorted before you move out and when you feel readdy then move out is the best thing. Unless your being fourced to move out or you actuly think you would enjoy it or it would be better for you then stay where you are

[jamestl2]

@Apollia = Thanks for the Ideas so far.

My Dad may be more flexible than a stranger, but it's the principle of the matter that concerns me too. That my own immediate family is charging me to stay at home. And my Dad has said before to me that he won't really negotiate on the matter.

@Call me Boges = Pretty much everything you've listed there I already do, so it's not too much of a concern for my situation. (Well except the internet thing, I'm pretty much on it every day, so it's nice to have it at home.)

@Orange = What other options can I look at realistically though? Pretty much everything in my OP list is a must (Plus other fees I may be missing /unaware of).

It's not really a matter of "enjoyment" or not, it's pretty much what's going to happen to me next summer. And at the point I'm at right now, I don't think I would survive on my own if I were immediately thrust into the RW (hypothetically).