Updated: Jun 6
So you do not end up moving back home with your parents.
Since I moved out at 17, I have never moved back home. I have always wanted to live my life by my own rules. Therefore, living under my mother’s roof was no longer an option. I needed to get my bills sorted. Now I am sharing my secrets with you.
First, you must know how much money you are bringing in. Some people might think that they do not make enough money, but they are just living above their financial means. Below, you will find a simple way to figure out how much money you are making.
How much do you make after taxes?
o (paycheck amount x 52 weeks) if you get paid weekly
o (paycheck amount x 26 weeks) if you get paid biweekly
What is the amount that you are spending on the following?
o Housing (Gas, Electricity, Insurance, Heat, Maintenance)
o Transportation (Gas, Electricity, Insurance, Maintenance)
o Food/Life (Daycare, Hobbies, Food, Clothing & Gifts, Entertainment)
o Debts repayment
o Others bills
What you have left is how much you make.
If it is a negative number, you do not make enough money to live the lifestyle that you are currently living in. Therefore, your only solution would be to cut back or make more money. Also, if moving in with mom and dad is out of the question, then here are a few other options. You might want to consider moving, getting a roommate, finding a higher paying, or a second job part-time job. Whatever choice you make, it will be your decision in the end.
If it is a positive number, then you are doing great financially. You can start saving for those bigger goals like having a dream wedding, traveling the world, buy a house, or purchasing that Chanel Bag. The world is your oyster, enjoy.