Questions Every College Student Should Ask Themselves Before Leaving the “Nest” - Part 1
“Remember also your Creator in the days of your youth, before the evil days come and the years draw near of which you will say, ‘I have no pleasure in them’” (Ecclesiastes 12:1).
Q: Do I have enough saved up to cover my worst-case scenario?
A: Do a little pre-planning. Think about your personal worst-case financial scenario, whether it is losing your current job, being forced to cut your hours or needing to urgently purchase a plane ticket across the country to visit a parent. Be sure to have enough “back-up” money in your savings account to cover that emergency. Knowing your personal worst-case financial situation and thinking ahead about how you will react can ultimately save a headache, or even financial debt, down the road.
Q: Do I even know how much this will cost?
A: Do your homework before deciding to leave the nest. Consider using a budgeting tool to track what you are spending now so you’ll know how much money you have to spend on rent, food, and utilities once you move out. Don’t forget to ask around, too. Your parents and others in your life should answer cost questions honestly, so you can grasp what it takes to live on your own.
Q: Am I ready to discipline my habits and myself?
A: Put together a simple financial plan (budget). There are great FREE online apps, such as Mvelopes.com, to make this process easy and fun. Mobile friendly apps with frequent reminders and warnings will help you stay on top of every penny spent or over-spent! Having a written plan is just the beginning. In order for the plan to work you need to measure the plan against the real results. Check your online budget every day in order to make sure that the budget categories and the funds available in the bank account are aligned.
Today's tip brought to you by Mvelopes and Money4Life Coaching.