I moved out of my parents house to live with my boyfriend with only 1800 EURs to both our names. We both had fulltime jobs but that did not prevent us from getting off to a very rocky start. We lived in a one bedroom hole in the wall with a matress on the floor to sleep on and our clothes in suitcases. I'd like to share some of the things I learnt during that time and since:
1) You will survive.
No matter how tought it gets, the love you have for each other will get you both through it. No need to lay awake at night stressing. No need to over eat and gain weight. No need to lose your hair. You will be fine if you watch your pennies and work hard.
2) Know who you will owe.
One of the biggest stresses for me was the occassional large bills which came up, that we had no idea about and had to pay in less than a month's time. I have since found out about all the taxes, health insurance policies and other miscellaneous money suckers that are part of the grown up world. I now know exactly when large chunks of our hard earned money will be due for payment. I would recomend any freshly independant adult to ensure they know exactly what bills they will have to pay, how much they might be and when they should be expected to pay them.
3) Keep an emergency fund (in other words, that fancy furniture can wait).
We always kept an emergency fund avaliable, starting off with 500 EUR. Whenever we had to dig into this fund we would then spend the next few months building it back up to our minimum of 500 EUR.
4) Keep your monthly costs as low as possible.
The less money going out each month the more you will have to save/spend.
5) No matter how little start saving.
I did not start automatic monthly saving until recently and am still kicking myself for not starting this good habit earlier. This lead us to rely on the CC more than we should have.
6) Start a pension fund ASAP
Again, I waited until the age of 25 to start my pension savings, as that was the year it becomes compulsory in my company. I realise now that you should never trust other's with your savings decisions as they do not have the same passion for your own finances that you do. And 25 is not better than 22,23 or 24 to start your savings.
7)Don't rush moving out, you'll be giving up the cheapest rent you'll ever know.
Boy do I regret giving up that cheap rent, even if I could no longer bare being under the same roof as my parents. Sometimes you just need to swallow your pride and take the cheap rent ;-)
8)Accept offers of help from friends.
We received many offers from friends to have old furniture that they no longer used. We turned most of these offers down because we were disillusioned enough to believe that we would be able to afford some beautiful, imported, solid wood furniture within 6 months. OH sweet ignorance! 2 years down the road we were still sleeping on the matress on the floor.
9) Share your costs.
Try and split your bills with as many people as possible. Can you rent with someone else? Can you share the cable? Do you go grocery shopping with your neighbour?
10) Enjoy the time.
I wish I had relaxed alot more and just enjoyed the time, rather than freaking out about keeping my job and saving to buy that 600 EUR microwave oven, which lasted us just over 3 years before it broke down when we replaced it with one that cost less than one third of the price. I prefer our new ,icrowave too because I did not have any sleepless nights over buying it.
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May 2nd, 2008 at 04:43 pm