As you grow up and become an adult, you begin to need your own space to have greater independence, to set your own rules and achieve personal goals. However, sometimes the opposite occurs. According to the INEGI, in 2015, 32% of young people between 18 and 34 years old still lived in the house of their parents or relatives and only 18% had decided to become independent.
The Condusef reported that 5 out of 10 young people continue to live with their parents, because they enjoy a roof, food and receive partial or total funding for their studies. This tells us that many young people feel more comfortable living with their parents.
However, it is also true that current economic conditions are unfavorable for young people. According to a study by Dada Room , the platform for sharing a department in Latin America, the salaries received by recent graduates range from $ 5,000 to $ 10,000. While the rent of a room in Mexico City can cost $ 3,800 and the rent of a department for a person costs around $ 5,200.
As a result, young people will allocate an average of 47% of their monthly income to rent an apartment, says Dada Room. This percentage exceeds what is recommended by specialists, which is 30%.
With this panorama, we can find several reasons to continue living with the parents, but we know that becoming independent must be carried out sooner or later. For this, in Finerio we share 4 steps that will help you start a new stage of life.
If you are already convinced to leave the nest, before hurrying and start looking for a place to live, ask yourself: when am I going to change houses? How much money do I have or how much do I need to achieve it?
The Condusef recommends putting a saving period of 3 to 5 years. This seems crazy, but it depends on each case. For example, if you set a monthly savings for 5 years, you can even reach for the down payment of a house. So, the idea does not seem so outlandish anymore, right?
The more time you have to plan, save and invest, the more successful the transition will be.
2. Create a budget
To be independent means to assume different expenses such as: food, services, rent, deposits, taxes, among others. To keep track of any expenses that may surprise you later, make a budget.
A good reference to prepare your budget is the 50/20/30 rule, which allows you to make a balanced spending plan, including a savings fund.
The rule is about using 50% of your income for essential expenses such as: water, food, gas, electricity, transportation and essential items. You must allocate 20% to your savings and debt payment plans. 30% is for personal expenses that improve your lifestyle. In this last category are considered expenses such as cell phone plan, subscriptions such as Netflix or outings with your friends.
On the other hand, you should consider that, when moving, you will need furniture, kitchen utensils, refrigerator, washing machine, among others; what you will also have to add to your list of possible expenses.
Your budget can be arranged in the way that suits you, but the most important thing is to put it into practice and stick to it. Start helping your parents with the payment of services and the pantry that covers your needs, so you have an idea of how much things cost and you get used to making those payments.
To keep track of your money, you can rely on Finerio, the first application in Mexico that allows you to link your bank accounts and register your purchases in cash, to have all the information of your expenses in one place. Also, the app allows you to create budgets, which automatically tracks and shows you, through graphics, how you are spending your money. It’s totally free and available for Android or iOS.
3. Save and invest
Once you have your budget, start saving the amount you will allocate to future payments such as: the payment of the deposit, the rent and the basic needs that you will require in your home.
Also, it is a good time to eliminate all those unnecessary or avoidable expenses, that is, fast food, coffee outside the home, sweets, chips, bottled water or payment of commissions. These small amounts that disburse little by little are adding up a large amount of money, but they can be a great savings opportunity.
When you have collected some money, invest it to generate returns. Some investment options that require little capital and offer attractive returns are, for example, Cetes or Fintechs such as Doopla or Kubo Financiero.
4. Look for new sources of income
To move, it is essential to have a job that allows you to cover the expenses of your independent life. If you need to increase your income, look for other ways to get money such as working as a freelancer on weekends or selling items that you no longer need.
In this way, you will have a higher income and, therefore, better economic conditions to start this new stage of your life.
So, get to work, if you want to stop living with your parents, start your new lifestyle as soon as possible. Define the time you want to become independent. Make a budget of everything you’ll need. Support your parents or save on the cost of food and services. Collect the money for the deposit and the rent. Grow your money through investments. Look for additional sources of income. No doubt it is a difficult process, but not impossible if you propose.