Essential Expenses and Prior Planning
Moving out alone presents both personal and economic uncertainties. In Mexico, 46% of young adults aged 20 to 29 still live with their parents, according to the OCDE’s 2024 Social Outlook report.
With the challenge of determining the best time to move out and ensuring sustainability in this new phase, financial planning becomes crucial.
Fabiola Muñiz, author of “Depa de Soltera: A Guide to Moving Out and Leaving Your Parents’ Home,” recommends starting the planning process several months in advance, focusing on its financial impact.
Ideally, Muñiz suggests allocating no more than 30% of your monthly income to rent. Before moving, she advises setting aside this amount for a period to assess if it causes financial strain and adjust accordingly before making the decision.
In addition to monthly rent, one should budget for initial payments such as a security deposit (usually equal to one month’s rent), legal insurance (variable cost), and potential research costs for the landlord.
Once the contract is signed and moving plans are in place, prioritize purchasing furniture and planning maintenance costs.
Basic Purchases List
When starting independent life, Muñiz recommends addressing two primary needs: sleeping and eating. Therefore, she suggests buying a mattress (starting at 3,000 pesos in department stores) and a basic refrigerator (ranging from 7,000 to 15,000 pesos, depending on store catalogs) first.
Interest-free payment plans are available for these items, but Muñiz advises against accumulating too many debts simultaneously and prioritizing only essentials.
Common Mistakes and Practical Tips
It’s crucial to consider furniture measurements for suitability in the new home and anticipate moving and shipping costs.
For food and cleaning supplies, Muñiz recommends making small purchases during the first few weeks, adjusting the budget according to actual needs. Monitoring utility bills for electricity, water, and gas is also advisable to understand average consumption and avoid surprises in the monthly budget.
This process of moving out can be challenging, but with anticipatory financial planning and a realistic assessment of expenses, young adults can embark on this journey with greater security and less stress.
Key Questions and Answers
- What are the essential expenses to consider when moving out for the first time? Essential expenses include rent, security deposit, legal insurance, and potential research costs for the landlord. Additionally, prioritize purchasing a mattress and refrigerator.
- How much of my income should I allocate to rent? Ideally, no more than 30% of your monthly income should go towards rent.
- What are some common mistakes to avoid when planning finances for independent living? Common mistakes include failing to consider furniture measurements, neglecting moving and shipping costs, and accumulating too many debts at once.
- How can I manage my budget and expenses effectively in the early stages of independent living? Make small purchases for food and cleaning supplies initially, adjust your budget according to actual needs, and monitor utility bills for electricity, water, and gas to understand average consumption.
