The Reality of Independence
Moving out of your parents’ house is a significant milestone in anyone’s life. It means a transition from dependence to independence, from adolescence to adulthood. However, this transition is not just about gaining freedom; it’s also about assuming a multitude of responsibilities. Many teenagers dream of the day they can live on their own, imagining a life of freedom, fun, and self-determination. However, the reality of living independently is often starkly different from the dream.
Independence comes with a price, and that price is much higher than many realize. Most teenagers do not understand the importance of money or the sheer amount required to live a normal life. This lack of understanding is often because parents provide everything, creating a dream world where money is not a concern. The moment you exit this dream world and have to stand for yourself, your opinions about money and life will change dramatically.
Consider the scenario where you decide, in a fit of passion, to run away from home at the age of 16. You imagine starting a new life in your State or other State, aiming to live a normal, not extravagant, life. Your first step would be to find a place to live. You might look for a nice apartment, which could cost around $1,200. for a one-bedroom unit. But then reality hits – $1,200. a month is an impossible sum without a steady income. You might then opt for the cheapest available option, a “student” unit near a university, costing $375 a month or more. Even then, you need to put down the last month’s rent and a security deposit, not including rent application process fee, just to move in.
Next, you need power for your apartment. The power company might charge $17 to turn on the power, plus a $200 security deposit due to your lack of credit history. Your estimated power bill would run between $140 to $250 per month. Adding water would require another $110 security deposit and an estimated monthly bill of $37 to $140. If you want internet, it would cost $57 a month plus $70 for installation. A cell phone plan could range from $45 to $105, depending on your usage and the need for long-distance calls.
Moreover, you’ll need food, supplies, linens, and furniture. Furnishing your apartment with new items could cost thousands of dollars, but you might manage to find used items for about $1,000. Transporting these items could involve renting a truck for $75 a day.
If you decide to buy a car, you face further challenges. Used cars are divided into nice ones and junkers. You might afford only a junker, costing around $900, but additional costs include $125 for title transfer and license plates, $25 for inspection, $250 for new tires, and $2,300 per year for insurance, with $1,000 upfront.
The initial cost of living independently totals around $5,144, covering the first month’s expenses for an apartment and a car. However, this figure excludes car maintenance, gasoline, and other regular expenses. To afford this, you need a job. Without a high school diploma, your options are limited to low-paying jobs like fast food, earning around $15. an hour. Working 48 hours a week at two jobs might bring in about $2,800. a month, but after taxes, Medicare and other’s payroll deductions, can be short to cover your needs.
Reality check: living independently is challenging. While you might dream of a luxurious life, it requires meticulous planning and preparation. Understanding the costs and responsibilities involved is crucial before taking the plunge into independence. This book aims to guide you through the practical steps and financial literacy needed to navigate this significant life transition successfully.
Chapter 1: The True Cost of Living
Living independently requires a comprehensive understanding of the true cost of living. This chapter will break down all the expenses you need to consider, from housing and utilities to food, transportation, and beyond. By the end of this chapter, you will have a clearer picture of what it takes to sustain yourself financially.
Housing Expenses
The most significant expense you’ll face is housing. Whether you rent or buy, housing will take up a substantial portion of your budget. Renting a one-bedroom apartment can range from $1,200 to over $2,00 per month, depending on the location and amenities.
Security Deposit and First Month’s Rent: Most landlords require the first month’s rent and a security deposit (usually equal to one month’s rent) upfront. For a $1,200. apartment, that’s $3,600. just to move in.
Utilities: Basic utilities include electricity, water, gas, and trash removal. These can add up to $200 to $400 per month.
Renters Insurance: This is not mandatory but highly recommended. It protects your belongings in case of theft or damage and costs about $15 to $30 per month.
Utility Costs
Utility costs are an often-overlooked aspect of living independently. Here’s a breakdown of typical monthly utility expenses:
Electricity: $140 to $250
Water: $37 to $140
Gas: $30 to $60
Trash Removal: $10 to $20
Internet and Cable: $57 to $100
Transportation
Whether you use public transportation or own a car, transportation is another significant expense.
Public Transportation: Monthly passes range from $50 to $100, depending on the city.
Car Expenses: If you own a car, you must consider the cost of the car itself, insurance, fuel, maintenance, and repairs. Insurance for young drivers can be particularly expensive, costing upwards of $2,300 per year.
Food and Groceries
Food is a non-negotiable expense. Budgeting for groceries involves planning and smart shopping.
Groceries: Expect to spend around $200 to $400 per month on groceries.
Dining Out: Eating out is more expensive. Even occasional dining can add $50 to $100 per month to your budget.
Personal Care and Household Supplies
Items like toiletries, cleaning supplies, and personal care products add to your monthly expenses.
Personal Care: $20 to $50 per month
Household Supplies: $30 to $50 per month
Entertainment and Social Life
Living independently doesn’t mean you can’t have fun, but entertainment and social activities need to fit into your budget.
Entertainment: Movie tickets, streaming services, and other leisure activities can add $50 to $100 per month.
Social Activities: Going out with friends, hobbies, and other social activities can add another $50 to $100 per month.
Miscellaneous Expenses
Unexpected expenses will arise, and it’s crucial to have a buffer.
Emergency Fund: Aim to save at least $500 to $1,000 for emergencies.
Miscellaneous: Budget an additional $50 to $100 for unexpected expenses.
Total Monthly Budget
Summing up all these expenses gives you a clearer picture of the true cost of living independently. A conservative estimate for a single person might look like this:
Housing: $1,200 “for a small apartment”
Utilities: $250
Transportation: $200
Food and Groceries: $300
Personal Care and Household Supplies: $70
Entertainment and Social Life: $150
Miscellaneous and Emergency Fund Contribution: $100
Total Monthly Expenses: $2,270.
This budget doesn’t include health insurance, student loans, or other personal debt, which can significantly impact your finances.
There are numerous advantages to flying solo. Living alone often means taking on more responsibilities, such as financial obligations, chores, and decision-making. While it may seem daunting, it also brings an increased sense of confidence and self-reliance.
In conclusion, living independently is a substantial financial commitment. Understanding the true cost of living is the first step in preparing for this major life change. This chapter has provided a detailed breakdown of essential expenses, helping you to plan and budget effectively for your future independence. The following chapters will delve deeper into each of these categories, providing practical advice and strategies to manage your finances wisely.
By: Dr. Maria Pinto Barbosa #DrBarbosa WhatsApp (386)206-6325
Certified as School Board of Education / PHD-Doctor of Philosophy in Cristian Clinical Counseling
ACCEL-Holistic Therapy: Get-Up-and GO / Founder-Director of ACCEL Educational Leadership
Specialized on Temperaments – Personalities
Pastor Christian Minister Clergy / Bachelor of Theology in Pastoral leadership and Certified EETAD Theology
