How to Become Financially Independent from Your Parents

If you’re like many 20-somethings, you either still live at home with your parents or they’re helping you pay your bills. Don’t despair. According to a study by Pew Research, 45% of young adults ages 18 to 29 say they’ve received a lot or some financial help from their parents in the past 12 months.

Chances are, you’re hoping to become financially independent as soon as possible. We have a few tips to help get you there faster.

  • Paying for College
    The average student loan debt per student is $32, 731. If you’re battling or facing student loan debt, there are a few things you can do. First, think about attending a community or state college so your tuition, and hence your debt, will be lower. If you’re already in college, now is the time to put a plan together on how much you’ll owe when you graduate and what your monthly payments will be. This will give you an idea of what kind of income you’ll need to make to pay off your student loans.
  • Work on Your Credit
    Don’t have a credit card yet? Then, you probably haven’t built any credit yet either. It’s time to get a low-balance credit card to get started. Only charge what you can pay off each month. You may need to be an authorized user on a parent’s card or get a secured credit card to get started. The important part is to get started building your credit and good spending habits now. WWFCU has low-rate and secured credit cards – learn more!
  • Get Out of the House
    As much as your parents love you, it’s probably time you start thinking about getting your own place. Start saving for down payments and rent while your costs are low at home. You may also want to start finding a roommate to help keep expenses at a minimum. Already paying rent to your parents? You could probably talk them into letting you save that money towards renting a place instead.
  • Cut Back Your Expenses
    From getting a prepaid cell phone service to learning to cook instead of eating out, there are many small steps you can take now toward becoming more financially independent. Start shopping at resale stores and making your own coffee too, every little bit will help you make ends meet when you’re on your own.
  • Save More, Spend Less
    Get into the savings habit now. In addition to what you’re saving to get out of your parents’ house or let go of those purse strings, you need to get into a good savings habit as soon as you can. Putting 10% away is a great place to start. Make it automatic with direct deposit if possible and save it in an account that’s not easy for you access. Keep track of what your expenses are or what they will be when you’re own your own and put together a budget so you know what you need to get by. Check out WWFCU’s savings accounts here.

Have questions? Speak to a WWFCU Member Service Representative today at (734) 721-5700 or stop by our branch.

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Moving Towards Your Financial Success!
Member Service: (734) 721-5700