Adulting for Dummies: Housing, Cars, & Bills
This section will cover what might be considered the “not so fun stuff” of independent living - the things that usually fall into bills or regular costs. While they’re not so fun, they’re also responsibilities you have to deal with, and being prepared will make them less ”not-fun”. If you have to deal with them, you might as well know what you’re doing - especially since they can be major decisions, like where to live or how to keep your car functioning.
Housing
If you’re going to college and planning to live on campus, then this part is easy. For those of you not living in a college dorm (or moving off campus), finding the right place to live can seem daunting. There’s a lot to consider, from the number of people you want to live with to what to watch out for when touring a potential home. To start, if you’re trying to actually find others to live with, there are typically Facebook groups associated with the college or community relevant to you. Joining those can help you find roommates and also see what’s available in your area. Living with friends is always a great option (no possibility of stranger danger), though it’s probably a good idea to discuss your living habits before deciding to share a space with anyone. With any potential roommate, there are a number of things you should go over, like usual bedtimes and partying habits; here are some links to more.
The other decision is where to actually live. Again, there’s a lot to consider. Deciding how far you want to live from work/school (and check Google maps for how long that commute will be), how close are grocery stores/gyms/cafes, more spacious rooms or cheaper rent, and more are just a number of considerations to start with. In terms of rent, the typical rule is to find somewhere that will cost you no more than one-third of your monthly income. Sticking to this rule can be hard if you’re just a student or live in a city, but in general, browsing around to see what average prices are can help to figure out the possible range of prices (those Facebook housing groups can help with this too). There are several websites for actually looking up places to rent: here’s a couple. It’s probably a good idea to start a spreadsheet or Word doc to keep track both of everything you want in a potential home, and the list of places to consider as you search around.
Cars
To simplify this discussion, I’m going to assume you already have a car you own/lease. If you’re looking to get a car and have questions about that, I would suggest talking to a friend or family member that can start you out. For those of you with a car, the expenses you can expect to face include: car insurance (covered below), maintenance, gas, and parking. Gas is an obvious necessity, so there’s not much to say here, besides make sure you’re getting the right fuel for your car. Maintenance means taking it in for an oil change every 5,000-8,000 miles driven or so, or typically every 6 months. If you want to actually check if you need an oil change, the previous link has instructions - though you should probably search it up for your specific car model just to be sure. Skipping out on oil changes will very likely cause damage to your car eventually, leading to a way larger maintenance costs.
And then there’s parking costs - the unfortunate truth that you’ll often have to pay to leave your car somewhere. This could include wherever you’re living - so check if your potential home has parking and whether you’ll have to pay for a spot. If you’re going to college or work in a city, you’ll probably have to pay to park on campus (or by the workplace) too, and there are often monthly or yearly plans you can purchase for a needed parking permit. Overall, there are a number of costs associated with owning a car besides just gas and insurance, and you’ll want to factor these all in if you’re making a decision about whether you can afford it. It might be a good idea to search up what public transit is available in your area, and if so, how much that costs (one ride versus monthly passes) and how long it would take to commute to work/school using that. Being aware of all your options is always a good idea, and some people even choose a bicycle or skateboard as their means of transportation!
Insurance
Insurance is one of the things you think you don’t need, until something happens that makes you really wish you had it. Without getting too into the details, insurance is basically a service where you pay a fixed amount to a company every month, and in exchange, they will pay for a significant chunk of any costs caused by relevant unexpected events (accidents with car insurance, hospital trips with health insurance, etc.). While paying money every month for a service you don’t often use may seem like a bad deal, having that safety net in case you do need it is essential. The three main insurances likely relevant to a young adult are health insurance, car insurance, and renter’s insurance.
Health insurance is a must, and you are likely covered by your parents’ plan if you’re under 18. If you can’t continue on a parent’s plan, then you’ll either need to get it through: your job (talk to HR), your school (talk to a school administrator), or the public/private marketplace (potentially expensive). With health insurance, doing things like getting a physical check-up, seeing a doctor if you’re sick or injured, or going to the hospital are made (more) affordable. Health insurance plans usually provide dental and vision too, so that you can get routine checks on your eyes and teeth - also important for your health and well-being. But just like anything else, how much you pay per month usually determines how much you’ll be covered for - so make sure to compare your options and see what’s included in each plan.
Car insurance is also a must, provided (obviously) you have a car. Similar to health insurance, this is one of those things that is basically required (if you are driving) and will save you a ton of money in any emergency. Many car insurance providers offer student plans or discounts if you have a high enough GPA. There are a number of providers here too, so make sure to shop around and compare what your monthly costs would be among similar plans with different insurance providers.
If you’re renting a place, renter’s insurance is often required as well - and if it isn’t, it’s highly recommended. Renter’s insurance will cover for you in most emergency situations like a robbery or flooding or fire, though you should always make sure to read the contract. There’s not much else to say about it; you should get it, and consider it part of your monthly cost of rent.
Other Bills
Depending on if your parents take care of anything for you, there may be several other monthly expenses, AKA bills, you need to take care of. If you have a phone, then that comes with a monthly phone bill for the service. Most places you rent will charge you for utilities - a monthly charge equal to how much gas/electricity/water you used that month - though some places do cover that cost for you, so make sure to always inquire what the utility costs are anywhere you’re thinking of renting. You may have other bills too, which can come from monthly payment plans like Spotify and Netflix, or other insurance or services you choose to enroll in. The key thing here is to make sure you keep track of all these bills, so you always know: a) how much you’re expected to pay in a month, b) that you’re not being overcharged for anything, and c) that you actually pay all your bills on time. Forgetting to pay bills can result in late fees or even the service being shut off. I recommend using a budget tracker (as mentioned in the budgeting & saving section) and keeping a tab for these bills, or simply charging them to a card or bank account that you have automatic payments set-up for. The less you need to actively worry about these bills, the better for your happiness. Lastly, if you are living with other people, make sure you discuss ahead of time how bills like utilities and insurance will be split so that there are no disagreements when you’re already living together.
