With the continued increases in housing prices and rental rates, young people realize the need to become more creative and resourceful when it comes to moving out on their own. Many young millionaires-in-the-making consider moving in with friends or their significant other to develop a sense of freedom, responsibility, and to start their journey into adulthood. However, often, young adults often don’t realize all of the things they should consider when deciding to cohabitate with others.
In this episode, I share the five keys to successfully cohabitating in a financially fit way. I explain why sometimes, living with your parents can after graduating from high school or post-secondary education can be a benefit to you as you begin to save for your future expenses and how parents can help encourage young adults to budget and save their money. I explain the importance of choosing your cohabitation partners wisely, what to consider when choosing your roommates, and how to end a cohabitation arrangement on a positive note. I also explain the importance of exercising caution when co-signing a loan for a friend or significant other as well as what to consider before moving in with a romantic partner.
“Exercise caution when being asked to co-sign for a loan or take credit out in your name.” – Tracey Bissett
This Week on Young Money:
- The importance of considering all of the costs associated with moving out of your family’s home.
- How parents can help young adults save money before moving out.
- The importance of discussing with roommates how each person plans to pay for their share of the expenses.
- Identifying whether your financial style is compatible with your roommates.
- How cash flow planning with your new roommates can help you budget your shared expenses.
- The importance of closing shared accounts at the end of a cohabitation arrangement.
- The importance of exercising caution when asked to co-sign or take credit out in your name.
- What to consider when co-signing a loan for others.
- Things to consider before getting involved in a romantic cohabitation arrangement.
5 Tips for Cohabiting in a Financially Fit Way:
- Don’t be in such a rush to move out of your parent’s home.
- Make a plan and budget for all of your expenses – both one-time and ongoing expenses.
- Choose your cohabitation partners and roommates wisely.
- Make a budget and cash flow plan for shared expenses.
- As cohabitation arrangements end, make sure all of your bills are paid and accounts are closed as needed.
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