When a person is living alone, they tend to spend a lot on utility bills, insurance, internet/cable/phone bills, transportation, rent, food, and clothing. Consider a young adult that has just finished school and is starting to live alone.
Usually, such young adults don’t have many responsibilities, at least, not like they would if they had a spouse or children. As a result, the expenses are minimal compared to a family that might start at three people or more. It means that even housing expenses are minimal since even a single room apartment will suffice.
Consequently, a person living alone spends most of their expenses on the necessities. That means this person is not a big spender. It is a crucial time because it teaches one the principles of saving. If handled properly, it shapes one’s financial future by building saving muscles and can mean the difference between an extravagant spender and a disciplined spender.
Even a person that stays alone will have monthly rent to pay. The only difference is that it will be a smaller apartment. Even a single room is enough for a single person. Usually, since they have just started earning and don’t necessarily have much, they will live in a condo or apartment. These, in most cases, are generally cheaper and more affordable.
These expenses include gas, water, and electricity bills, though they may differ from place to place. For every person, whether they stay alone or not, utility bills are a necessary monthly expenditure. The only difference is the amount; when you stay alone, many utility bills can be minimized.
For instance, make all your cooking on Sunday and keep precooked food in the fridge. Then warm your leftovers in the microwave when its mealtime. This way you’ll save on water and electricity.
Internet and Phone
People who stay alone find themselves bored if not at work. This is because they don’t have anyone to talk to at home. Young adults spend most of their free time either on the phone or surfing the internet. This leads to a huge phone and internet monthly expenditure.
Young adults move around a lot, either to visit friends or attend parties. I mean, who wants to stay in a lonely house by themselves? Also, they need to move to and from work on a daily. So, a lot of money is spent on gas or daily public transit fees.
Monthly insurance payments are a must regardless of whether you stay alone or not. Insurance for health, life, car, renting, and long-term care are essential at this stage. Different insurance covers are available depending on one’s financial capacity.
Some expenses apply to all people regardless of whether you stay alone or not. Essential needs like food, clothing, utility bills, and transportation, rent/mortgage, and phone bills are inevitable.
The waiting alone period is critical because it cultivates a sense of saving in you at an early stage. This period teaches young adults that have just started to work and are living alone. It is the beginning of an independent life and therefore teaches a lot about paying bills, saving, and work ethic.