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But its not within everyones reach.
Here are 15 key indicators to help determine ifyoure financially prepared.
You Have Stable Income
Your income should comfortably cover all living expenses with room for savings.
50% for needs, 30% for wants, and 20% for savings and debt repayment.
If you might maintain this balance while covering solo living costs, its a positive sign, he said.
If the answer is no, youre not ready to live alone.
Rent Is Affordable
Housing costs shouldnt exceed 30% of your gross monthly income, said Salahi.
For example, if you earn $5,000 monthly, your rent should ideally be $1,500 or less.
Remember, this includesrent and utilities.
This fund should cover all solo living costs, not just your current share of expenses.
Musson agreed this is an important factor to consider before going solo.
You should have a savings goal and contribute every month, she said.
Your Debt Is Manageable
According to Salahi, your debt-to-income ratio should be below 36%.
Your monthly debt payments (including projected rent) should not exceed 36% of your gross monthly income.
High debt levels can make solo living financially stressful, he said.
This surplus provides a buffer for unexpected expenses or lifestyle adjustments, Salahi explained.
Create a list of essential items and research prices.
can cost $3,000 to $5,000 or more.
Do you have enough to cover that and not deplete your savings?
You Plan To Get Renters Insurance
This is often overlooked but crucial, Salahi added.
Budget for about $15-$30 per month for basic coverage.
Salahi recommended budgeting an additional 20% above your current grocery spending.
As long as you might comfortably factor these expenses into your budget, you should be good to go.
For example, theadded gas expenseor taking additional public transportation can easily add up.
The last thing you want to worry about is financing ahuge medical billonce youve relocated.
Aim to save at least 15% of your income for retirement.
Salahi cautioned that the freedom of solo living can sometimes lead to overspending.
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