Your parents have cashed in their investment in raising, feeding, clothing and educating you. Why not give them the best return on their investment possible by showing them you were listening.
Smart financial choices start long before you leave the nest.
Understanding your financial present will give you a jump on your future financial security. The decisions you make now, will be the foundation of financial resume. Make it a solid one. Whether you are renting your first apartment, buying your first home or investment property know that your credit and financial history will be speaking on your behalf.
Set a Plan
Financial aid, credit cards, unexpected medical emergencies, and those weekend party purchases can end up costing you far more than you think. Enjoy your youth with an eye to your future. Assume you are not going to win the lottery, get a reality show, you may not be able to "make it up later" and you never know what job market you will be entering at the time you want to rent or buy.
Renting your first apartment can be daunting. The search alone is a full time job. Start planning now. Knowing you have made solid choices will give you the peace of mind and confidence to pass any rental application.
What are you worth right now?
- Cash in the bank.
- Immediate income
- Projected income (be conservative)
What is your credit score?
- Your score will affect your search. Many landlords have minimum requirements.
- Fix issues immediately and get the corrections in writing.
- Understand what your score means and how to maintain it.
- You will need your tax documentation.
- You will need your banking statements.
- Show a documented positive cash flow in your accounts
- Keep digital and hard copies of your tax history.
Credit blemishes are not a rental application death sentence. Deal with the issue quickly and with documentation. If you cannot pay it off, set a payment plan and stick to it. Show that you are on top of the situation.
Now that you have your financial data, it's time to make the magic happen. Adding your information into your PlanWise account will give you a visual representation of your current and projected financial snapshot.
Time to set a plan to rent an apartment. Add your expenses, income, debt and other miscellaneous expenses.Try a few rental price scenarios, accounting for possible job loss or medical emergencies so you will go into your search with a clear head and your true affordability. When your Realtor sends qualified leads, add them to your plan so you can make an informed choice.
Just because you are entering the rental market, there is no reason you can't start thinking about your future home purchase.
Set a plan in your PlanWise account to buy a home. You will see this future option along side your present. You can make changes as your your needs, your expenses, and your income changes. This can help guide your current financial choices and keep you on the right path.
Always keep your eye on the prize!
Be true to yourself.
It's ok to dream a little dream but do it with digital play money, not your savings. This is the place to test every scenario and see the results up to 50 years into the future.
When adding expenses, be honest about your spending, even the poor choices. Seeing your mistakes onscreen, will help you make corrections. Fooling yourself will only hurt you later. This encrypted, secure space is your on ramp to your financial success.
"The first principle is that you must not fool yourself—and you are the easiest person to fool." - Richard Feynman
Ready to begin? Add a future plan right now.