‘Money: It's Personal' — Budgeting to live on your own

By Ivan Herrera - Web Producer, Valerie Gomez - Video Editor

SAN ANTONIO - If you're ready to get out of your parents' home and make it out on your own, you'll need to take on financial responsibilities and learn how to manage your money correctly.

Here's a few tips from the Federal Trade Commission that can help you out:

First things first — you'll need a job to pay for your expenses. Once you know how much you'll make a month, subtract 30% for taxes to determine your net monthly income.

Next, create a budget and subtract these costs from your income to know how much you'll have left over at the end of the month.

You'll need to budget for a place to live. Look for apartment listings and add your monthly rent expense to your budget.

When it comes to groceries, estimate the amount of food you'll need to buy each week and multiply the cost by four to estimate your monthly grocery costs. Don't forget to add essentials, such as personal hygiene and laundry products.

Determine how you'll get around town. Are you buying a new car or paying for public transportation?

If you're buying a car, don't forget to factor in interest and insurance costs to your budget. If you're using public transportation, add the monthly bus or train costs to your list.

Other expenses to consider adding to you budget include health insurance, gas costs for a car, utilities, money for buying clothes or getting a haircut, and, of course, don't rule out putting aside some money to save and for miscellaneous expenses that could come up.

For more tips from the Federal Trade Commission, click here.

“Money: It’s Personal” is a series on KSAT’s News at 9 that breaks down personal finance topics. If you have a suggestion or question on the types of topics you'd like us to explain, click here.

For more stories from KSAT's News at 9, visit KSAT.com/newsat9.

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