Young people who start living on their own often underestimate the amount of fixed costs. The costs do not include the rent and the costs for gas, water and electricity. First-time buyers are having a hard time on the housing market. Buying a house is often impossible due to the high purchase prices of houses. The rents are also difficult to bear for a single starter. This is also the main reason why home leavers have a hard time. In addition to the high rent or mortgage, they also have to bear other fixed costs. Saving well as long as you still live at home with your parents is a noble goal, but savings will run out in a short time if the monthly income is not high enough. First-time buyers who want to buy a house right away have to make major concessions. For example, they have to settle for a fixer-upper.
Prepare to live on your own
You can prepare yourself for this by gaining a clear understanding in advance of what awaits you when you take the big step. In addition, it is also necessary that you build up a buffer for bad times or for unforeseen expenses.
Be alert to benefits you are entitled to
If you have a low income, you are often entitled to allowances to make the costs more bearable. This includes rent allowance and healthcare allowance. On toeslagen.nl (from the Tax Authorities) you can calculate fairly easily to what extent you are entitled to the various allowances.
Buying a house or renting a house?
It will not be immediately possible for everyone to buy a house. The bank will only be willing to grant you a mortgage if you can provide sufficient guarantees that you can pay the monthly costs. If buying is not feasible or convenient, you should opt for renting a house or apartment. It is wise not to immediately reach your maximum. Some financial space will be necessary to tie the strings together.
Gas and electricity
Before you move into a house, you should not only ask about the monthly rent, but also about the advance that the residents now pay to the energy company. When buying a house, you also have to ask what the current residents have to pay per month. From this you can conclude how much you have to pay.
The municipality will also assess you for sewerage tax and waste tax. You will also receive a bill from the water board for water purification tax and resident tax. The level of your income can play a role in determining the amount.
Take out insurance
When you start running a household yourself, it is wise to take out a number of insurance policies. It is wise to take out at least home contents insurance and liability insurance (together: 8 to 15 per month). If you buy a house, you will also be faced with mandatory building insurance for the house (about 5 to 10 per month). In that case, the bank will also require you to take out insurance to save the repayment (depending on the type of mortgage) and a term life insurance policy. The costs for these insurance policies vary widely.
Reserve for replacement
In addition to purchasing items for your home, you must also make reservations for replacing the items. The furniture, but also the TV, washing machine and the like, will eventually have to be replaced. You can reserve for this by creating a savings buffer of at least a few thousand euros.
Cost of living
You also need to take into account the costs of daily living. On groceries alone, you should count at least 50 to 75 per week.
In addition to the fixed costs
Once you have insight into how high the fixed costs are. Can you determine to what extent it is possible to make ends meet every month?
- How much is my social assistance benefit?