Leaving the comfort of home to live independently is an exciting milestone, but it’s also filled with financial realities that many underestimate. Before signing a lease or setting up your first utility account, it’s vital to understand the financial truths you need to know before living on your own. These truths will shape how you budget, save, and thrive without the safety net of your family.
1. Housing Costs Will Eat the Biggest Chunk of Your Budget
Renting your own place is often the largest monthly expense. It is reported that 34% of the total expenses are for young adults. That figure doesn’t include related costs like water, electricity, internet, and maintenance. In South Africa, rent for a basic flat in urban areas like Johannesburg or Pretoria can range from R4,500 to R9,000 monthly depending on location and amenities.
Tip: Aim to keep your total housing costs below 30% of your monthly income. Consider sharing with a roommate or living slightly outside city centres for better affordability.
2. Everyday Essentials Add Up Quickly
Once you start paying for food, transport, cleaning supplies, Wi-Fi, and mobile data, you’ll quickly realise how much your parents were covering. By living on your own Ruhan van Zuydam states that “you were forced to face the realities of adulthood, such as bills, rent, groceries, and what they really cost.”
Groceries alone can cost an individual between R2,000 and R3,500 a month, depending on dietary habits. Add transport costs (around R1,200 if commuting), and you’re looking at a hefty monthly baseline before entertainment or emergencies.
3. Emergency Funds Aren’t Optional—They’re Essential
Many young adults overlook the importance of emergency savings. A recent report found that 28% of people had only one week’s worth of expenses saved, while another 25% could last just one month without income. These numbers highlight how financially vulnerable many are.
Unexpected expenses like car repairs, medical emergencies, or job loss can derail your finances if you’re not prepared. Experts recommend having at least three months of expenses saved in an easily accessible account.
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4. Financial Literacy Is the Foundation of Independence
Managing finances goes far beyond having a job. Without knowledge of budgeting, interest rates, and debt management, financial missteps are almost inevitable. 75% of teens lack confidence in their personal finance skills.
Certified Financial Planner Akeiva Ellis shared in a CNBC article that “My millennial clients … are grappling with mounting student-loan debt, a fiercely competitive job market, [and] surging inflation,” underscoring the challenges young people face today.
To succeed, start by educating yourself through online resources such as Smart About Money or MyMoney.gov.
5. Self-Discipline Is Your Greatest Financial Tool
The last of the financial truths you need to know before living on your own is arguably the most crucial: self-discipline. Overspending, especially on non-essentials like eating out or fast fashion, can sabotage your financial stability.
Research published in Frontiers in Psychology confirms that mental budgeting helps reduce risky financial behaviours. Creating spending categories and sticking to limits not only helps you save but also builds habits that foster long-term financial health.
Truths You Need to Know Before Living on Your Own
Living on your own is a rite of passage that comes with freedom and responsibility. By understanding the key financial truths you need to know before living on your own, you can make smarter decisions and build a secure future.