This article agrees that living separately from one’s parents for the first time could be very difficult. The author explains that this is because there are several ways where young people could go wrong and being reckless with their credit cards (if they have one) is only among them. Young people are being warned about what the author calls the “hidden expenses” which living independently entails and then offers suggestions on how to save the situation and come up on top.
According to the author of the article, the first concern of a young person under the circumstances is that he/she usually joins a company at the entry level position which generally does not pay much. This could be compounded by the fact that most entry-level compensation packages do not come with health insurance. Therefore, if any illness or accident befalls him/her, the problem of paying for the health or hospital expenses from his/her own pocket becomes an intimidating prospect. The pay and the health issues are only part of the “hidden expenses” which include, according to the author of the article, miscellaneous items like maturing college loans, room or apartment rental, roommates who do not equitably share with utilities expenses, and other necessary costs associated with maintaining an apartment like furniture, kitchen utensils, and others.
In the second half of the article, after cautioning young people against these “hidden expenses,” the author offers some suggestions on how to make life manageable. First, a frugal lifestyle must be observed in order to be able to save for the rainy day. Then if health insurance is not available under their terms of employment, they should not fail to acquire one because hospitalization is a major “hidden expense.” Another suggestion is for them to aspire to be creditworthy so that they will not be paying everything in cash – get a couple of cards and use them carefully. Finally, if their budgets permit them, they should try to invest by contributing to their company’s 401(k) plan and insure their future.
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