You are in your twenties staying at home with your family and you have a job. How best should you manage your money?

How a 20 something year old staying alone spends his/her money is different from how a 20 something year staying with their family or guardian spends their money. The former has more financial obligations; rent, food, utility bills, et al.

This means we are looking at a 20 something year old who is making money and not giving 30% to rent, and a further 10% to utilities.

How best should such individuals manage their money?

The moment you get a job is a sign that you are getting mature enough to assume some financial responsibility. Plus it’s a wake up call to considering the possibility of moving in by yourself, especially if said job is secure.

You’ll definitely have to move in by self at some point or the other so you better start preparing for it as soon as you start earning. Getting your own place is one of the most expensive situations one can find themselves in. There is the deposit you’ll have to pay, some property owners might even force you to pay 2 months deposit. There is the first month rent, electricity and water deposit plus basic things you will need moving in by yourself.

Such expenses can have a sever dent on your income so it’s best to start preparing for them before hand.

Just as it is advisable to have, at most, 30% of your net income catering for your house rent, you should at least save 30 percent of your net income for expenses you will incur when moving in by yourself.

[READ: My Money in My Twenties, Are You Ready to Move Out?]

Independent individuals staying by themselves have 20% of their net income catering for their utility and transport expenses. Since you are still staying with your family or guardian  utility bills are usually catered for by the person responsible for you. As a sign of maturity, 20%  of your net income should be used to assist in catering for your family’s utility bills.

Doing this prepares for the utility bills you will incur once you move in by yourself.

It’s never too early to start investing, 10% of your net income should be invested. The earlier you start investing the better. There are investment oportunities which have a relatively low initial investment capital such as the Old Mutual i-Invest program where one can invest as low as KES 4,800 as the initial investment capital. The good thing is that you get to invest from the comfort of your mobile phone.

Investing 10 percent of your net income every month comes with the advantage of reaping higher results in the long run, plus will make investing a second nature to you.

10% of your net income should go into savings. This is a totally different saving arrangement from the 30% you will be saving each month to cater for your moving out expenses. This entails keeping some money aside for a rainy day.

Another 10 % should go to charity. This amount could be spent as tithe or an amount you can give to charity or give to your parents as a gift.

Despite spending money responsibly, you should have some room for fun. 20 percent of your income should cater for your entertainment and discretionary expenses.

• 30% saving for your moving out expenses
• 20% contribute to the family utility bills expenses
• 20% on entertainment and discretionary expenses
• 10% on investing
• 10% on savings
• 10% on charity

Starting to budget your money while still staying with your family not only makes you financially responsible, but also makes it easier to budget your money through out your life. There’s no way around it. You have to budget your money in order to spend wisely.

Try it out today and see how it will transform your financial life.