Tip #9 - Growing up means lowering your expectations

It's interesting that our parents, in general, have all worked very hard to give their children (us) a "better future". Us Gen X- and Yers are just plain spoiled when it comes to our expectations of what is normal in life. Look at it this way. Our parents worked up the corporate ladder, saved, scrimped, and spent strategically to get where they are today. The assumption that when we leave the nest we will keep the amenities of today's lifestyle - big house, nice furniture, clothing, gadgets - is foolish.

So I challenge you: ask your parents how they were living at your age. Chances are they didn't have a brand new car, didn't have their own three-bedroom house, and didn't earn the salary to cover all of that.

For example, my Mum's house is lovely, but when she was my age she lived in a tiny, cramped apartment with furniture cobbled together from empty boxes and bricks she found on the street. Similar story for my dad.

When I graduated University two years ago, I had only one expectation: independence.

I expected to be able to live independently from my parents, but WITHIN MY MEANS. In the past two years that has meant renting an apartment in a cheap part of the UK, and later renting a small apartment in a poor, destitute part of London, because that's what I could afford. We got furniture from a variety of sources, including second hand stores, family, and friends of family; We only bought a new gadget if we could justify the need and the expense based on that need; We took the bus (read my previous post about transportation) because the tube was more expensive; We walked to the supermarket to get exercise and avoid spending money on the bus.

I understand that the expectation of independence is not always needed, wanted, or possible. But no matter what your circumstances, you need to view yourself as no longer under the safe protection of your parents' money, but as responsible for your own financial decisions and the consequences of poor financial decisions early on.

Tip #8 - Park your car... for good

I recently got my driver’s license from the UK. On my arrival back in Canada, my Mum gave me a car – a yellow convertible no less! It’s still in its box,  and it's only an inch and a half long, but the sentiment was nice.

There’s a point here, I swear. The reason I got my driver’s license was not to get a car, but to allow myself to drive or rent one when necessary. Owning a car is, put simply, expensive and unnecessary unless a) you require one for your job (it’s part of your contract or serves a useful, tax deductible business purpose), b) you live in the absolute middle of nowhere (like my Mum who is half an hour’s drive from the nearest store, and a 45 minute’s drive from the nearest bus into town), or c) you or a family member have severe mobility issues which make other modes of transportation extremely difficult.

If you don't fall under any of the above categories, the costs of running a vehicle are prohibitive. Purchasing the car in the first place aside, the monthly costs of insurance, taxes and gas, let alone emergency maintenance fees and two sets of tires for people in cold weather regions can mount exponentially. And what’s the point when there are other ways to get from A to B?