**This article was updated on 7/27/21**
Whether you’re going off to college or living alone for the first time, managing your finances is an important skill to learn and hone. When you’re starting out as a young adult, the chances are that you’re not making a lot of money, to begin with. But since your expenses will be equivalent to any other adult, it’s crucial to understand expenses and how to regulate them.
Unfortunately, most school curriculums don’t offer financial education for young adults. It’s just a thing you’re expected to figure out yourself. But don’t worry! We’ve put together a comprehensive list of money-saving tips that will help you out.
Take a look:
- Start with a Budget
Whether you’re 22 or 42, a budget is an essential part of managing finances. Don’t make the mistake of spending without care and hoping that your paycheck will last till the end of the month.
Create a budget to know how much you can spend on everyday and long-term expenses.
- Self-Regulate Expenses
You probably won’t have a parent or another adult reprimanding your careless spending. As an adult, you have to learn how to self regulate your expenses and make an effort to spend rationally.
- Minimize Monthly Bills
Go through your monthly utility bills regularly to ensure they are not unreasonably high. Yes, it can seem like the most mundane activity to do in your spare time, but it will help you with long-term savings.
For example, if you’re paying too much for electricity, you should compare electricity providers and switch to a more suitable one. The same goes for car insurance, not all insurance providers are going to give you the same quote, so do your research.
It’s also important to look at your automated payments every few months to make sure you’re still using them. Examples include your streaming services (Hulu, Netflix….) and app subscriptions you may have forgotten about.
- Learn How To Cook
Cooking is a quintessential skill for every adult. So stop with the excuses that are a ‘bad cook’. Just like any other skill, you can get better at it with practice. Eating out every day is costing your health as well as your wallet.
Cooking and eating home-cooked meals will help you eat cleaner and save money.
- Buy Second Hand
Are you planning to buy a car? Do you need some furniture pieces for your home? Do you need to shop for a new outfit? For any major expense, make sure you explore second hand options before buying it brand new.
There are great odds that you can purchase it at a heavily discounted price.
- Discover Your Saving Goals
Just saving for the sake of saving may not be motivating enough for some people. That’s why you should discover and set your financial goals. Whether you have your eyes on a new phone or you want to buy a house, let financial goals help you save.
- Think Before Tapping ‘Buy’
When you’re shopping for non-essential items, give yourself a buffer period to think it through. This will save you from the hassle of making impulse purchases and regretting them later.
- Shop with a List
When you’re going out grocery shopping or shopping for anything, make a list to know exactly what all you need. Store displays are specially designed to lure shoppers. Having a list will help you avoid unnecessary purchases.
- Create an Emergency Fund
From an unexpected medical bill to losing your job out of the blue, there are all kinds of financial situations you need to be prepared for. Try to save a part of your monthly paycheque to create an emergency fund that will serve as your safety blanket.
- Start Investing
Are all your savings just sitting in your bank account? It’s never too early to learn about investing. Money has the potential to make more money. So explore ways to wisely invest your savings.
Understandably, everyone’s financial situation in terms of income and expenses is different. But implementing the aforementioned basic money management tips will set you on a path to a secure financial future.