Saving money as a young adult can be very difficult, sometimes as a young adult, I had wanted to spend money on anything even if it is not a necessity. Soon, I started to realize that I had no savings especially, in case of emergency.
Guys! I thought of saving but I was finding it difficult until I came up with some strategies to save or I risk goings broke.
At first, it was not easy making a decision to save because I wanted to be able to buy anything I want, when and how I wanted it without considering if I am eating out my paycheck.
Going broke taught me serious but important lessons. Would you like to know how I got over my broke state and start saving up?
Here are 15 incredible money-saving tips for young adults:
1. Set up a Budget:
Saving money is important at any age. Your income and new expenses affect your ability to save, which explains the need to have a budget.
Know what you are spending on, how you want to spend it, when and why?
Making a plan on how to spend your money saves you from unnecessary expenditure, therefore, you have all the opportunity to save more.
2. Have an Emergenccy Fund:
As a young adult who wants to really save, you need to have an emergency fund to avoid depression or the idea of running back to your parents.
When you have an emergency fund that is not included in your budget, it will end up not affecting your budget.
You should learn to save a few dollars out of at least 10 percent of each paycheck, you will be surprised that at the end of the day, you have saved about three to six months’ expenses.
3. Learn Self-Control:
Learning how to control what you desire but they are unimportant should be controlled if you really want to save.
Although you can easily purchase stuff with your credit card the moment you want it, it’s better to wait until you’ve saved up the money to avoid getting into unnecessary debt that will subsequently affect your ability to save.
4. Protect Your Health:
It is best to get health insurance premiums, so you can save up unnecessary expenses on health.
Also, put into practice steps on how to live healthy like eating fruits and vegetables, and maintaining good health hygiene.
By doing these, you will thank yourself when you aren’t paying exorbitant medical bills expenses.
5. Always Keep Track of Your Expenses:
Keeping a track of all your expenses helps you to figure out how much you spend.
Once you have your expenditure such as gas, groceries, mortgage, and others then you total each amount.
Make sure you are accurate or search for a free-spending tracker to help you get started. If you are a Bank of America customer, you can use their free-spending budget tool.
6. Readjust Your Spending:
I began to save more when I stopped spending so much. There are non-essential spending that you need to identify and cut off, such as eating out almost every other day, cell phone expenses, or maybe television so as to help you save.
7. Choose the Right Saving Tools:
It is wise to consider using FDIC. Insured deposit accounts if you are planning for a short-term goal such as; a saving account and certificate of deposit.
For long-term goals, you could use securities such as stocks which are available through investment accounts with broker-dealers.
These tools help you to save the right way. You have a different account option to pick from if you look carefully.
8. Save Automatically:
I have different accounts where I direct my money or I might even split my direct deposit just to have my paycheck go directly into my savings account.
Besides, most banks offer automated transfers between your checking and saving accounts.
Having your direct deposit and having automated transfers reduces the temptation to spend money. Setting up automatic transfers between accounts is quite easy with mobile and online banking.
9. Set Your Priorities Right:
Most times, people find it difficult in knowing what they want, especially in the nearest future.
After expenses and income, it is important to know your goals as it impacts how you direct your savings.
For instance, if you are planning to take another course in the nearest future, you could start saving up money for it immediately.
10. Always Observe Your Savings:
To know if you are actually saving or not, always revisit and make a review of your budget and check your progress at least every month.
This will help help you trace and fix a problem while you stick to your personal savings plan.
11. Figure out Why You Want to Save Money:
Having in mind what matters most to you, saving money becomes very easy. You will not just set meaningful goals but also achieve them.
For example, I started redirecting my money towards something that has value instead of spending a few dollars daily. When I realized how much I had spent daily just on coffee I realized that I could have saved that amount to a large sum monthly and used the money for something more valuable.
12. When it Comes to Entertainment, Look for Less Expensive Ways:
Most often, young adults would want to hang out on Friday nights, after all, it’s the weekend and work is finished hence, you’re finally free to relax and party your weekend away.
Trying to spend a few dollars on having a good time is not bad after all. Besides, 20s are all about making memories so you think, I guess! Unfortunately, this behavior leads young adults into living paycheck -paycheck!
There are lots of ways to have more fun, spend less and save more! Such as cooking at home, attending free classes at the local library, sightseeing, and watching a movie with friends at home. The whole idea is sticking to only free sources of entertainment, for the moment at least.
13. Adopt Living Like a College Student to Avoid Inflated Lifestyle:
Robbie in “Eat Money” believes that for a young adult to save, he or she should embrace living like a college student who is careful about spending money perhaps if he or she is struggling to pay fees.
Being single and making decisions can be tough, after all, you work for the money and should have a say on how you choose to spend it.
However, trying every year to upgrade your phone or buy a new car can lead you to live on a piled credit card debt.
14. Consider Taking Advantage of Financial Tips or “Found Money” to Save Money:
I had saved much when I decided not to spend money gifted to me on special occasions or even bonuses.
Since this money is unexpected and I never thought it will come, I won’t miss a thing. So, I have to sacrifice that money to save my future.
When there is an increase in your hourly pay or salary consider it unexpected money and save up. Do not increase your lifestyle based on a raise or a found money instead, keep your expenses the same.
15. Learn to Save at Least 10% to 26% of Your Income:
Every paycheck is never the same, no matter how small it is, set some money aside. Make this a habit. It will help you in a long run.
Learn to keep a check on where you can save money. Credit cards are necessary but don’t apply for several at one time instead take it easy and use your debit card. This helps to keep your expenses under control because you cannot spend the money you don’t have. And you shouldn’t spend money you don’t have when you are trying to save.