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Looking for money saving tips for young adults? As much as I hate to say it, the cost of living isn’t and will never be what it once was. In fact, it’s estimated that two-thirds of Americans today are currently spending away their savings, watching years of growth dwindle away to nothing. If this is happening to grown adults, think about the future of our young people. Not sure what that will look like? Well, let me put paint a picture for you. It’s not looking so pretty.
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Money Saving Tips for Young Adults
While this isn’t exactly encouraging information that young people want to hear, it’s the cold-hearted truth. With this in mind, learning to save money has never been more important than it is right now. Are you a young adult that struggles with saving money? If so, it’s never too late to get started. These are money-saving tips that every young person should know about.
Make a Budget
If you want to become an adult you have to start acting like one. And that means acting more responsibly when it comes to your finances. Creating a budget is the absolute best way for you to get started. You can do this by determining your income, planning for bills and expenses, figuring out what’s left over, and setting that aside for savings. Also, coming up with several financial goals you want to achieve along the way is a great way to keep you on track with your spending.
Save One-Third of Your Income
This is probably the number one tip that you will hear from every financial expert out there. Most experts say that you should try to save at least one-third of your income each month in order to be successful. This may not seem like a lot at first, but if you break it down over the years, it’s actually quite significant.
Pay Off Your Debt
One of the main reasons that most people struggle with saving money is that they already have a mountain of debt to deal with. Whether it’s student loans, credit card debt, or even medical bills, if you don’t pay off your debt and focus on saving instead, you’ll always feel stuck at square one. Does this situation sound familiar?
With any extra money that you can afford, make it a habit each month to make extra payments on any outstanding debts that you may have. This will not only help you get out of debt faster but also free up more of your monthly income for savings.
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Don’t Be Afraid to Get Creative
Savings doesn’t always need to be about putting money into savings accounts or investments. There are tons of creative ways for young people today to start saving their money. And one great way is by using cash-back apps and cards instead of debit or credit cards. Other ideas include finding cheaper ways to consume items such as entertainment, gas, and food – by choosing to cook at home instead of going out, for example.
Cut Out Unnecessary Expenses
You may not believe it, but trust me, you don’t need to wait in line for that expensive coffee or lunch at work every day. Instead, bring in your own snacks from home or make packed lunches ahead of time. It’s okay to splurge every once in a while, but $7 for a cup of coffee every day will quickly add up.
You can also cut back on cable TV subscriptions or streaming services, cancel magazine subscriptions you never read, and unsubscribe from store emails if they’re just tempting you to buy things you don’t really need.
Shop Around for Better Deals
If you’ve been using the same credit card for years without looking around for a better deal, now is the time! Whether it’s a different interest rate, a new rewards program, or just a way to pay off your debt faster, you should always be looking for ways to save money.
But this doesn’t just apply to credit cards. You can apply this principle to however else you spend your money. For example, if you’re looking to buy a new car, don’t just go with the first dealership that offers you one. Take a few weeks to shop around for a better deal and negotiate back and forth until you feel comfortable with your purchase.
Start an Emergency Fund
Most of you have probably heard of the financial guru Dave Ramsey before. But have you ever heard of his famous phrase, “Put money aside for a rainy day”? Well, even if it’s sunny outside, this is important advice that every young adult should take seriously. That way when an unexpected emergency comes up, you don’t have to rely on a credit card to bail you out of your situation.
Start by setting aside a few dollars each month into an emergency fund until you reach your goal amount. This can literally be anything from $500 to $1,000 depending on what works best for you and your situation.
Start Investing Now
Lastly, it’s also a good idea to start thinking about investing. While you’re still young, your money has the most potential for growth and can grow exponentially over time. Take some time to do your research and find a reputable broker that you feel comfortable working with. A lot of jobs and careers already provide amazing 401k and other investing programs for their employees. Your place of employment may already have one. Don’t hesitate to get started, even if it’s only a little. Acorns is a great way to start investing your money little by little.
These are just a few money-saving tips that every young adult needs to know about. With these tips at hand, it’s easier than ever to start saving and planning for your future! And while the cost of living might seem extremely high right now, remember that you’re young – so there’s plenty of time to grow your savings account and work toward becoming financially independent. So don’t wait any longer and start saving today!
What money saving tips for young adults would you share?