College tuition. Car. Bills. Backpacking trips to Europe.
These are just a few of the things that young adults can expect to pay for. And if you’re saving up for a home or a baby, things can only get more expensive. The last thing you want is to rack up a ton of credit card debt.
Learning to manage finances is a big part of becoming an adult. The sooner you learn how to save money, the better off you’ll be. Believe it or not, budgeting lets you stretch your dollars further.
Keep reading for some financial tips on ways to save money.
1. Spend Less On Eating Out
It’s tempting to order out during a hectic day at work. No one likes eating a packed lunch. By the time you get around to eating it, it will probably be cold and soggy.
But one of the most important budgeting tips is understanding that things add up fast. $7 on a meal might not seem like much, but $7 every day is. Just eating out once per day adds up to about $200 a month.
Learn to cook simple, inexpensive meals that still taste good. Prepare these meals in advance, and cook in large portions. Save them in plastic containers in the fridge so you can bring them everywhere you go.
2. Make Your Coffee at Home
Starbucks coffee tastes great, but it’s not cheap. $3 for a cup of coffee also seems like nothing until you multiply that by a whole month.
You can make excellent coffee at home. You’ll just need a cheap coffee maker and coffee grounds. It only takes a couple of minutes to prepare, and the coffee will still taste great.
If you’re not satisfied with the cheap coffee, then investing in a cheap espresso machine may be an option. In the long run, this is much cheaper than Starbucks. You can make Starbucks-quality coffee from the comfort of your home.
That doesn’t mean you need to abandon Starbucks forever. Just limit trips to the barista.
3. Party Less
We get it, F.O.M.O. is a real thing. But what’s also real is the bill you can rack up during a single night of partying. Add in some drinking, and making educated decisions about purchases becomes harder.
The simple solution? Don’t go out as often. If you love to party hard, you’ll have to learn how to party less.
Consider taking the party to your apartment. Buying a bottle of wine will cost much less than ordering individual drinks at the bar. If anything, you can use this as a chance to limit alcohol consumption.
4. Limit Your Subscription Services
Everyone has at least a handful of subscriptions: Netflix, Spotify, cloud storage, and more. But like the above, these things add up to a huge monthly cost.
If you pay for multiple streaming services, consider paying for only one at a time. Make a schedule for the shows you plan to binge watch, then finish them off in a month. Once finished, you can cancel your subscription and move on to the next streaming service.
If you want to save on music, consider going with the free streaming plans. You’ll have to listen to a few ads, but you’ll still get all your favorite music.
5. Buy a Budget Phone
The newest Samsung or iPhone may seem irresistible. But believe it or not, you don’t need a top-of-the-line phone. Most budget phones will do the job.
If you’re keen on the best features, then consider Chinese phone brands. Xiaomi, OnePlus, and Oppo all make phones for less than $500 with premium features. You’ll have excellent specs for much less.
Try to make your phone last longer. Keep the battery between 80 and 40 percent to increase the battery lifespan. Treat it well, and it will last at least 2 years.
6. Get a Cheaper Phone Plan
Unlimited data is awesome, but one of the best budgeting ideas is to limit it. Buying a phone plan with less data will save you a lot of money.
Use this as an opportunity to do a phone detox. Less data means you’ll be less tempted to scroll through Instagram. You’ll be able to focus your energies on living life when you’re away from home.
Consider a pay-as-you-go phone plan. You can use data only when you need it, and it will be much cheaper in the end. Some phone plans allow you to make calls through WiFi to save money.
7. Use Public Transportation
From gas to maintenance, even a cheap car can be incredibly expensive. Add on the parking fees and insurance and they could run your finances into the ground.
No one likes public transportation, but it’s affordable. Plus, it makes you walk and stand more than you currently do. And since your hands are off the wheel, you can get more done on the way there.
Use this as a chance to bike more. Biking gives you fresh air and works those sedentary muscles.
8. Plan Budget Vacations
Vacations are notorious for adding up to be way more expensive than planned. Avoid this by planning ahead.
Rather than booking a hotel, check out a hostel or Airbnb. Buy ready-made food from convenience stores instead of eating out. Take local public transportation instead of expensive taxis.
Enjoy the free things. Many vacation destinations have activities that come at a low cost of $0.
Consider spontaneous vacations to cheaper places. Airlines will occasionally drop the price of tickets for a certain destination. Depending on where it is, you could get a great vacation for much less.
9. Live With Your Parents
For a young adult, living with your parents is the opposite of freedom. It means more rules, more nagging, and less personal space. But, it is much cheaper.
Take advantage of living with your parents while you can. If they let you live rent-free, that’s money you can save up for later. Even if they don’t, they won’t charge you nearly as much in rent as someone else.
Living with parents means you can cut down on meals and electricity, too.
10. Pay Off Your Credit Cards on Time
There’s no getting around the fact that credit card companies are predatory. They give you access to huge sums of cash with low-interest rates. Then once you’ve racked up debt, they get 3x as much money out of you.
If you can’t afford it without credit, contemplate whether you really need it. You need to make a habit of paying things off quickly, in as few payments as possible. Credit cards make it very easy to pay more than you should have.
Avoid giving yourself a high credit limit. Check your bank account and only make purchases as you have the money. Take advantage of credit points to save money on future purchases.
11. Make an Actual Budget With Budget Software that Includes Financial Tips
No one wants to budget. It’s boring and requires keeping a record of everything you buy. But if you want the most financial freedom, it needs to become a habit.
Budgeting helps you realize how much money you spend. It becomes a tool for you to identify the things that you waste money on. If you go over budget, then it teaches you to identify ways to limit spending.
Luckily, there are plenty of apps out there that make it easy to budget. They’re often free for students. Download the app onto your phone and then begin to track purchases.
These budget apps come chock full of financial tips. They’ll teach you little things here and there that you can use to save money.
One of the best parts about having a budget is that it lets you know how much fun money you have. If you need to save up for something big, you can plan ahead to buy it.
12. Use the Two-Week Rule
Impulse buys are a lot of fun. You see something that you want, and suddenly there’s nothing else in the world that you desire more. But for someone trying to save money, this is financial suicide.
The two-week rule is a great way to evaluate purchase decisions. Whenever you want to buy something, wait two weeks. Over the course of those two weeks, there’s a good chance you’ll no longer want it.
If you do want it by the end of those two weeks, then you can start saving up. Waiting even longer may help you to get over the “honeymoon” stage of making a purchase.
Get Your Loans from Credito
Young adults are in search of any financial tips to save them money. Often, saving money is about making lifestyle adjustments. Use the above tips so you can have the funds you need for big future purchases.
However, sometimes you need a loan. Whether it’s purchasing a car or a home, the best solution may be to borrow money for a purchase.
Credito makes this easy and fast, and features the best interest rates. Check them out before preparing for your next big life purchase.
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