Young adulthood can be a highly transformative time. In addition to marking the first time many people are employed on a full-time basis, this period also entails leaving the nest and supporting oneself. Unsurprisingly, independent living can be a frightening prospect for young adults who have never lived apart from their parents. Furthermore, saving money and sticking to a budget can be difficult for people who lack experience in both areas. However, while developing financial savvy may seem daunting, it’s well within the abilities of most young adults.
1. Don’t Pay for More Living Space Than You Need
When living on your own for the first time, your choice of residence can have a dramatic impact on how much money you’re able to save. For example, renting a house, high-end condo or large apartment is liable to eat up a substantial portion of your monthly income. While it’s always nice to have extra space, necessity must be taken into account when perusing prospective homes. Depending on how many things you own, you may even be able to make do with a nice studio or one-bedroom apartment. This may not provide you with an abundance of free space, but it will ensure that you have enough room to live comfortably and enable you to save a sizable chunk of your take-home pay.
As an added bonus, settling for a small residence in your young adult years can help you put away money for a much nicer place down the line. So if you have dreams of homeownership, there’s no time like the present to start squirreling away funds. When working with mortgage companies in PA, lenders are sure to be impressed by your dedication to building your personal savings.
2. Stick to a Monthly Entertainment Budget
For many people, young adulthood is all about hitting the town with friends and partying into the morning hours. While the occasional night out can certainly be exhilarating, such excursions can make a sizable hole in your finances if embarked upon too often. As such, it’s in your best interest to write up a monthly entertainment budget and stick to it. Quiet nights at home may not give you the same rush as partying with friends, but they can be a boon to your savings.
3. Hone Your Cooking Skills
It isn’t hard to see why so many young adults prefer dining out to eating at home. It’s fast, it’s easy and there’s no mess to clean up at the end of night. Unfortunately, frequent restaurant visits can quickly drain your finances, even if you limit yourself to fast food joints and mid-tier options. Preparing your own meals may be cumbersome, but it can also be cost-effective and incredibly rewarding. So if dining out has eaten away at your savings, break out the recipes and start honing your culinary skills.
There are many good things about young adulthood. Developing a sense of independence, earning one’s own livelihood and creating a home for oneself are rewarding accomplishments that can help people make the transition from children to adults. However, in order for your loftiest goals to be met, you’ll need to practice smart budgeting and take steps towards saving money. While these may seem like daunting prospects, a little bit of commitment and forward thinking can go a long way when it comes to bolstering your personal finances.