Money, money money… it makes the world go round, allows us to buy nice things and it can determine whether we live in a huge mansion or a 2 bed flat for our entire lives. If there is anything we need to learn about as we enter adulthood it’s money.
If you aren’t too familiar with finances and you have no idea how to begin budgeting your life, you are not alone. Most young adults have no idea what they are doing with money for years, and it can take a lot of trial and error to make the right decisions for our lives. For now, here are some of the simple tips you need to make sure you follow as a young adult.
Cook more, eat out less
When we reach adulthood and we finally have a job, it can be incredibly tempting to make the most of our freedom by having meals out with our friends and buying takeaway pizzas every week as a treat. But if you do this all of the time you will never be able to save up any money and it can leave you unable to do the things you want to do with your life. It could be the inability to buy a house, pay for your car insurance or travel for a while… but eating out less and cooking at home as much as you can will give you a lot of extra money to play with.
Find cheaper entertainment
Most of us in our late teens and early twenties use our pay checks to pay for nights out every weekend with our friends. Having fun is something we should be able to do, but when it comes to nights out, alcohol can burn a pretty large hole in our pockets right from the off. If you want to save money and find a cheaper way to have fun, you can buy your own alcohol and stay at home, you can go out for activities with friends during the day time and enjoy movie nights. Having fun doesn’t need to cost the Earth!
Learn how to save
Saving money is hard, and when we don’t earn a huge wage it can feel impossible to save any money at all. The key is to find a small amount which you can set aside each month and make sure it is consistent. It could be $20 or it could be $100 dollars… just make sure you only save up what you are comfortable with and this will allow you to at least begin making headway with an emergency fund.
Pay off your debts
Debt is horrible and we can come into debt for a number of different reasons. You might have taken out a credit card and gotten into debt for not paying it off, you could have student loans, or you might simply owe your parents money. Debt is something which we need to tackle head on because it affects our credit rating and this can prevent us being able to buy a house later in life. You can pay off debts with consolidation loan rates, you can ask for a new payment plan with the lender or you can find help with your family and friends. Make sure you focus on becoming debt free for a less stressful adult life