Young adulthood can be an exciting and transformative time in one’s life. In addition to living on our own for the first time, many of us get our first taste of fulltime employment during this period. However, despite all the fun and self-discovery of your young adult years, this can also be a financially strenuous time. Between rent, food and transportation costs, budgeting is liable to seem like an uphill battle. Fortunately, frugality isn’t nearly as daunting as some young adults make it look. People getting their first taste of adult life can benefit from the following moneysaving measures.
- Hold Off on Getting Your Own Place
Recent years have seen a sizable increase in rent costs all over the country. While rent prices in large cities have always been fairly expensive, many small towns have also started to feel the sting of exorbitant rents. As a result, many young adults have elected to move back home after finishing college instead of immediately transitioning into independent living. Although this arrangement may be less-than-ideal for young adults who are yearning for independence, it will help you build your savings – which will prove invaluable when you eventually strike out on your own. Alternatively, if your parents are thoroughly opposed to letting you move back in, consider taking on a roommate or moving in with a friend. Sure, having your own place is nice, but having money in the bank is even nicer. Furthermore, opening a high yield checking account can be a great way to complement your newly robust savings.
- Make an Entertainment Budget
For many people, young adulthood is all about cutting loose and having a great time. Unfortunately, wild nights out, visits to restaurants and personal electronics can make a substantial dent in even the most robust savings account. If you don’t keep track of how much you spend on the aforementioned luxuries, you may soon find your finances depleted. To get a handle on this issue, work out a monthly entertainment budget. This money can go towards any type of entertainment – but once it’s gone, that’s it. Sticking to this budget may initially require a fair amount of willpower, but over time, financial self-control will seem like second nature.
- Find Cost-Conscious Ways to Have Fun
Having a good time doesn’t have to entail hitting the town every night. Finding things you can enjoy from the comfort of home is a great way to have fun without breaking the bank. Playing video games, enjoying your favorite movies and TV shows and hosting casual get-togethers can provide young adults with the entertainment they seek while keeping their finances intact.
As any seasoned adult can attest, sticking to a budget in one’s 20s is often easier said than done. Still, while responsible budgeting may be difficult for many young adults, it’s far from impossible. When it comes to saving money, a little bit of planning, self-control and foresight can go a long way. Young adults looking to get the most from their money are sure to appreciate the pointers discussed above.