Are you looking for proven money saving tips to grow your income? If so, you have come to the right place.
Most see their paychecks as a way to get though the daily needs and not as a future investment like saving for future difficulties.
But financial success is at most determined by just putting aside a little money daily, weekly or even monthly.
The following are relatively easy ways to save money and how to manage your newfound money.
- 1 1. Set long-term financial goals
- 2 2. Think through your purchases
- 3 3.10-15% of your income
- 4 4. Learn to live with less for now
- 5 5. Insurance
- 6 6. Financial plan
- 7 7. Invest in yourself
- 8 8. Ask for help
- 9 9. Entertain at home
- 10 10. Savings account and checking account
- 11 11. Nickname your savings account
- 12 12. Cash diet
- 13 13. Delayed gratification
- 14 14. New vs. thrifts.
- 15 15. Reduce your subscriptions
- 16 16. DIY
- 17 17. Compound interest
- 18 Conclusion: 17 Best Money Saving Tips for Young Adults
1. Set long-term financial goals
This is literally the first step for a financially independent young adult. It’s the most basic of all money saving tips you will ever find.
You can set up long term financial goals by creating a budget, establishing habits involving saving money, an emergency fund, and as mere as it seems, clearing yourself of debts.
Setting a budget involves reviewing your income and spending then managing all those costs. You make changes on how you spend while setting a realistic budget and committing to it.
Always set aside a little room for play money just in case.
2. Think through your purchases
To effectively start saving, you have to think through your purchases before you make them.
You need to look at every aspect of the item you want to buy because advertisers will only sell the good aspect of the item.
Then consider your life without the item since chances are, we don’t actually need what we want.
This is one of the most effective money saving tips since it allows you save up money by buying only what you need.
3.10-15% of your income
Always put aside 10-15% of your income, no matter how small it is.
This is one of the most crucial money saving habits you need to set because, by deciding to do this, you have to live within your means.
This keeps your finances under control as you only spend what you actually have.
4. Learn to live with less for now
Being a young adult has its perks as you don’t have a lot of expenses so some spend more on what they think they should have.
If most college students could have back the money they spent on clothes, accessories, eating out etc., their accounts in their later lives would be twice the size.
The art of living more with less is one step to take to let go of the want for things.
Learn how to survive with less, and preferring quality to quantity.
Minimalism will only last for now to make your future much luxurious.
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Being responsible with money will require protecting it.
Purchase a long-term disability insurance product then term life insurance policy.
It will be much cheaper as a young adult so buying insurance products earlier will save you a lot of money in the long run.
6. Financial plan
Immediately you are financially independent, all you want to do is move in by yourself and become self-reliant even without a financial plan.
It is the right step just not timely. Before you do, make sure you have expenses saved for emergencies, utilities and paying back student loans (for those who have them) without it affecting you lifestyle.
Doing this will strain your finances so much that you have none left once you pay for your needs and that way, you have no money to save.
7. Invest in yourself
Making money all comes down to definable building blocks. Whether you are still in college or out, you have a lot to learn in a world of competition,
You have to be constantly learning due to the changing marketing demands thus where investing in yourself comes in.
Invest in your own skills like, building a website or being good at graphic design, and create huge returns for yourself.
One can do and learn almost anything online so utilize these online resources e.g. YouTube.
Think long-term as you invest in yourself and avoid the hype of get-rich-quick investments.
This is one of the money saving tips that will improve your life for the better.
8. Ask for help
Asking for help is one of the cheapest and easiest money saving tips you will find.
It is not as easy as it seems though.
Learn Vest is a website that offers one-on-one financial planning advice for anyone.
You could also find a local financial advisor.
Some even hire a financial advisor at an affordable price who will take them on with their limited assets and help them on their taxes which can be an alien venture for students who just graduated.
9. Entertain at home
You are in your twenties and it is that time when you want to throw parties, go out for fancy dinners with your friends and hype every weekend.
But it also a great time entertain cheaply for the future you.
Entertaining at home is cheaper but it doesn’t have to be boring.
Instead of weekly hang outs in expensive places or meet ups for fancy pizzas with your friends, you could call them over.
You could always make home-made pizzas and have fun doing it.
10. Savings account and checking account
Don’t use your main account for your savings. Set up your savings account at a different bank than your main account to reduce the temptation of pulling out your savings every so often because they are easily accessible.
It also takes two business days to transfer money so in case of an emergency, you can’t easily move your savings making you have some savings in your main account too.
You will only access your savings account only when extremely necessary.
This is one of the money saving tips I learnt from my grandparents at a very young age.
11. Nickname your savings account
Have your savings account saved under a specific nickname in every place you can access it from.
It could be, “December 18th trip” or something bad as losing your job so you are not easily tempted to get a chunk of it every time.
You’re less likely to keep skimming a little off of the savings if you are reminded of your plans.
12. Cash diet
Cash diets are diets of the financial world and re not often. You set a time period like a month when you will not be attending to your cravings, whatever they may be.
You curb all the unnecessary wants for a short while just to save up enough or get back on track on your finances.
Less money disappears from your wallet and more accumulates on your savings account.
You first consider your cash flow and minus out your bills to know how deep in the cash diet you can venture.
13. Delayed gratification
Plan strategically on the larger purchases because they consume a lot.
Accumulate items slowly unless you really need them and delay their purchases by waiting on ways to save from these larger purchases e.g. electronics that are cheaper on black Fridays, wait for seasons when travel prices are decreased.
14. New vs. thrifts.
You can cut off products like clothes for a while till you’re back on track financially with savings. Thrifts have discounts all the time so it is much preferable.
The best part about this is you can also make money out of it by buying thrifts cheaply and at discounts and selling them online at higher prices.
15. Reduce your subscriptions
These small monthly charges from subscriptions can be a lot especially if they have accumulated.
You should try ditching the unnecessary subscriptions, not regularly used subscriptions, or those that provide services almost alike e.g. Netflix and Hulu. Subscriptions are popular among teenagers and youths who want to keep up with everything and so can save up a lot if reduced.
Before you spend your money to pay for that fancy furniture or to get something lightly damaged fixed, first consider doing it yourself!
You could always ask your friends to help as you all spend time together if you can’t deal with some of the heavy work.
Again, you could try borrowing your friends if they have the materials instead of buying them.
17. Compound interest
Albert Einstein once said that compound interest is ‘the eighth wonder of the world.’
Time is the most important asset young adults have on their side and if you already have a paycheck from either a job or investing on your skills and talents, take advantage of compound interest.
Take out a small percentage of your income and commit to it early enough.
Conclusion: 17 Best Money Saving Tips for Young Adults
Stop the paycheck to paycheck cycle of living and make a zero budget before the month begins and stay true to your budget by adhering to the previous steps
It doesn’t really matter how you much money you make, but how you spend and save the money you make.
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