Simple Ways to Save Money: A Guide for Young Adults

Saving is a very important part of everyone’s life; however, it is especially vital for young adults. Without enough finances, it can be difficult to pay necessary bills such as rent, schooling, and groceries. It can be challenging; however, by remaining vigilant of your spending, it will become second nature to you.

The younger you are, the more money you can potentially save for your future. However, this being said, there is no right time to start saving. These tips below will help anyone, whether they be 18 or 50. Sound interesting? Then let’s get right into it.

Open a savings account

Chances are you already have some type of savings account. However, it can be extremely beneficial to open another with a high-interest rate. You can even choose not to be able to access it, which is excellent if you are finding yourself getting tempted.

If you already have an account to keep your savings in, make sure you are getting the best deal possible. You might have low rates and high fees or vice versa. It might even be worth switching banks and opening a new account.

Create a budget

One of the best ways to keep on top of your spending is to create a weekly and monthly budget. This way, you know exactly how much your expenses will cost, and how much you can afford to save.

While you might be tempted to start saving everything you have leftover at the end of the week, it’s vital that you give yourself some spending money. Otherwise, none of these tactics will work, and you’ll start getting bored very quickly.

The 50/30/20 rule is a popular option that many use. 50% of your income should go to expenses, 30% to spending, and 20% to savings. However, that doesn’t always work for everyone. Check out these money-saving apps if you need further help.

Cut down on electricity and water bills

One of the biggest expenses that young adults face is having to pay their own electricity and water bills. While it might be annoying, it is essential and a part of life that will always have to happen. To cut down on your electricity bill, try switching to LED lights, and only turn them on when needed. To lower your water bill, learn to take shorter showers, and switch to low-flow faucets. It might take a bit of getting used to, but it will be worth it in the end.

Share the load

Moving away from home, especially to a larger city, can be ridiculously expensive, and if you are going to college or starting a traineeship, you may not have the best income. If you find that you are in this situation, it might be beneficial to consider renting with another person or a group of individuals. You can share the cost of expenses and save more money in the process.

Get rid of the credit cards

Credit cards are tempting. They allow you to spend whatever you want, and you don’t have to worry about the consequences straight away. However, it’s easy to start using them for everything, and forgetting how much you actually owe.

If you are struggling with payments, it’s time to get rid of the credit cards altogether. Stick to debit or cash, so you aren’t accumulating any more debt.

Avoid big brand items

When you go shopping, it’s easy to get drawn into purchasing the big brand items. These are often placed at eye level, and we choose them because they are easy to recognize. However, they are often more expensive than store brand items, and most of the time, they are even made of the same ingredients. It’s a simple switch that can make a big difference.

Utilize public transport

Last on the list, owning a car is another significant expense in a young adult’s life. Not only do you have to pay for registration and insurance, but fuel is also getting more and more expensive. To save some cash, try and utilize public transport where possible. You might even consider getting a bicycle or walking every once in a while.

And that’s it! By following these different steps, you will be able to start saving straight away. The amount of your savings will ultimately depend on your income and overall cost of your expenses; however, you still should be able to notice a significant difference. Just remember to stick to it, and if you are having trouble, seek the help of a financial advisor. Good luck!

This article does not necessarily reflect the opinions of the editors or management of EconoTimes