We go through the teen phases. Awkward gestures, dark eyeliner, experimental music, videogaming until the early hours and laughing at our friend’s latest antics – it’s all part of growing up. We resent those long days at school, always wondering, when will I ever need Pythagoras theorem again? Why care about a Civil War that happened two centuries ago?
Yet, when it comes to the moment where there is no school and no college, things get real. We’re thrown in at the deep end of the real world and have to know what to do to survive in an environment that never slows down. If this sounds all too familiar and you’ve just moved away from home for the first time, managing your finances is most likely one of your biggest obstacles. If so, this post will offer some money saving guidance.
The 30 Percent Rule
Safety and working towards financial security are essential factors when moving out on your own for the first time. The starting point for many is renting and there is a classic rule that can ensure that you stay afloat if you do decide to rent. By putting aside 30% of your monthly salary towards housing costs that includes rent and utilities, you can afford a decent pad and still have a significant amount of money to live off. This rule is a great indicator when it comes to finding a place to rent within your budget.
Live Well for Less
Everyone has different backgrounds, finances and approaches to life. However, there’s one thing that binds us and that is our desire to make the most of life. Nonetheless, this transition period of going it alone requires some frugality. But that doesn’t mean hovering around tealights and having instant noodles for dinner every night. It simply means we have to live with simplicity until we have landed on our feet. Instead of costly nights out in posh bars, why not invite your friends around for a night in? It can be as easy as setting a theme like Mexican and before you know it, everyone is scoffing fajitas, buzzing off tequila and calling mariachi band at Alexa. Instead of breaking the bank, you’ll spend twenty bucks and still have an amazing time.
Take on a Side Hustle
There’s a wealth of opportunity out there for those that are looking to make some extra cash. Think about what you can do in your local area to add to your weekly wage. Is there a possibility of doing extra hours in your job? Maybe you could drive for Uber in the evenings? Or perhaps you could set up a Facebook page and offer a dog walking service to your neighbors? Be open to opportunities and you may just find a side hustle that will help you to cover your living expenses and grow your savings. This savings fund can go towards your first property, starting a family, travelling or the monies can be put aside for emergencies. Whatever you decide to do with your extra cash, developing good saving habits early on could be the key to achieving financial independence later on in life.