So, you’ve just moved out of your home and are living independently for the first time. Or maybe you’re planning an early retirement.
Given how living costs are on the rise, it may seem difficult, and at the moment, impossible, but don’t despair. We’re here to help.
We understand that you don’t have the same economic advantages as the previous few generations. You don’t even have access to the same job market, given how unemployment is rising.
Moreover, rampant, unchecked market exploitation seems to make things more stressful.
But, despite the odds, you can still streamline your finances. These tips will help you make the best of your circumstances.
If you follow these, you can even save money for rainy days.
This may come off as an odd piece of advice, but what better way to improve your money matters than becoming an expert yourself? You can choose to study an undergrad program or enroll in a postgrad such as a master’s of business administration with a concentration n finance.
There are plenty of benefits of a degree in MBA finance for young adults. For example, you learn the ability to think of your finances as an entire process, rather than just complex numbers you can’t make sense of.
You’ll be able to plan better, budget your lifestyle, and calculate returns on investments. You can even pursue a career in this niche to earn big bucks and solve most if not all of your financial woes.
In short, getting an education in finance will help you better use all the other tips mentioned below. The internet has made it more straightforward to acquire education now.
Assess your finances
You can’t predict how things will go unless you map your current situation. This part in the process is essential, and you may need to come back to this time and time again. It wouldn’t be wrong to classify this as the foundation of financial management.
So, the first step here is to understand how much money you have. Be very realistic about this because you may have liabilities ahead. Once you have clarity on this matter, you can evaluate how to proceed further with your expenses. A good roadmap is one with absolute clarity on the foundations.
Review your bank balance and any physical cash you have. If you maintain a physical or a digital log, look at it, and see if you have any cash incoming. You may have lent someone some money, and it may be time to ask them to return it.
Once you have clarity of your financial situation, you can now begin to look at your expenditures. This step is not merely about understanding where your money is going, but it’s also about considering the ‘why’ of this equation.
If you’re struggling financially, do you need that Netflix subscription? Can you wait to binge-watch that new show until you’re in a better financial situation to afford it? Can you watch new movies or shows with your friends on movie nights?
These are the questions you need to ask yourself because there is a difference between needs and wants. You can adjust your wants by looking around the picture. There are many solutions on the sidelines. You just need to develop the right mindset for it, and things may seem plausible.
Cut unnecessary expenditures
Once you have an apt assessment of your finances and you know where your money is going, you have to make some hard decisions to bring things under control.
Your unnecessary expenditures could include a subscription to unused streaming services, magazines, and even news portals you barely have any time to watch or read. So, why do you still want to pay for things you aren’t using? Quite simple, isn’t it?
So, start by slashing these expenditures, and you’ll be surprised at how much money you can save by not giving in to your impulses. Most of us don’t understand why we pay for services we don’t use or even pay for things when we can find free alternatives.
Are you one of those people who say ‘Yes’ immediately to any proposition of going out for lunch or dinner? As they say, there’s no free lunch (pun intended). You’re trying to save money, so why would you blow your money at cafes and restaurants now and then? Think about it.
Food consumes a lot of our money, and this is one area where you should try to save. Try to eat at home most of the time.
If you live with your family, there’s already going to be food at home. If you live alone, you need to learn to cook. There are plenty of only guides aimed at helping you learn the art.
As for coffee, there are many ways to get the same experience at home. All you need is the right ingredients, some patience, and skill. You can learn the art of coffee-making by practicing.
All the information on that is available online. Besides, there are many good YouTube tutorials to help you make the perfect cup of coffee.
Find a side-gig
The coronavirus pandemic led to rampant unemployment across the globe, but it also paved the way for remote work. This means you don’t have to depend on your job as your primary source of income.
If you have a particular skill to offer, there’s a whole market for freelancers on Fiverr and Upwork. You can use these platforms to find the right gigs for yourself. Some of these pay well. Or you can even start working as a content writer remotely. Many companies now outsource these jobs to freelancers.
You can use this extra income to supplement your finances and save for rainy days. You can never anticipate bad times, so it’s always good to have some savings.
If you’ve already saved some amount, you can invest it into various opportunities that provide good ROI. The stock market could be a good place for investment.
While these tips don’t cover every aspect of personal finance management, they can be helpful in your daily life. All you need is consistency, and you can do better than you are doing already.
Just make you develop the right mindset for this. Financial management is a valuable skill everyone must possess, especially in these harsh economic circumstances.
Therefore, if you see someone else doing it better, tell yourself that with a bit of patience and practice, you can do it too.