Articles

How Newly Independent Young Adults Can Save Money

Budgeting For Young Adults

October 6th, 2021   |   Updated on October 11th, 2021

When you’re just getting your start, money’s liable to seem perpetually tight. Even if you’re able to hit the ground running with a good degree and solid employment prospects, there’s no guarantee that you’ll find the dream job in your chosen field in a timely manner.

Furthermore, even if you do, building up your savings takes time – so unless you already have a small fortune in the bank, things will probably be rough for a while.

Luckily, saving money as a newly independent adult isn’t quite as difficult as some of us make it look – provided you have the right tips at your disposal.

Return To The Nest For A While

If you’re unable to find a decent-paying job right out of college, it may be a good idea to move back home for a while.

With cost of living on the rise in virtually every part of the country, temporarily returning to the nest has become an increasingly popular option for young adults who want to conserve their financial resources.

Provided you have a decent relationship with your parents, moving back into your childhood home shouldn’t be a terribly painful experience.

Should you go this route, it helps to have a long-term plan. This can be particularly helpful if your folks aren’t keen on the idea of this stay being indefinite.

Plus, if they see that you have a plan to save money in place, they’re liable to cut you a fair amount of slack. However, keep in mind that this goes both ways.

To ensure the maximum amount of leniency from your parents, take care to help out around the house whenever possible and make small financial contributions every now and then.

Even if the aforementioned plan doesn’t work out, most parents will be a lot more forgiving if children show that they’re trying.

Live With Roommates

Depending on where you’re based, a no-frills apartment is liable to prove unaffordable for someone just getting their start. This is particularly true in the case of large cities, like NYC, Los Angeles and San Francisco.

So, if you intend to reside in a major metropolitan area but are unable to afford that area’s cost of living, consider seeking out roommates.

You may not like the idea of cohabitating with people you don’t know, but depending on your current financial situation, you may not have much choice.

When searching for the right roommates, limit your options to people with jobs and/or lots of money in savings. The last thing you want is a roommate who leaves you high and dry come the first of the month.

Sure, there’s always a risk you’ll wind up with a dud, but doing your homework throughout the selection process can dramatically reduce the chances of this coming to pass.

Seek Out Free Forms Of Entertainment

Many young adult pastimes can leave a hole in your finances. For example, if you’re fond of club hopping, going to concerts or attending large-scale events, you’re unlikely to have anything left to put into savings at the end of the month.

With this in mind, you should make an effort to seek out free forms of entertainment. For example, if you reside in a large city, you’re likely to have a plethora of parks, museums and local festivals at your disposal year-round.

Furthermore, when it comes to home-based entertainment, look for free streaming services, cancel subscriptions to services you rarely – if ever – use and sign up for a local library card.

Make Smart Investments

While it’s generally not a good idea to sink tons of money into the market, making a few small but dependable investments can provide you with a consistent source of extra cash.

Furthermore, precious metals can be a reliable investment for people who value practicality. If this represents uncharted territory, you may want to start by purchasing a 10 oz silver bar.

It’s easy to see why so many young adults experience financial hardship. For one thing, cost of living continues to get progressively higher as wages continue to stagnate.

Furthermore, since young adults are just getting established, they generally don’t have much in the way of savings to fall back on. Fortunately, conserving your financial resources as a young adult is much easier than you may think.

While you’re still bound to face challenges on the money front, the previously discussed measures can make getting by far less cumbersome.