When you are in your twenties and thirties, and you live an active social life, you can end up putting a dent in your wallet. If you live in a big city or plan to relocate to one, your expenses can grow manifold.
But you can learn some financial tips to help you save money even with the mounting expenses. Here’s how you can keep a tight rein on your expenses.
Spend Much Much Less Than You Earn
One of the most oft- pieces of financial advice is to live frugally. Although it may seem simple, many people have difficulty following it, especially those living in a rented apartment in an expensive city. The only way you can save money is when you live much below your means. Your biggest concern will be indeed paying off the rent. Ideally, it is best if you pay 30% or less of your monthly gross income.
If you are spending too much on your housing costs, consider moving into a more affordable home. You could also consider downsizing your current home and change it into a smaller space. In Washington, D.C., the average rent is around $2,227. But just a few miles away, say 8.3 miles away from the city to Alexandria, VA. The rent is just $1,765 on average. So, you end up saving $462 or $5,544 a year. This varies from one city to another. But just making few sacrifices along your rental journey can help you save a fortune.
Amp Up Your Monthly Income
After selecting the right place, your next step will certainly be to increase your current income. Your current paycheck just about covers the bare minimum expenses and the miscellaneous. To save big and lead a better lifestyle, consider taking little steps. For instance, you can try making the down payment or building an emergency fund to build financial stability.
So, there are some ways to increase your income. You can try getting yourself a part-time weekend job or consider investing your time in a side job. You can drive a try for Lyft or Uber, try and deliver food, work as a babysitter, or a dog walker. There are so many things that you can try that may not be too taxing for you, and you may end up saving some big bucks. So, if you can pay your rent with the money you earn from your weekend jobs, you will be able to save enough for your future.
Save on Transportation Costs
Ditch the car if you are trying to save big money. Especially if you live in an expensive city like New York or Chicago, you can save money by taking public transport. The average cost of owning a car is around $9,000 a year!
You can try other stuff, such as walking or even ride-sharing. You may feel you are not saving enough here. But, you know what, every penny counts here, so a penny saved is money earned.
Fit Your Belongings According to Your Apartment
Although the idea of moving into a big apartment sounds great, then it may not turn out to be a particularly great idea in the long run. Sometimes you end up paying more for the rooms you don’t even need. So, cut down your belongings to fit into your new apartment. Even if it’s tiny, you are saving money, and that counts.
Did you know each year, Americans waste $24 billion in storage unit rental costs? And according to Forbes, they end up occupying 2.3 billion square feet of these units to store their use and not so useful stuff.
Reduce Your Spending on Shopping
Living in a big city has its expenses and your daily expenses can go up too. So, it is important to keep a tight rein on your finances as you monitor your spending ways, and you need to take a good look at the way you handle your budgeting.
Budgeting can help you evaluate your spending and know exactly how you spend on food, entertainment, and more.
Budgeting tools and apps are great ways to set up your budgets and check your spending ways. This is precisely how you can stay in an expensive city, rent an apartment, and spend on things you want to spend.