Are you thinking of having a place of your own? There must be a balance between freedom and responsibility to do so. Although you are in full control of your household, being conscious of your spending habits is still essential. Here are some effective ways to do so.
Create a Budget and Stick To It
A budget helps you to know how much you need to pay for bills and what you have left for yourself. Figure out your income and then subtract your monthly expenses from that.
These are the common expenses you need to consider when living independently:
- Rent: The amount paid for living in a house or apartment
- Utilities: Includes electricity, gas, water, and garbage collection
- Car: Owning a car doesn’t just involve paying for gas and insurance. You must also allot money for maintenance fees that aren’t covered by insurance, registration fees, and smog checks.
- Food: You can no longer rely on your parents to do your grocery runs for you. You need to list down the food items you really eat. How much do you consume without the risk of spoilage? Check if some items are not necessary and can be removed from the budget, like steak or junk food.
- Phone: Is your mobile phone prepaid or on subscription? If you want you to have landline as well, you must pay the provider to set-up the jack and phone line.
- Miscellaneous: Items that are not mentioned above, like clothes and leisure.
There are easy to use templates you can download online to help you monitor your budget. In this way you’ll see if you’re already spending beyond the amount you allocated for a certain expense.
Stay on Track with Your Bills
You don’t have your parents, roommate, or partner to hold you accountable on your spending habits. Download an app that can help you keep track of payday and due dates. If you receive your bills via mail, designate a spot on your counter or table where you’ll place them. This will ensure that you won’t miss any due date.
Save up for the Rainy Days
It’s hard to save money when your expenses already consume a huge portion of your salary. Save up for emergencies like the hospitalization of a family member. Be ready to have at least six months’ worth of savings in your bank account. This will help you get by when you get sick or lose your job.
Spend Less on Non-essentials
Many people tend to spend lavishly on leisure, such as shopping, ordering food, or dining out. Having the “I deserve this” mindset as part of your spending habits will have a negative impact on your finances.
If you’re running low on cash, cut back on non-essential expenses so you can spend on crucial ones. Try to live below your means. You don’t need to keep up with the trends like owning the latest gadgets.
Find Fun Activities to Do for Free
Spending time with friends and family is important. However, you need to be practical in your choice of activities if you want to stay on budget. There are activities you can do for free, such as:
- Game night
- Spending time at the park
- Hiking
- Beach day
- Home movie night
Learn to Cook for Yourself
Delivery apps like Doordash are helpful especially on days when your job demands a lot from you. Unfortunately, convenience comes with a price and will negatively impact your budget.
Get rid of your delivery apps and practice cooking meals for yourself. It will help you improve your diet and save money as well. Although it will take more time and effort, there are ways to make things easier:
- Create a meal plan: It can be for a week, a month, depending on your preference. Choose meals that you love and can prepare easily. In this way you don’t have to think too much about what to eat for the day, and you can just end up ordering online.
- Purchase cooking tools that help save time: Some tried and tested tools are rice cooker, air fryer, and instant pots.
- Commit to having a regular grocery shopping schedule: Make a list of the things you need to avoid getting items off the rack on a whim.
Look for an Additional Source of Income
Do you think your current salary can’t support your plan of living independently? Try to find an additional source of income to increase the money for your budget every month.
Work on Your Spending Habits With Top Priority Financial Solutions
Living independently can be challenging if you’re used to always coming home to other people like your family. You may feel nervous, but it can be empowering as well.
Do you feel you’re not financially prepared to take this huge step? We can help. Top Priority Financial Solutions can help you get back on track through credit restoration, debt settlement, and more. Book an appointment with us today.
