If you are in your 20’s or early 30’s there are some things you can do to save some extra money. Looking for loose change in your car is really not an answer nor is cutting minor items out of what is most likely an already tight budget. So what do you need to do? Well, there are many approaches one can take but here and a few suggestions that can make saving a little easier.
The first thing that someone needs to do that is early on in their career is participate in their company’s 401(k) plan. This is a way to save for retirement in an automatic way as the funds are taken from your paycheck before you even see the money. That way you really will not miss what you never had in your account in the first place. And from a recent study I read about three-quarters of companies that have such plans offer a company match. That means you get an automatic return on what you put in by your company matching a portion of what you contribute. No matter where you are in your career always take advantage of a company-sponsored 401(k) plan.
Second, it is a good idea to set up a portion of your paycheck to be automatically deposited into a separate savings account of some sort. This much like the 401(k) will allow you to save without having to think about it and without really missing the amount you are setting aside. Just make sure that you do not direct more to your savings account than you can afford so you will avoid any overdraft fees that could happen if you become overdrawn.
When it comes to insurance, this is an area you do not want to skimp on no matter what. Consider health insurance and what could happen in the event you were not covered. Besides now being a law that everyone has health insurance it just makes good sense. A few years ago I had surgery and was in the hospital for about a week and a half. Just that brief period would have cost me over six figures had I not had health insurance. Automobile insurance is another insurance that is required by law in most states and can save you a lot of money if something bad were to happen. If you hit someone else’s car would you have the money to pay for a potentially $30,000 plus replacement? I know I would have issues paying such an expense when my insurance will cover it for me. And finally, an insurance that is very inexpensive but can save you thousands. Renters insurance covers your belongings in your rented residence in the event of theft or disaster. Most renter’s insurance policies run less than $30 a month when combined with another policy such as your automobile policy.
Now a lot of people think credit cards are a bad idea and something to be avoided. But if used wisely and combined with good rewards programs they can and do make sense. Many offer good travel incentives, and others offer cash back on purchases made. But these only make sense if you pay the credit card off in full each month to avoid high-interest payments.
Another way to save some money is to delay large purchases. The theory behind this is not aimed at cars or houses as those I am guessing you are shopping around and looking for the best deal you can get anyway. What I am talking about is along the lines of say I needed a new suit. Should I just go to the store and buy the first one I like? If I have the cash, then maybe. But if I it is something I saved up for I may want to reconsider buying on impulse and you should wait a day or so to make sure that is indeed what you want. By waiting you can think of alternatives to buying new or use something you already have. By waiting you can save some serious money.
Then you can always sell stuff that you own that you may not need. This can be books that you have read and do not plan on reading again. Or in many instances, this can be clothes that you have not worn in months. Have an old TV sell it on Craigslist. Old clothes, try eBay or one of the many apps that are designed to sell used clothes. They can generate some good money for you if you put a little effort into selling your old items.
If you are like many younger graduates, you may have a significant amount of student loan debts. Here the key is to try and refinance them into a single lower payment. But before you do this make sure you understand what you are doing and how it may affect your loan repayments or terms.
Set achievable goals that you can obtain and reach. This needs to be a combination of short and long term goals. The short term goals will allow you to get instant satisfaction of achieving your goal. Long term goals will obviously take longer, but after reaching some smaller short term goals, the long term ones will seem easier.
These are just some ideas on how to save some money, but it is not an all-inclusive list by any means. This can serve as a starting point for you, and you can expand on these tactics with some creativity and thought on your part.
If you need any additional help or assistance, do not hesitate to contact me.
