Living alone is an important aspect of life that everyone love to experience but it can come with a lot of expenses.
It also involves finance management to a large extent.
How do you merge these two necessities? Do you go broke easily and you think it’s because you live alone?
This post is here to show you how to manage your finances while living alone.
1. Save, Send, Invest then Spend
As with all other savings tips, even while living alone, you should save first. Afterward, you can send some money back home if they need the cash if you’re saddled with some responsibility. Even in case your family is well off and does not need your money, for now, you can still send it and tell them to invest it for you. This way you save here, as well as save it back home. These dual savings should be periodically invested and taken off your mind.
2. Reduce Eating Out
Living alone would mean you also have to manage your own food and the simplest option a lot of young professionals take is to order restaurant food or go out and eat. Instead of visiting the restaurants all the time, learn some basic cooking and prepare food yourself.
Even if you have to eat out, try inexpensive restaurant that maintains high hygiene measures. This will again significantly reduce the cash flow towards eating.
3. Save On Daily Transportation
Firstly, try to make sure you stay close to your workplace as this will greatly reduce your transport expenses to a great extent and in turn, save money too. Also, consider taking shorter routes and public transport where necessary.If you can afford a car, even better. This will save a great deal on your day to day expenses on cabs like Uber and Bolt.
4. Control Entertainment Expenses
When you are alone, it is natural to feel bored and need to go out and get a break from your monotonous life. This often leads to partying, movies at the cinema, impulse shopping, and many other fun activities. All these activities are expensive.
Enjoy while you should and you can, but don’t go overboard by having a concrete plan. Also, movies can be seen on rented DVD as well. If you have to catch up on the latest blockbuster, go on a weekday or early morning on a weekend, tickets are much cheaper then and you can save some money this way too.
5. Curb Luxuries
Branded clothes, designer accessories, designer shoes and all are luxuries you don’t need for now. If you can really afford them after you have met your monthly expenses and saved for the month, it’s fine.
After deducting your monthly expenses and savings, the leftover money (only after savings) should be used once in a while to indulge in such luxuries. You are alone, single, need to save for the future; remember that and follow it.
6.Buy Affordable Tariff Plans
Go for prepaid plans and since you live alone, get affordable data on your phone. The Internet is one thing we need and can’t live without but you can curb the expenses.
Also if you have multiple devices at home opt for a Wi-Fi internet as you would then be able to use one connection to all devices, however, if you travel a lot get a USB internet dongle. You can have one of them and not all, it’s either Wi-Fi, USB dongle or 3G.
7. Don’t Waste Money on Groceries
Although provisions and groceries are necessities you can’t do without, you don’t have to get all of them, you can get a few and plan to buy when there’s a promo on a particular product. Promos save a lot of money and you can save well too.