Since 64% of US workers are expected to retire with less than $10,000, it’s important that you do what you can to save money. After all, you don’t want to wind up too low on cash to live a fulfilling life in the future.
Luckily, beginning to save early is completely possible for most Millennials and Gen Z folks. Read on to learn some budgeting tips for young adults so that you can save money in 2021.
1. Use Budgeting Apps
Since most young adults have their Smartphones on them the majority of the time, keeping track of your budget via apps is easier than ever before. There are iOS and Android applications that will notify you when bills are due, when your paycheck has been processed, and when your bank account gets to a certain number.
Some apps you might want to check out include PocketGuard, Wally, and GoodBudget. Each serves a different function to prevent you from overspending and making late payments.
2. Check All Accounts Daily
While checking your bank account isn’t necessarily a fun thing to do, it’s essential that you know how much you have at all times. This ensures that you won’t run out of money that you need to pay rent or overdraw from your checking account (and incur hefty fees).
Create a schedule and check your account at a certain time each day. One of the best times to do this is immediately after waking up. This will let you know how much you have as you head into the new day.
3. Begin a Retirement Plan
Retirement may seem far off, but if you begin to save young, you won’t have any problem affording to do so later. This can eliminate a lot of stress.
You can create check stubs easily and see how much you are making over time. This will give you an idea of how much you can afford to set aside. Most smart people begin putting 5-10% of their earnings away into a retirement fund so that they can accumulate enough money to travel and live somewhere nice in their golden years.
4. Set Aside ‘Fun’ Money
One of the best ways that you can budget is by putting aside entertainment money. Many people think that budgeting means that they can’t have any fun, but this isn’t the case at all.
Instead, you simply need to set aside funds specifically for going out with friends, seeing movies, and purchasing books and games. Keeping these funds aside ensures that you will not dip into your grocery money or rent check to get extra entertainment money.
5. Spend Cash When Possible
You do need to use a credit card to build credit, but paying for things in cash lets you know where exactly your money is being spent. Tell yourself that all grocery payments will be on a credit card but that everything else will be paid with cash. You’ll feel like you’re spending real money rather than just swiping a card and will be less likely to overspend.
Beyond Budgeting Tips for Young Adults
Now that you know some of the best budgeting tips for young adults, it’s time to make good money doing what you love. Check out the ‘business’ tab on our home page to learn how to succeed in your career. You’ll also get tips on how to start your own business if that’s something you’re interested in, so check it out.