Many young people all around the world get their first real job after receiving their undergraduate degree. Stepping into this new phase of life can be overwhelming. Managing their finances also turns out to be a challenge for many.
To help you navigate your way through the world of expenses and incomes, here are some tips which are likely to help you manage your finances.
1. Don’t move into an expensive house
Renting a big flat in a good neighborhood is an expensive mistake that a lot of young professionals end up making. Realistically, if you do not work from home, you may spend only a few waking hours in your flat during the weekdays.
Rent usually takes up a big chunk of your income and is a monthly expenditure rather than a one-time cost. Instead, get a house near your workplace which will save you on transportation costs.
2. Enjoy cheap thrills
Entertainment is necessary for peace of mind but it can be a tad expensive. Luckily, most places offer free or low-cost activities. For instance, instead of hanging out with your friends in a cafe, arrange a visit to a local park for a picnic. Art exhibitions and museums are also wonderful places to visit with your loved ones.
3. Share and borrow instead of buying
Instead of purchasing books, get a library membership card and rent books. Oftentimes, you don’t really re-read books, so there is little point in spending a hefty amount on buying them and cluttering your flat. You can always request your local library to get the books from the to-be-read list.
Cancel subscriptions, such as Netflix subscription, that you barely use and borrow it from your friend when you really need them. In this way, you’re not committing to a monthly or annual expense.
4. Maintain a budget
Keeping a track of your expenses is a must! You may not realise when you’ve run out of money and are struggling to pay the bills. The small expenditures once added aren’t so small anymore.
Using budgeting apps or simply an Excel spreadsheet helps tons. Here is an article of ours focusing on five of our favorite budgeting apps.
Living a frugal life and not being attracted to lucrative credit cards are also very important. You may also have some tips for managing finances so make sure to share them with us.