5 Simple Ways to Save Money as a Young Professional
This is the moment you’ve been waiting for. You’ve finally obtained your college degree, landed your dream job (or a job), and you’re officially part of the real world. Your high school teachers may have told you college was the real world, but now you’ve realized that is definitely not the case. As a young professional, you have much more to do than you did in high school or college. You have to worry about balancing your budget and creating an ample savings account. After all, your parents won’t always be there to save you on a rainy day. Creating good saving habits now will be immensely beneficial for your future. Here are some simple ways to save money on a daily basis.
Take Your Lunch to Work
This may seem like a daunting task. However, you will be surprised how much money you save by taking your lunch to work instead of eating out every day. Although it can be fun to go out with your co-workers for lunch, the weekly tab can be stressful on your wallet. For example, let’s say you eat a pretty modest lunch even at a chain like Chili’s. You will probably spend at least $10-$12 per meal. If you work 5 days a week, that adds up to $50-60! Instead, you could probably spend $15-$20 on a week’s supply of groceries. If you make yourself a sandwich every day, you will be saving close to $120 a month! Plus, you’ll be saving your waistline from extraneous calories. That extra $120 could be useful if your car needs repair on a random day!
Investing 101: Diversify your Polio
So, here is a way to increase your available cash flow: Investing a part of your salary. Of course, you need to decide how much you’d like to invest. Also, if you have any of those really successful friends in investment banking, now may be the time to invite them over for dinner or drinks. Here is a link that can help you get started, with basic tips on investing.
Be a Sensible Socialite
It can be really exciting to be a salaried employee. You always have a cash flow. Plus, every time you get a paycheck, you feel like you are being rewarded for your hard work! However, with great power comes great responsibility. It can be easy to spend your money on extravagant nights out on the town. It is important to spend your money wisely, and in moderation. Rather than spending $100 at a bar, invite your friends over to have drinks and hors d’oeuvres. Make it a potluck, where every person brings some sort of alcohol or appetizer. Even if you want to go out afterwards, you probably won’t spend even half the same amount as you would have without the pre-party! Plus, the pre-party will be fun, personal, and cheaper!
Get Rid of Your Credit Cards
Even rappers who make $50 million a year have become destitute after putting too many expenses on their credit cards. There’s no class in overspending. If you think you are likely to spend more than the available supply in your account, leave your credit cards at home! Or better yet, don’t have one. You may need one for emergencies, but if it is not necessary, just stick to using your debit card!
Think Before You Buy
So, practicing restraint may not be one of your strong suits. It is definitely not one of mine. However, exercising your critical thinking skills before making a purchase can help you save a lot of money. Every time you are considering a big purchase, write out a pros and cons list. How badly do you need the item? How often will you use it? Take a look at every store/outlet offering the item to find the best price. The more time you spend thinking about it, the less likely you are to buy unnecessary items!