Twenty-Something and Strapped For Cash

It’s an unfortunate fact of life. After college graduation, many twenty-somethings just don’t have enough cash. Student loans, car payments, monthly rent and grocery bills can quickly deplete a wallet or bank account. Still, there is no need to declare bankruptcy or go into massive credit card debt. By utilizing some savvy, money-saving strategies, nearly everyone can successfully manage a budget, no matter how small.
• Don’t spend money you don’t have. While it might seem easy to use credit cards to pay for necessities like clothing or groceries, high interest rates can double or triple the initial cost of a few cans of tuna. The essential lesson here is to not spend money you don’t actually have. Avoid using credit cards as much as possible, unless you are sure that you can pay the bill the next month.
• Keep track of your expenses. It has been shown that dieters who keep track of their daily food intake lose twice as much weight as those who do not. Why? If you are forced to write down a splurge, you are less likely to do it. The same applies to finances. If you must record every dollar that leaves your pocket, you are less likely to purchase things you don’t really need.
• Take advantage of store coupons and weekly deals. Sign up for your grocery store’s weekly flyer. Watch for discounts or deals. Just make sure that you buy only the items you need. Do not buy something that you are unlikely to use simply because it is less expensive.
• Reduce your heating or air conditioning bills. During the summer, keep your thermostat at 75 degrees. During the winter, keeping your home or apartment’s temperature set at 63 degrees can significantly lower your gas, heating and air conditioning bills.
• Pay back your loans as much and as quickly as you can. Do not defer your student loan or credit card payments. The interest rate will only continue to increase. If your accounts are in good standing, you can often call your lender and sign up for a lower rate. Some companies also offer a lowered interest rate if you enroll in automatic draft.
• Eat out less often. Americans spend 40% of their food bills on restaurants. By dining out one less time per week, you can save up to $60, the average cost of a cell phone bill. Bring your lunch to work instead of ordering pizza every day.
• Purchase a car that is fuel efficient. A van or SUV might look good, but if you’re young, single and in your 20s, you probably don’t need it. Gas prices are high, and buying a smaller, more fuel-efficient car will save you more cash in the long run.
• Take advantage of garage sales and thrift stores. Many of the items that these types of shops contain are almost new and unused. You can buy clothes, dishes and furniture for up to 75% off the original price.
Learning to spend wisely is a habit that takes planning and discipline. Even though you may have to suffer through low-income jobs and increasing debt in your 20s, you can still become financially stable and responsible.