Top Budgeting Tips for Young Professionals

As a young professional, being able to save up a large amount of money for a house deposit or to pay off your student loans can seem like an unachievable dream. This is especially true now, with the cost of living rising much more quickly than wages and the COVID-19 pandemic having hit certain industries hard. For many working women, it’s enough of a challenge just to concentrate on paying rent, bills, childcare, and other key expenditures every month. However, it’s important for us to start thinking on a more long-term scale and working towards a stable financial future. That can sound daunting, so here are some top tips to help you out.

Analyze your current spending habits

The first step to take is to track how you are currently spending your money. Look at every transaction you make (yes, every one!), including subscription services such as Netflix or Amazon Prime. This’ll enable you to work out where you can make some cutbacks and savings. If anything about your spending habits shocks you, that’s a good place to start making changes!

Avoid using credit cards

It’s very easy to overspend when you use credit cards, so it’s best to steer clear of them when you can and use debit cards instead. That way, you’re only spending money you actually have. Of course, there might be times when you need to make a big purchase or an emergency arises, in which case using credit cards or taking out loans in San Diego may be your best choice – but try to keep this to a minimum.

Start saving

As well as spending less, you want to be saving more. One helpful tactic is to set up a direct debit that automatically transfers a certain amount of money from your paycheck into a savings account. Over time, this can add up to a healthy chunk of cash without you even noticing. It’s also never too early to start thinking about your pension. Women tend to be at a disadvantage in this area, so it’s especially important for us to plan ahead and be proactive with saving for retirement.

Shop sensibly

There are a few changes you can make to the way that you shop in order to reduce impulse buying and overspending. For example:

• Take a list when you go to the grocery store and do your best to stick to it – so don’t go food shopping when you’re hungry!
• Cook lunch at home to bring to work instead of buying it out
• Wait a day before making any big purchases, to give you time to consider whether it’s something that you genuinely need (and shop around for the cheapest price)
• Browse thrift stores for second-hand clothes and books instead of always buying items new
• Save on gym memberships by exercising at home or outside (if you live in an area where it’s safe to do so)
• Turn off lights and other appliances when not in use to save on electric bills
• Brew coffee at home instead of stopping in at Starbucks on the way to the office

How many more can you come up with?