Don't fall into a hole of debt as a young adult. Start making smart financial decisions and save money from the get-go. Here are some simple ways you can start saving money.
Start Budgeting
The most important thing you can do to save money is to start budgeting. Create a budget where you can lay out on paper how much you're making, how much you have to spend on necessities (rent, groceries, gas), and see how much is left. From what is left over, determine how much you should be saving per month. If you can save 25% of your paycheck, that's a great way to start an emergency fund. However, many people who are just starting out can't save that much, so just do what you can. Have a set amount of money per month for non-essentials and pleasure, such as eating out at nice restaurants, going to events, etc. By sticking to your budget, you won't fall into debt and you'll be saving at least a little bit of your income each month.
Make Smart Investments
It may seem difficult to start thinking about investing money when you don't have a ton to begin with, but you can start small and work your way up. Investing money will allow you to start making a passive income down the line, which means you'll be saving money without working any extra. You can make investments in the stock market, or by purchasing things that will save you money directly. For example, you could invest in solar panels which will end up saving you a ton of money down the line on utilities.
Pay Off Your DebtÂ
Many young adults are in debt, especially if they went to college and had to take out student loans. The key to not falling even deeper in the hole is by paying off your debt as fast as possible. This may mean you need to cut out some pleasure purchases such as a trip to Europe or even just not going out to dinner often. The faster you can pay off debt, the more money you'll save by not paying interest on your credit cards or student loans down the line.
