It isn’t easy for Millenials to start saving money when they become independent. Nearly two million Millenials have more debt than any other previous generation. On average, Millenials borrow around 30,000 dollars to pay for college. It can be even harder for single young adults who are budgeting and managing all of their debts and expenses on their own. Here are some budgeting tips for single Millenials.
Estimate Cash Flow
All great ideas start with a simple plan. The first step to reclaiming your finances is to come up with a budget. A budget is essentially a blueprint for all of your planned spending. How do builders plan a building before making it? The same applies to creating a new lifestyle. A budget starts by estimating your cash flow and available income. Try to be as realistic as possible; in fact it’s better to underestimate than overestimate. People often spend more than their lifestyle demands of them.
Breakdown Your Expenses
It’s crucial to analyze and breakdown your expenses. Start off by looking at your fixed expenses, here are a few examples
- Car Payments
- Loan Payments
- Parking Fees
- Cell Phone Carrier Bills
- Grooming Necessities
After that, look at your unnecessary expenses. Items such as:
- Eating Out
- Random Purchases
- Wireless Internet
- Applications or Programs
Eliminate Uneseccary Items
One of the final steps is to eliminate unnecessary expenses. Items like subscriptions, novelties, and eating out are ideal places to start. Of course, you do not need to live your life in a restricted manner forever. Cutting back on expenses is a beautiful way to get ahold of your budget.
Budgeting and working on your finances are complicated processes. These simple changes are an excellent way to start.