10 Money-Saving Tips for Singles

 It’s never a bad time to start saving money. However, single people need to manage their budget on only one income. Since there is no one else to rely on, every saved dollar counts. Here are 10 money-saving tips for singles:

  1. Start paying off debt

Large amounts of debt can put you in a financial stranglehold. Sure, everyone would like to be free from debt, but just wishing it away won’t make your loans disappear. You need to actively work on paying off your debt, and here is how to make it happen. Create payment goals and stick to them. Figure out which debts are the smallest and which you can pay off the fastest. Focus on getting rid of those debts first. You’ll feel a sense of liberation once you start getting rid of your debts one by one.

2. Plan your monthly expenses

You’ve undoubtedly heard the phrase “stick to a budget”. However, to do that, you first need to do some math. Make two columns and put your income on one side. Put rent, utilities, food, and all the other expenses on the other side. Realistically, for most people, rent is usually the most significant expense. You can consider moving to reduce your monthly costs. It’s pretty easy to find a cheap city to live in – there are many affordable West Coast cities. Now you need to monitor and keep track of how much you are spending. If you were to ask your friends to break down their weekly budget, they probably couldn’t give you an accurate answer.

Take your phone and write down every single expense, even for leisure activities, drinks, brunches and coffees. If you aren’t sure, just make a note every time you spend money and add it up at the end of the month to get a realistic picture. Without knowing exactly how much you are spending, it will be easy to go over budget.

3. Realize what your biggest luxuries are

This will probably be a hard pill to swallow, but everyone has more unnecessary splurges than they think. Most singles’ biggest drain on the income is nights on the town, followed by buying clothes and tech (phones, laptops, and other gadgets).

If you are looking for money-saving tips for singles, luxuries are the place you can save the most. You shouldn’t starve yourself with ramen while spending a small fortune on cocktails. Don’t take this the wrong way because it’s alright to treat yourself every now and then. You just need to find a balance.

4. Don’t drive yourself insane

We just mentioned giving up some luxuries and wanting to save money is great. However, you need to give yourself some space to vent. If you budget too hard and give everything up, you won’t be able to last too long. Restricting yourself from everything can cause unplanned splurges and lead to a yo-yo effect. Be moderate in everything, even in moderation. Have treat days where you buy something fun. Only you know what you can give up and what is essential to your well-being at the end of the day.

5. Learn to cook

Many singles don’t bother to cook for just one person and instead choose to live on take out. Cooking actually isn’t a complex skill to pick up. What’s best is that once you learn how to prepare food, it will be helpful for your whole life. Home-cooked meals are healthier and cheaper than fast food alternatives. You can also grow your own ingredients if you have a yard or even a balcony for spices. Going green is great for the environment and your budget as well.

6. Not all entertainment options need to be expensive

People often use the movie theater evaluation as a baseline for spending on fun. This is how it works: How much does an evening at the movies cost you per hour of entertainment? Then use that to calculate if alternatives for entertainment are more or less expensive.

What most forget is that there are cheap and free options that everyone can take part in. Go for walks, hikes, or picnics – alone or with friends. Entertain guests at home and play charades or board games. Revisit your stack of unread books or your online gaming library before you pick up anything new.

7. Don’t give in to peer pressure

Comparing yourself to others and feeling the need to match their spending can quickly leave you broke. Fear of missing out on activities with friends can cause people a lot of anxiety. You need to realize that there will always be something going on, and you can’t be everywhere. Don’t be pressured to spend money when you are on a budget – that’s one of the most important money-saving tips for singles I wish I could give my younger self. Once you have set your goals, nothing should impact your planned spending habits. You don’t even need to share your goals with others. Just politely decline and move on.

8. Make additional income

Working a side job can give you extra cash and provide breathing room when times are tough. However, balancing two or more jobs is not something that everyone can pull off, especially for prolonged periods of time. Try to find a temporary gig or something you can balance in the long run. Extra money is always welcome, but don’t burn yourself out.

9. Have an emergency fund

A rainy day budget will take a load off your shoulders. Promise yourself to put a bit of money aside every month. It can be just a few bucks here and there, don’t worry – it will grow over time. You might be tempted to dip into it, but you know better. Use that money only for emergencies and not to order fast food.

10. Work towards your retirement

It’s never too soon to start thinking of your retirement. Give yourself options by saving up early. Invest in stocks and passive income. Inquire with your company about their 401(k) and discuss options with a financial planner.

Rounding up

We hope you enjoyed our list of top 10 money-saving tips for singles and that you learned something that will help you budget. It’s perfectly fine to take a few small steps on the road to fiscal responsibility. What’s important is that you start the journey!

Dorothy Carter

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Downsizing Your Home to Reduce Debt

Dealing with personal debt and drowning in credit cards is a tricky business no one wants to experience. One of the solutions for this kind of problem can be an aggressive debt payoff method or an elaborate debt management plan. However, if you own a home, there is one more option you might be overlooking – downsizing. Downsizing is something many homeowners opt for when it comes to reducing debt nowadays. It’s a more straightforward solution to financial problems, but it’s something you should get familiar with before committing to the process. So, if you’re thinking about downsizing your home to reduce debt, keep reading for some helpful information regarding the topic!

If you’re thinking of ways to reduce your debt, downsizing might be your solution.

What does downsizing require?

Downsizing a house is a process that implies swapping your current home for a smaller or more affordable one. For example, you can downsize to a condo or townhouse, or relocate to a house similar to yours in a less expensive part of the city. If done smartly, downsizing your home to reduce debt can be a huge success. So, what will you need to do to make this plan work?

You’ll have to put your current home on the market and come up with enough funds to buy another, more affordable one. To make this two-step transaction easier, you’ll have to have a strong credit score and a low mortgage rate. This will help you get another mortgage for the new house and will ultimately lead to getting rid of debt altogether.

If you want to qualify for a mortgage loan, it’s preferable to have a credit score over 700. Additionally, if you have mortgage obligations for your current home and want to pay it off quickly, you’ll need a sufficient amount of home equity to cover all the expenses. They include selling your property, covering the down payment for the new house, and paying off your debt in full.

Obstacles to look out for when downsizing your home to reduce debt

Selling your current home and then buying a smaller property may seem simple, but it isn’t. It can be challenging to obtain a mortgage for a new property while your present mortgage is still active. You’ll need a good credit score and sufficient funds to convince the lender that you can undertake a second mortgage.

If you can’t meet these financial necessities, don’t despair! There is another solution to downsize your home and still reduce debt. You can always sell your current home first and then use that money for the down payment for the new one. Of course, don’t do this on your own; consult your financial advisor and real estate agent first! With their professional advice and the use of today’s technology, you can improve your finances and decrease debt.

However, you must prepare yourself for another common challenge. Many homeowners overprice their homes because they’re not aware of their actual value. You may need to downsize to a condo rather than a house if you want to reduce debt. So, before getting your hopes up, get a professional opinion about this and then start planning and budgeting.

When it comes to downsizing, you’ll either have to have a great credit score or a low mortgage.

Is smaller space always more affordable? 

Not every kind of downsizing will reduce debt. You need to think smart, create a budget, and follow up on it to succeed. For example, if you do downsize to a smaller house but move to a neighborhood with a more expensive lifestyle and higher monthly utilities, you’re back to square one. That’s why you need to think about all these things before you actually move to a new place.

The fact is, if you downsize to a smaller place in an affordable neighborhood, your mortgage will probably be lower, you won’t have a massive bill for heating the house in the winter, and you won’t have as much maintenance. These are all perks of living in a smaller space. It’s cozier, and it brings families closer. As a plus, the fact you reduced your debt by downsizing will make you feel comfortable in your small home even more! You’ll be thankful for it, and so will be your bank account.

How much does downsizing cost?

Even though people are downsizing their homes to reduce debt, the sole process of downsizing is not cheap. That’s why you need to involve experts and take their advice regarding your finances and real estate.

Some of the main costs you can’t forget are taxes, legal fees, moving expenses, and remodeling. That’s why you have to find out the actual value of your current home, close the sale and then look for a smaller place that can fit into your new budget. Of course, if you paid off the majority of your current mortgage, you can focus more of your budget on reducing your debt. The important thing is to be aware of your finances at all times and not fall into the trap of adding more to your debt.

Don’t think downsizing won’t cost you a few bucks; it definitely will.

It’s time to make a plan for downsizing your home to reduce debt!

As you can see, downsizing can be quite good for your bank account, if not profitable. However, it’s not an easy process you can do on your own. That’s why you need a plan. So, here are some crucial points you have to consider when downsizing your home to reduce debt:

  • Calculate all the numbers: before taking the first step, you have to know whether downsizing will be profitable and if you will be able to pay off your debt or not.
  • Hire a professional financial advisor and real estate agent: in order to get an accurate picture of your financial situation and the value of your current home and the new one, you’ll have to consult experts; this way, you’ll know at the beginning what your opportunities are.
  • Make your current home desirable for potential buyers: since you want to have the highest possible home equity, make sure to maximize its pros and minimize its cons.

Now that you learned everything about downsizing your home to reduce debt and you have a plan of action, it’s time to act. Finally! So, get a hold of your bank statements, contact the experts and start the process. Good luck!

Dorothy Carter

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