Saving is important for ensuring financial independence and security. More often than not, we all have multiple financial goals that we are saving towards, but even if you don’t, saving is important to keep you covered after a financial emergency.
Everyone needs a strategy that is appropriate for their financial circumstances. For singles living on one income, the main difficulty is that there is no one to fall back on if you don’t manage your budget properly. So whether you’re happily single or hoping to share incomes with someone one day, there are some simple steps you can take to secure your financial future now.
Saving strategies for singles
1. Budget for expenses: If you live alone, paying the full cost of rent can be tough, so you need to ensure you budget for this and any other monthly expenses that you have. Budgeting gives you an idea of how much you are spending and how much you could possibly save. Using this information, you can attempt to cut down on any unwanted expenses.
2. Use cash whenever possible: Debt can build up unknowingly when using a credit card. Using cash allows you to physically visualise payment, which can be a harder psychological task than simply using credit cards.
3. Set aside money for emergencies: Generally you should set aside around 7-8 months of expenses for that rainy day.
4. Share an apartment: Whether you’re renting or own your own place, having someone to share with does lighten the financial load. You’ll be able to split energy and internet bills with them, not to mention get a better deal on where you live. That’s because it’s cheaper to rent a two bedroom apartment where you share the costs with someone else, than bear the load of a one bedroom or studio apartment yourself. If you happen to own your property, you’ll be able to make some extra income by renting out a room to a friend you don’t mind living with.
5. Be creative – make gifts at home: You can create a personalised gift instead of buying from the shops. This can be time consuming but friends will usually appreciate the thought and effort behind the gift.
6. Create a shopping list – and stick to it! Making a list can prevent all those temptations and unplanned purchases. Discipline is important, as expenses can get away from you if you’re constantly indulging.
7. Make your own lunch: These days you’re hard pressed to find lunch for under $10 – so it quickly adds up. Wraps and sandwiches take only a few minutes to make but they can save you a lot of money.
8. Use coupons: Coupons, discounts, and free ‘stuff’ are usually published in local newspapers, in magazines and on shopping dockets. These small savings add up over time.
9. Cancel services that you don’t use. Mobile phone and cable TV services are two subscriptions which can either be cut back or cancelled altogether, particularly if they are not in use regularly.
10. Maintain your appliances: Check your appliances to ensure they’re clean and use your vacuum to gently clear away any dust. Check all vents, especially on refrigerators, dryers, and heating and cooling units. Without dust blocking their mechanics, they’ll run more efficiently – saving you money on your energy bill. Plus, you won’t have to replace them so often.
11. Buy a used car. A car is probably the second most expensive single item a person buys in their lifetime. You can save a great deal by buying a good quality used car and taking care of it well.
12. Cut back on microwave dinners: While it can be difficult to motivate yourself to cook for one, think again before you nuke those prepackaged meals. An hour’s worth of preparation on the weekend can give you a lot of cheap and easy meals that will end up saving you a lot of cash.
13. Increase fruit and vegetables in your diet: Now there is another good reason to increase your daily intake of the healthy stuff – it reduces expenses. Meat is expensive, and too much of it is not good for your body. Why not introduce a vegetarian night into your weekly cooking habits?
14. Carpool and take public transport: Taxis or driving can be expensive, particularly when parking in highly populated areas with expensive or restricted parking. In many cases, carpooling and public transport are far better options.
15. Last and no means the least – plan for retirement: Retirement for most young singles is a distant thought, but it is best to begin thinking about it at an early stage to secure your future. Take some time to consolidate your super into one fund that suits you best.
Saving when you’re single can be tough, but there are also several benefits of being unattached. For example, if you were to be offered a job in another city, you can follow your dreams and make a big change relatively easily – you’ll have much less work to do to make that happen than a family of four would. Plus, you have the freedom to splurge when you want to without having to negotiate with anyone – so give yourself a break from saving every once in a while to help motivate you for the long run.
