When you are looking to build wealth for your future, especially as a young professional, it is important that you start developing certain savings habits early on. Saving early and often is a great way to start building habits for the future and to start building an important cushion for your future. However, saving during this time of your life can often be a challenge, especially when your income is limited to begin with. The good news is, there are a number of things that any person can do in order to start putting more money into savings, even if they are only making a limited amount of money right now.
Get As Many Roommates That You Can
Roommates are a great way to save money. By finding roommates you won’t only save money on rent, but you can save money on virtually every expense in your home. Imagine half the rent, half the utilities, half the cable bill and half the trash pickup costs. That can quickly add up to hundreds or even thousands of extra dollars per month. Now imagine being able to put all of that money directly into savings, it can seem more than worth it for the added inconvenience of “roommate drama.” Plus, if you take the time to really find a roommate that you can get along with you can enjoy these financial perks and the perks of getting to split housing responsibilities with someone that you enjoy.
Cook All of Your Meals At Home
So many people spend more money than they can afford simply because they eat out all of the time. Even if you are eating at cheap places and only spending $10-15 per meal with tip, that amount of money can buy a lot more food at the grocery store. You don’t have to be a five star chef in order to cook more meals at home either. Pre-made meals, frozen dinners, pizza, simple pasta or just chicken breast on the George Foreman grill are all easy to make and affordable dinner options. Doing this will start saving you a lot of money. Keep track of what you are saving by eating in more and put the difference aside in a jar or a separate account for a month. Chances are you will be really surprised by how quickly your eating out expenses were adding up.
Shop Around for High Interest Rate Savings Accounts
Many times just the act of saving money isn’t enough to build the type of cushion that you are really looking for. Start shopping around and make sure that you are using the right type of savings account. If you take the time to find a high interest rate savings account you can start earning more out of every deposit you make to this account. It may just be a few percentage points extra but that can add up to hundreds of dollars more in earned interest, just by choosing the right savings.
There is no denying that saving extra money is difficult. It requires patience, discipline and sacrifice. However, if you are willing to really make an extra effort and to consider these simple tips, you can start building a bigger savings account faster than you ever thought possible.