As a young adult trying to make your way in the world, it can be awfully tempting to spend money all the time. After all, there are so many things you need and want. However, to have a successful financial future, you do need an emergency fund. Fortunately, there are a few ideas to help you save as a young adult.
Pay Yourself First
The first thing you need to do is create a budget. You will need to track your expenses each month, so you know exactly what is coming in and going out. This will help you figure out how much you can afford to save each month. Then, you can make it a habit to pay yourself first by putting money into your savings account before you pay your other bills or spend frivolously.
Get a Second Job
While you are young and energetic, you can get a second job to help you build your emergency fund. You might choose to work in the evenings, or to get a job online. If you get a second job online, you can set your own hours and work when it is convenient for you. This can help you build an emergency fund quickly, and it will even help you build your resume in the process.
Do It Yourself
Another idea to save money for your emergency fund is to try do-it-yourself projects when you can. Instead of taking your car to the shop, you can repair it on your own, or do your own oil changes or brake repair in Vancouver. Use online resources or go to a Minit-Tune & Brake auto centre and ask for advice. You can fix your own computer instead of hiring a technician, or paint your walls instead of hiring a contractor. Take the money you save, and put it into your emergency fund.
Get a Roommate
Another way to save for your emergency fund is to get help with your mortgage or rent payments by getting a roommate. If your home or apartment has multiple bedrooms, you could potentially have multiple roommates to cover your entire mortgage or rent payment. Since your rent or mortgage takes up a large portion of your monthly budget, you can really save a lot of money each month with this tip. Just choose wisely to ensure you get a roommate who pays on time. You could even invest a little money creating an income suite in your basement to earn more income for your emergency fund.
Watch Your Charges
Many young adults use credit cards, however, it pays to be smart about your purchases and pay off your balance each month. This means that you won’t have to pay interest, so you will save money. Any extra money you have should be going into the emergency fund and not to the credit card companies for interest. You might consider just having one credit card, so you can better track your expenses to make sure you don’t overspend each month.
You can save for your emergency fund as a young adult. Try these ideas to get started today. In the future, the money in your emergency fund will provide you peace of mind. It will be there for you when you need it or help you save for more education or travel abroad.