Use These Personal Finance Tips While You’re Still Single
When you’re single, it’s easy to lose control of your budget or even feel like you don’t need it at all. Date nights, takeout for one, no one can share a streaming subscription with anyone… the cost of being alone adds up quickly. Without a second income, you’ll have to get creative with how you save. At the same time, you have creative freedom as you can make your own financial decisions.
I spoke with personal finance expert Jan Smith, co-host of the @frugalfriendspodcast and modernfrugality podcasts on Instagram , who shared her top tips for managing your finances alone.
Balance your social life with affordable options
It makes sense to take advantage of your loneliness with a hectic social life. At the same time, it’s all too easy to fall into the trap of expensive dinners and drinks, especially if that seems like all your group of friends wants to do.
Smith reveals how the relationships she built with people who were willing to hang out for free eventually turned into much stronger friendships. Learn how to say no to overpriced plans (rooftop bars get boring very quickly) and suggest affordable alternatives. Here is a list of ideas for social plans that won’t break the bank. If someone doesn’t want to spend time together at no extra cost, it could be a friendship that you’re outgrowing.
Analyze where you can cut
Smith advises looking at at least the last 90 days of your spending to see exactly where your money is going. When it comes to the idea of ”downsizing”, many people panic and assume that their lifestyle will have to change drastically. Smith says it’s a fear response, and often it isn’t. “The first thing you think you need to cut down on,” like your daily coffee or weekly happy hour, “can usually be the last.” Smith says that after examining their spending habits, most people find that they can first cut spending in areas where they don’t even realize they’re wasting their money ( missed subscriptions come to mind).
The unique benefit here is the fact that choosing how and where to cut becomes a lot easier when you don’t have to consider other people or make it a lengthy discussion.
Learn to cook for one
After examining your shopping habits, you may wince at how much money it takes to order takeaway food. I understand that portion control is difficult, but takeout is easy. Smith says learning how to cook for one person (without having to do the same thing all week) is an important way to save money. Here are some more tips on how to save money at the grocery store .
Create a fund for a rainy day
It’s never too early to start putting money into a rainy day fund, which is savings you set aside for unexpected expenses in the future. Smith recommends a “starter” fund for a rainy day of about a month’s rent plus your insurance deductible.
Smith advises creating such a security system for yourself. Even if you have a partner, you don’t want them to depend on you during financial emergencies. For more information on building your emergency fund, here are some more of Smith’s tips on what you should be doing now to prepare for the coming recession .