Covid has changed our lives, and millennials’ financial planning is more critical than ever. Here is a list of top financial tips by Red Payday for young adults after the pandemic.
The pandemic has influenced many young adults who are at the starting phase of their careers. Many lost their jobs while few of them are still paid below standard salary. This can have a long and devastating effect on the economy as these millennials will be more likely to fall victim to enormous debts. Our education system has never considered educating students on these topics, so we tried to compile a list of top tips to help young adults prepare their finances.
Financial Tips For Young Adults After The Pandemic RedPayday
Budgeting and saving
The first and most important tip we have for young adults entering the job market is budgeting and saving. Proper planning is fundamental for any successful financial plan, and each money you save adds up to your account to have a significant impact on your finances.
Budgeting and Saving ideas:
Get a clear idea of how much you need to spend.
Jot down the fixed expenses you have every month, like rent and utilities.
Wear your detective shoes and find out precisely what you spend your money on.
Revisit any spending you feel needs attention.
A small tip can be if you are spending too much on coffee every month and you don’t want to cut this off completely, a good idea can be to buy a coffee machine. This will cost you more upfront, but the savings you will make will be significantly worth it over a period of time. You may wonder, but where will I have the money to pay for the coffee machine? We have a nice little trick up our sleeve that we will discuss at the end of the article.
Cut down on subscriptions: Another new expenditure that is upon us is in the form of a subscription. Most digital products, even some meal services, also operate in this system. The main idea is that you pay a small sum each month to enjoy a service. But many of these subscriptions are redundant and cannot justify their prices. Many also have cheaper or free alternatives that get 90% of the same job. Although the beginning subscription seems like a low-cost service, you will soon see how these small fees can add up. Spotify, Netflix, apple arcade, and so many services we use every day without thinking how much we end up spending on these rather luxuries. So, we recommend you consider your monthly plans and stick only with those you need or opt for a cheaper or free version of the app.
Rent and utility: rent and utility are two of the most significant expenses you will have. There is no direct way to cut on these as they are considered to be essentials. But, we do recommend you pick a shared apartment away from the city center. This can potentially save you a lot. Also, use energy efficiently and turn off your heating when not in use to save on utilities.
Understand your taxes
Many young adults are unsure about their taxes and what their after-tax income is. Therefore, it is essential to calculate your tax and figure out how much you have after-tax to spend. Many online tax calculators can help you in this regard. Also, make sure to research to the point where you can do your taxes. There is absolutely no reason you should spend money on hiring someone to do it for you, given you have a simple calculation to make.
Always have insurance
Another mistake many young adults make in their early life is not getting insurance. They think having insurance is a waste as you have to pay a premium for an event that is highly unlikely to happen. This is not true. Indeed, you may face life events that you are least prepared for. So, we do recommend you getting insurance from a well-reputed company.
Have a side hustle
Having a job is considered a great privilege during this pandemic, but you can never count on it significantly when the situation can change very quickly. The world has seen an unprecedented number of people being laid off from their job thanks to coronavirus. So, it is a great idea to start a side hustle. With the help of the internet, you can provide any service or start a small online business with little investment. There are plenty of earning opportunities and free materials on the internal to help you get started. The money to get started can be as low as a couple of hundred dollars to start. You can also work extra time, a privilege you may have worked as an essential worker.
Create an emergency fund
It is essential to make sure you’re prepared to face whatever life throws at you as a young adult. Having an emergency fund can be a great way to keep your finances in check. Whether you have substantial student loans or are struggling to keep up with your expenses with your salary, always make sure to keep aside a small sum of money for emergencies.
The last thing we can tell you is that you do not need a fancy college degree or online certification to be responsible for your finances. If you follow these tips, you will go a long way in becoming financially independent. But, we understand life can be challenging at times. You may need some actual cash to make a saving in the long term. Remember we promised to show you a way of cutting your expenses on a new coffee machine? For any short-term financial needs, you can apply for a quick payday loan. It is a fast loan that gets approved within24 hours as it does not require any credit check. You can pay off the money from your next paycheck. How convenient is that! So if you face any urgent cash crunch, redpayday is there to help you out.
Remember, your finances are in your hands, and if you are willing to work hard, we are certain that you will have a stable life and become a young, financially independent adult.