Financial Tips for Solo Living

If you’re leaving your family’s home for the first time, or setting out on a new adventure, living on your own can be a completely different experience – and often a financial privilege. When you don’t have a significant other or roommates helping you with the costs of renting or owning a home, you’ve got to buckle down and ensure your finances are in top shape, especially with rising costs.

If you’re living on your own, or simply interested in learning more about solo living, here are a few helpful financial tips to keep you afloat:

Create a monthly budget and stick to it.

A well planned budget can be a solid foundation for your finances and all the costs associated with solo living. First, outline all of your sources of income, including your weekly work salary. Once you’ve done that, make a list of your living costs – rent/mortgage, utilities, internet and/or cable, car payments, groceries, and any other fixed costs. Having these expenses lined out can give you an image of how you should be spending each month. 

Start setting financial goals for yourself.

It’s never a bad idea to keep a list of personal financial goals to keep you on track. Perhaps you’d like to move into a bigger place, or make the move from being a renter to a homeowner. Maybe you’ve got a vacation in mind for the future, or you have a big ticket purchase you’d like to save up for. Consider the costs of these goals, even if they’re rough estimates, and work them into your budget when possible.

Build an emergency or rainy day fund.

When you’re living on your own, one downfall can be that you don’t have a roommate or significant other to help shoulder the burden of living costs. Having a separate savings account strictly for emergencies can make a huge difference in case of an unplanned financial stressor, such as a job loss, salary cut, or medical emergency. 

Consider your retirement savings.

No matter your age, it’s never too early to begin saving for your retirement years however you can. Polam’s individual retirement accounts (IRAs) come with a wide variety of terms for your convenience, with competitive interest rates, no monthly or annual service fees, and your interest is compounded daily. Visit our website to learn more about how you can open your own IRA with Polam.