3 Hacks to Help You Get Ahead on Any Budget
- Everyone doesn't transition into adulthood with financial backup.
- To get ahead financially, have an emergency fund, minimize rent payments, and create your network.
- These tricks will help you improve your financial situation and improve your budgeting skills.
Unfortunately, everyone doesn't transition into adulthood with financial backup. For many, parents could provide support in all other ways but financially. It can be overwhelming to think about the opportunities that may be lost because you don’t have access to money. Below are three life hacks to help you move forward financially.
1. Have Money to Fall Back On
Their Scenario: Parents provide backup to their regular finances. The family covers emergencies and major purchases.
Your Hack: Build up an emergency savings fund.
Focus on building your emergency fund. Start by saving one whole month of pay. Emergency savings increase over time. Create a budget to set aside money over time.
Start with one month and then work on increasing your emergency fund. Ultimately, your savings fund should equal three to six months of your monthly living expenses.
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2. Subsidize Your Rent
Their Scenario: Parents help them pay rent and bills in college and after graduation.
Your Hack: Pay as little rent as possible while you are starting. Live at home or get roommates.
If your home life is emotionally and financially stable, consider staying home for a year or more to save on rent and stack up. It may be annoying to follow the rules of your parents or a family member’s house while you are an adult. However, following rules is a small sacrifice to set you up for financial independence.
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If you don’t have a stable family environment, you can choose to live with roommates rather than pay rent on your own. With roommates, you can pay less each month for an apartment. In addition, the roommate route can either allow you to build your savings or budget your paycheck better.
3. Create Your Own Network
Their Scenario: Access to internships and jobs may be a phone call or text away.
Your Hack: Build your network and form valuable relationships.
Your uncle may not be able to hook you up with a dream internship, but there are plenty of ways that you can create a reliable network for yourself. First, find advocates who see your potential and know how to get you to the next level in your career. Advocates can be mentors, professors, and former bosses.
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While enrolled in college, a training program, or working, you create meaningful connections with people. Hang close to these authentic connections and create a space where you all help each other out in the short and long term. Your network could help you make advances in your career. By having connections, you can secure jobs that meet your skills and interests, resulting in a higher pay and helping you improve your financial situation.
When you make it to the top, pay it forward and ensure the kid gets a chance to move forward. It can be overwhelming to feel you have to figure everything out on your own. But remember, you have made it this far. You have the power to make the best of your life circumstances.
The Money Wrap-Up
To ensure your income is retained, implement a practical and reasonable budget. By being aware of your monthly income and taking financial measures to lower your expenses, you are able to achieve your goals sooner.
Also, keep in mind that if you wish to receive loans in the future for a car or home loan, you should also use credit cards responsibly. However, if you cannot use them properly, it is best you stay away from them as they can negatively impact your financial position.
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