As a young professional who recently moved out on their own for the first time, living independently and within a budget isn’t always easy. I graduated from college in the height of the recession and struggled to find a good paying full-time job. Since then, I’ve found full-time employment and moved out on my own, but finances are still a concern for me. Over time, I’ve learned simple ways to cut back on expenses and still live comfortably. Here are five simple ways young professionals can feed the pig and save cash:
1. Consolidate student loans. By consolidating all eligible federal student loans, over time you can save money on interest and increase your repayment plan options. Instead of writing monthly checks for multiple lenders, by consolidating you simplify paperwork and write one check or set up one monthly autopayment.
2. Cut the cable company umbilical cord. Cable services aren’t necessary, but don’t scrap the internet. By using a $20 HD antenna you can buy from Target or Best Buy, you can receive multiple HD channels like NBC or CBS for free. In addition, by using a device like an Apple TV or XBOX, you can stream Netflix or Hulu Plus from $7.99 a month. For a fraction of the cost, you get a variety of high-quality programming on demand through these services that are equally as entertaining.
3. Go generic. If you take a medication on a daily basis, ask your doctor about switching to a generic version of the medication. Many supermarkets and chain stores have special lists of popular medications that are available to you for $4 for a month’s supply. In addition, pharmacies like Walgreens and CVS have membership programs that give you access to branded and generic medicines at a discount. If a generic is not available for you, take advantage of mail order pharmacies or savings cards available on the manufacturer’s website to reduce your out-of-pocket expense.
4. Cook in the Crockpot. If you tend to grab take out, try taking out a Crockpot instead. It’s healthier and cheaper. Visit your local chain store and find a good quality Crockpot on sale to buy or check your local Goodwill. (Be sure and see if it works first). Look for one with a multiple temperature setting. Find recipes online. In the morning before you leave for work, put all of your ingredients in the machine and put on low. When you get home, your meal will be hot and waiting for you. Many of today’s models are much safer than that of the past and you can feel comfortable leaving your home with it on. You’ll have enough for leftovers the next day.
5. Talk is cheap but cell phones are not. Most young professionals text on their phone, not talk. Review your cell phone plan and find out if you could save money. Do you really need unlimited minutes when all you do is Facebook your friends and text back and forth? Websites like www.billshrink.com can help you dramatically save on your bill. Be sure to take advantage of work or college alumni discounts off of your cell phone plan as well. You might want to entertain the idea of a prepaid service. Many carriers are now offering Android and Blackberry smartphones with pay-as-you-go service for half the price of regular contract phones. Analyze your bill and see where you can save.
6. Have your cake and it eat it too…but at happy hour. If you want to go out with your friends, by all means, go out. However, avoid bottle service at the club on Saturday night. Instead, take advantage of happy hour specials throughout the week. Many chain restaurants and local downtown eateries offer steep discounts on alcohol and appetizers during happy hour compared to the weekend. Wrangle up your friends and have fun.
Saving money as a young professional is not something that will come to you over night. However, with some practice and a small change in habit, your piggy bank will get fed and you’ll sleep better at night knowing you’re building a good financial foundation for the rest of your life.