Living independently is becoming a common phenomenon these days, especially for millennials. There is a major change in lifestyle causing a dynamic shift in our perspectives.
Living independently has both pros and cons. If you don’t embrace and adjust to the changes, living on your own is challenging and it might become a hassle as there are versatile responsibilities one has to take up.
There are several issues that you might face while living independently and of course managing your finances will be the major one.
Our lifestyles are extensions of ourselves, some of us live loud, some of us prefer company while some prefer to be alone and some of us are experimenting, or in a process of figuring out ourselves.
As millennials, we have unique lenses through which we perceive the world. We have unconventional ways and uncommon muses. But in the end, we are all consumers and our lifestyles depict our finances.
Whilst living independently we are often aroused by temptations that drain our pockets.
Being financially stable is a key role in living on your own successfully. Here are a few pointers to ensure that millennials avoid financial mistakes while living independently.
- Don’t spend more than what you earn
Don’t spread your legs longer than your sheets. Calculate your basic necessities and essential expenses, make sure that they are not more than what you’re earning because you might end up broke.
Don’t live a lifestyle that you cannot afford, be humble and stay focused on your career or dreams.
2. Money saved is money earned
As every dad says, money saved is money earned. Ensure that you are saving for a rainy day, spending the same amount that you’re earning will lead to a catastrophe in case of emergencies.
So make sure to stash or save and don’t buy something just because it is cheap. Being in your 20’s don’t think it is too early to start saving.
3. Don’t give into temptations
We all have our own poison, some like to travel, some are foodies, some of us love to party, etc., giving into your temptations on a regular basis might drain your pockets faster than you know.
Suppress the indulgences that make you feel young, wild, and free, trust me you will have plenty of time later on.
4. Avoid making bad investments
Being in our 20’s we aspire to have things which we were not allowed to have, for example, an expensive house, smartphones, motorbike, car, PlayStation, etc, Nowadays we also have a huge market of pre-owned things which is very compelling. Avoid making bad investments and fight the urge to buy things hoping they would make your life a bit better because in the end we always want more. Not doing adequate research before making such purchases can lead to wasteful spending.
5. Cut back on luxuries
A major drawback of living independently is that you might not be in your comfort zone that was based on the luxuries you were provided at home.
Unless the amenities are absolutely essential, don’t go around purchasing things to stay in your comfort zone.
6. Avoid taking huge debts, EMI, or credit card bills
Stop piling onto your existing debt as it might eventually lead to taking more debts. Avoid buying expensive things on EMI or taking them on credit cards, as they add to your monthly expenses and also affect your lifestyle.
7. Avoid renting an apartment, if you are not ready for it
We all like to have our own personal space and renting your own space in the city is really expensive.
You might end up owning up furniture, amenities, and more just to fill in the space. You also have to pay bills, maintenance, and other additional expenses.
Thankfully for us millennials, there are co-living spaces available in cities that would help you save more. They offer the essential amenities at a pocket-friendly cost. They might be your best option to save money whilst living independently.
Check out coliving spaces by colive, they really give you the bang for the buck whilst also offering a perfect environment to socialize, be productive and relax after a hectic working day.