When it comes to saving money, a lot of young adults are falling short: The majority of young people like you and me have less than $1,000 as savings in our accounts, and there are many who have nothing at all. But, where’s my money going? I am sure like me you too have this same question in mind. Today, I bring for you a full break down of how young adults are spending their money, stay tuned to know.
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Where’s My Money Going – 7 Possible Places
1. Housing Eats Up A Big Portion
Undoubtedly, housing eats up a big portion of most young adults’ income. Roughly over 30 percent of your take-home pay goes on the place you choose to rent to live. And don’t forget the huge deposits which could have eaten up all your savings.
2. Student Loans
One of the main expenses for many young adults particularly new college graduates with low-paying jobs is paying students’ loans. A student loan is one crushing debt as it comes in the way of beginning savings, making investments and for many even thinking about marriage.
3. You’re More Organic Lover
Yes, organic food is turning to become more mainstream these days, no wonder more and younger adults like you choose more of this organic stuff. The reason is simple everyone wants to be healthy and have the freshest food available and this indeed isn’t a bad choice. But, hope you know organic stuff can cost you few bucks more.
4. Travelling & Seeing The World
Travelling around the world was never this accessible and personalized than its now, and you as a young adult are surely taking advantage of that. With air travels becoming cheaper, options like mobile offices, and increasing opportunities to work from anywhere, young adult are choosing to see the world with much ease today. Frequent travelling around could mean more expenses for sure.
Unlike coffee and pizza, one thing young people show no regret about spending money is on fitness. From a pricey gym or zumba class to a pair of branded running shoes, getting the best quality things and experience is worth paying for to young adults.
6. Beer & Wine
Well, I don’t mean young adults are drinking more beer as compared to the generations before them. But when it comes to drinking beer they go beyond normal brands, they prefer buying big names like Budweiser and Coors. Which one is your favourite?
7. Taxi’s & Uber’s
Young adults spend more than other generations on comforts and conveniences like taxis and ubers. Urban young people simply love the convenience and low cost of ride-sharing apps like Uber as well as other public transportation methods. So, if lately, you’ve been taking a lot of Uber and Ola, I guess you know the answer to – Where’s my money going.
Some Final Thoughts On Where’s My Money
I guess you “where’s my money” by now. Life is frequently a game of numbers and most of these numbers are in some way, shape or form directly related to money. And therefore, year-by-year spending habits change based on different priorities. But again, don’t consider savings as an offbeat trend, and you’re never to young to start saving and investing. Remember, starting to put some money away now will turn into a habit as you get older, and saving is always a good idea.