There are a lot of benefits to being single. Flying solo means you have complete freedom to make your own decisions and lets you focus on your own personal and professional development. But what about your financials? Financial planning for singles is typically never talked about.
Single adults can live in smaller spaces and frequently choose to dwell in cities, where there are more high-paying jobs. They also have the free time and independence to socialize and network with new people, opening the doors for new career opportunities.
But when it comes to financial planning, not having multiple incomes or someone to split bills with can make it more challenging to maximize savings. But just because you’re single doesn’t mean you have to struggle to accrue wealth. Let’s explore some tips you can use to save money and plan for the future, all while enjoying the independence and freedom of being single.
Financial Planning for Singles: How to save money strategically
Saving money can be challenging, and it’s only gotten harder for younger generations. Mounting college debt prevents many millennials and Gen Zers from achieving milestones on the same timeline as their parents. Studies show that the average millennial carries $37k in college debt, far more than any previous generation.
Just because you have debt doesn’t mean you can’t focus on saving for your future, however. Here are some top tips for how singles can maximize their savings and enhance their financial wellbeing without having to rely on anyone else.
Get creative with spending and saving
Being single is fun – but it can also be stressful. Nights out with friends and going on dates while also paying all your bills on your own can easily land you in hot water if you’re not careful. This is even more of a concern if you are self-employed or an independent business owner with additional finances to manage.
When approaching financial planning for your business or yourself, it is critical to consider your needs and timeframe. How much can you afford to save now? Will your financial situation be comparable next month and the month after? Do your best to think strategically about ways you can cut costs – every little bit helps.
In your personal life, you may want to find ways that you and your other single friends can split expenses. For example, if you lease or own a home, consider renting out a room to a friend or family member to help with the bills. This is considered one of our top financial planning for singles tips!
Instead of ordering your groceries for online delivery, you and your friends can chip in to buy a membership at a local Costco so you can buy in bulk at lower prices and share. If you need something, think about whether you can simply borrow it from a friend before swiping your credit card.
Turn your spare time into spare cash
As a single adult, your free time is all yours. And chances are, you may not have to worry about a never-ending to-do list of home repairs, or other things that can be a drain on your time.
You can use this spare time to get a side hustle to bring in some extra income. Our economy and spending habits have changed during the pandemic, and there has never been a better time to explore freelancing as a secondary source of income. Freelancing is ideal as a second job because you only take the projects that you have time for, and most of these jobs can be done from home.
Alternatively, you can use your spare time to research investment opportunities and other ways to generate passive income, a surefire way to increase your net worth over time. Fintech has made it easier than ever for people to buy and trade stocks online, and cryptocurrency exchanges have made many young tons of money the past year.
Passive income can be anything from a mutual fund or annuity to affiliate marketing or making…
Read More: Financial Planning for Singles: How to Save Money and Enjoy Your Independence