Check out these 5 budgeting tips for singles—because who needs a financial partner when you’ve got spreadsheets and coffee?
In theory, budgeting for one person should be easier than budgeting for two. There should be less expenses, or at least one would expect.
That being said, budgeting for one person can allow for more savings or investments in the future. As long as there is some sort of budgeting plan, any financial goal is within reach.
Here are five tips to budget effectively for single people:
#1: Meal-Prep
The majority of people prefers to buy their meals from fast food places or restaurants. In a week alone, those expenses for eating out can easily be greater than $100, and that’s only for lunch.
Meal prepping is much healthier and cheaper. A week of groceries for a single person can average between $60-$110 per week. Depending on how well a person shops, they can make two or three meals that’ll last them a week.
These meals account for lunch and dinner over the week (assuming someone is fine with eating the same thing for a few days).
Three homemade meals are cheaper than buying five lunches for the week that to be honest, won’t fill people up sometimes. Although it may take time to cook, a single person should try meal prepping for the week.
#2: Public Transportation
It’s not a surprise that mainly everyone has a car for transportation. Without a doubt, it’s the most convenient way to travel. However, there are expenses that come with that, such as insurance and gas.
For people that are beginning their careers and don’t have a car, public transportation may be a great idea to budget.
Most cities have a great public transportation system, and the costs of the rides aren’t too bad. Realistically, everyone needs a car at some point of their lives, but if the possibility exists to ride the bus or train to work, it may be worth trying to save money.
#3: Find a New Living Situation
Rent prices have been increasing throughout the years, making it more expensive to live anywhere. If rent and utilities are consuming more than half of someone’s monthly income, a new living situation should be considered.
It may come by living with two or three other people, but at least the money will feel like it’s enough to survive. Above all, it could be a good idea to look at the living expenses in different cities.
Some companies will pay roughly the same for the same position in different locations, with the difference being how expensive it is to live in those areas.
In an ideal world (and it is possible), if all the monthly expenses can be covered by half of someone’s monthly salary, it is an accomplishment. Again, it starts with how much the living situation is, but it is possible, especially for people who live with their parents.
#4: Budget Happiness
So, what should people do with the other half of their salary that is left? Not everything is work and going home. Of course, people should try to invest and save some money every month, but they should also treat themselves.
The money one earns is hard fought week by week, the least someone can do is enjoy it. However, that’s where people can get carried away and overspend.
I would recommend spending no more than 20% of one’s monthly income on wants. Budget how often you can go out to a bar, club, shopping, or out to eat for the month under this budget.
As long as people are saving 20% of their monthly income each month, that makes a big difference for future goals.
#5: Choose Basic Insurance Plans
Almost every company offers health, dental, and vision plans for employees. These plans range from basic all the way to premium coverage.
To be honest, I never thought the premium options were worth it, especially since people may never end up using the benefits. In addition, the difference in prices can be substantial too.
For those people that are more serious about their health, it may be a good idea to start off with a basic plan and through time switch over to a premium plan.
In the meantime, the difference between basic and premium can save people hundreds of dollars a year. Every person is different and has their own necessities, but it might be an idea worth considering.
It’s worth mentioning that these tips are more guided towards people who are beginning their careers post college. They are also guided towards people who are living in their own space, away from their parents.
In my humble opinion, everyone can save a lot of money each month. It’s a question on whether or not people put the time and effort to make a plan to budget.
The question that would follow after is what should people do with the money they save? That’s another topic of discussion, but one that is widely debated as well.
