Create a Budget
Creating a budget is the first step to frugal money management. Take advantage of your smartphone by using apps such as Mint or GoodBudget to sync all your bank accounts, investments, loan payments, IRA, 401(k) and properties all in one location. Then they’ll analyze your spending and help you create a budget that works with your income and lifestyle.
Use Public Transportation
Depending on what city you’re living in, public transportation may be more efficient than driving a car. Eliminating your vehicle will cut out car insurance, car maintenance, potential parking/traffic violations and gas costs. Instead, ride your bike, take the metro/subway or if you’re destination is out of the city, use a ride-sharing app. Using public/carpool transport instead of maintaining a personal car, could save you anywhere from $200 to $600 a month!
Don’t Live Alone
One of the biggest expenses you’ll encounter living in an urban area is rent. Before you decide to move anywhere, putting in time and effort to thoroughly research your options using a website like ForRent is crucial. According to Rent Jungle, the average monthly cost of an apartment within 10 miles of New York City is a whopping $3,519. If you’re following the traditional rule that rent should be no more then 25 percent of your income, you would need to make at least $14,000 a month to afford living alone in New York City. Splitting an apartment with roommates will help lighten this load. Not only will you split rent, but also utilities such as internet, electricity, water and cable too. Cities are vacation hot spots and as a resident, you should take advantage of that. If you’re leaving to visit your parents, go on vacation or stay with your significant other for the weekend, list your place on Airbnb and make a little extra cash.
Find a Side Gig
As you start your career, putting in 40 hours a week at your job is not always going to be enough to live comfortably. You might be able to make ends meet, but what about putting cash into your savings or contributing to your retirement. Finding a side gig is a great way to make some extra dough. Take inventory of your talents and find ways to get paid by using them. If you’re good with kids, look for weekend babysitting jobs or tutoring positions after school. If you have a knack for writing, look for freelancing opportunities with magazines, websites or blogs.
Take Advantage of Free Fun
Temptations will be everywhere living in the city — the new Thai restaurant that opened down the street, the hip, new concert venue or the classic dine-in theater. Living in the city on a budget requires the ability to say no to certain activities and seek out opportunities for free fun. When visiting a museum or art gallery, find out what day of the month they don’t charge entrance fees. Keep track of the city’s entertainment calendar to find free concerts, festivals, farmers markets or other budget-friendly activities.
