10 Ways That Young Professionals Can Save Money

Saving money can seem difficult if you are a young professional.  People in the early years of their careers often have to deal with low salaries and a limited amount of benefits.  Here are some ideas for frugal living that can help you put some money away for future investment, for retirement or for major purchases such as a home or a business.  Younger people, in their twenties and thirties, have plenty of time to save, so every dollar counts. Here are 10 ideas for saving dollars that can be used to jumpstart a nest-egg.

1. Kick the latte habit.  If you are a daily coffee-shop visitor, you are probably spending $50-$100 per month on coffee, maybe more if your habit involves fancier drinks.  A coffee maker for your home can cost $20-$40 and coffee beans are also relatively inexpensive.  You can even find a decent home espresso machine for around $100. The expense of equipping your home for coffee-making will be covered in the first month away from the coffee shop, leaving you with extra cash to keep in the bank.

2. Purchase items in bulk or purchase generic items.  Non-perishable things like canned food, frozen food and toiletries are cheaper when you buy them in bulk (at places like Sam’s Club or other “warehouse” stores).  Most major grocery chains and big box stores have generic items that contain the same ingredients and brand name items, but do not cost as much.  These brand-less products can also be money-savers.

3. Avoid new car payments.  If you can put off your new car purchase for a few years, you can save loads of cash.  Assuming you have a car that doesn’t require expensive repairs, you can avoid monthly car payments and instead put the money into your savings.

4. Search for free wi-fi.  If you don’t need the Internet in your home for your job, consider simply searching out wi-fi hotspots that can be used for free.  Many libraries, public buildings and coffee shops now offer free wireless internet access.  Taking advantage of this can help you save on sometimes-expensive internet service.

5. Don’t forget those write-offs.  Taxes can be a big drain on savings.  If you have expenses that are related to your business, you can write them off and not have the money count towards your taxable income.  Not sure what type of expenses qualify?  You can visit a tax specialist.  The cost of the visit will be paid back in the long run because you will be able to save on your taxes.

6. Don’t throw away unwanted gifts.  Re-gifting is not always an option, but you can save a lot if you keep non-useful or marginally-useful gifts.  You can re-wrap them and give them to someone else when the opportunity arises.

7. Shop strategically.  Clothes and other items are cheapest at the end of the season when they are usually worn.  If you can wait until springtime to buy a winter coat (for the next year), you should be able to find some significant deals. Likewise, buying a snowblower in the spring or a lawn mower in the fall is a good money-saving strategy.

8. Take advantage of technology to lower the cost of communications.  Ask yourself if you really need a landline if you can use cell-phones and Skype to communicate with friends.  And ask yourself if you really need that expensive data plan for your cell phone if you can access email, Facebook and other online tools on a regular computer.

9. Bottled water is a huge industry in the US.  In most places, tap water is safe to drink.  If you have concerns, you can buy a water filter for a few dollars to give yourself some peace of mind while drinking in the savings.

10. Cut back on unused memberships.  If you don’t watch a lot of cable TV, ask yourself if you can go without it.  The same goes for your health club membership.  Trimming extra expenses is one of the most effective ways to save.