Money-saving tips for young millennials who’ve just moved to a new city

Team Udayavani, Nov 20, 2020, 3:02 PM IST

Moving to a new city is a chapter in a youngster’s life which is both intimidating and exciting. Leaving the comfort of their homes, these young adults have to fend for themselves. Managing expenses is one of the biggest lessons living alone offers which can often be a challenge, especially if you are living in a Tier-1 city.

However, with some smart choices and simple tweaks, budgeting and managing expenses do not have to be an Everest’s climb every month. Here are some tips for youngsters moving to a new city, to not only survive but thrive in their new homes.

Cut Down On Your Rent:

Rent takes up a third of one’s monthly living expenditure. Based on the area and the amenities, rents can widely vary. But if you do choose to go for cheaper accommodation, you might need to compromise a lot. Cheap accommodation may translate to unmet daily amenities, limited facilities, poorer infrastructure, or even be located so far, that they add to your commute and travel costs. But that doesn’t mean that you need to break the bank just to live better. Youngsters can explore the option of managed accommodation spaces. These are meant for community living, but also ensure that residents get comfortable and well-designed private spaces where they can lead their lives. Most of these are located near college hubs/office complexes so you don’t have to burn a hole on commute expenses.

Professionally managed accommodation providers like Stanza Living offers residents an all-inclusive living experience – bundling everything from food, WiFi, laundry, housekeeping, maintenance to even covering furniture and appliances means you always have visibility on your monthly expenses. That’s why it can be significant support in managing costs in a new city.

Pick Up a Side-Hustle:

Being a student or a new office goer is tough itself and picking up a side-hustle may feel like an additional pressure. However, with the rise in the gig-economy and support for remote working, companies are appreciating talent rather than experience and often pay well for projects that freelancers pick up. Having a side-hustle puts that extra money in your kitty which you can use towards building up your savings and having a more financially secure life. From creative to consultative, side hustle opportunities are aplenty for talented folks.

Share Your Commute:

Apart from rent, the monthly commute is yet another expense that eats up into the monthly budget. However, there are ways to cut back on those and one of them is using shared transportation. Though public transport is ideally the best way to save money, the recent pandemic might deter many from choosing it. By sharing auto or fuel expenses with a friend or a colleague every day, you can half the money you will be spending every month on your commute. If you are living in a PG in Chennai, Bangalore or any other city, you can even ask your PG mates if they travel via the same route as yours and would like to share the cost. You might be surprised at the number of people who might join in.

Plan Your Budget:

Planning the budget is important to maintain savings goals. Start by determining the amount you receive every month. Then list down your essential expenditures like rent, grocery, etc. Then move on to secondary expenditures like entertainment and try to reduce the cost if you think it may be too much – however, it is important that you treat yourself (not too lavishly) to keep the morale going. If possible, track your daily expenses in a diary or an excel, take note of where you may be spending too much and adjust your spendings accordingly. Making these little tweaks can go a long way in building your savings goals.

Keep an Eye Out for a Good Deal:

Nothing works better for savings than sales and coupons. While one may try to cut back on things to save money in a new city, they cannot overrule grocery expenditure or even the occasional feel-good splurge. Youngsters can make the most of this by keeping an eye out for sales or procuring coupons that offer discounts on daily essentials. While sales help manage savings, going shopping during every sale is also counterintuitive. The right way to enjoy a sale is to set a shopping schedule once a month or two. This way, you will be able to save up as well as indulge in retail therapy once in a while.

Open a Savings Account:

Opening a savings account is the acknowledgment you make towards your intention of building up your financial fortress. Being a student, it might not be a very easy task, but with cut-backs and side-hustles, you can send the extra cash to your savings account and build up your kitty. Do thorough research on banks offering the highest rate of interest and amenities on savings accounts and talk to a financial expert before making a decision.

Living in a new city can be scary especially considering there are so many aspects to take care of, from making new friends, finding a new home, and acquiring this new skill of managing your finances without overspending. Having some of these tricks up your sleeve will help you manage this new city experience much better.