As a kid, you may have always dreamt of living in a developed city like New York, Los Angeles, London or San Francisco. The fast-moving traffic, metros, fashion and vibrant nightlife is what has appealed to you all along and you have probably imagined what life would be like living in your dream city.
While dreaming doesn’t cost a penny, actually moving to a big city and trying to make ends meet is one mammoth task. People have gone broke because they cannot live up to the expensive lifestyle. If you really want to make it in the big city, you’ve got to be prepared to make some sacrifices and face the reality of your situation.
Discussed below are some simple tricks that will keep you from going broke when you move to an expensive city.
· Track your eating habits
Without a shred of doubt, picking up a takeaway from Subway is lot easier than cooking at home. But the main question you should be asking yourself is whether this habit suits your lifestyle budget. It has been observed that most residents in developed cities are habituated to go for takeaways on their way home.
Instead of spending tons of money on takeaways, you can save a lot by preparing your meals at home. There are two benefits –firstly, you save money and secondly, you eat healthily.
Another advantage of cooking at home is that you can use leftovers and prepare another one. This way, you will save on the additional costs that you will otherwise pay for meals at some restaurant or café.
· Divide your expenditure
You cannot save money by simply keeping a random amount in your savings account. Instead, you can optimally use your money by dividing it into three E’s: Essential, Endgame and Extra. Essential stands for all your basic weekly spending on food, clothing, rent, etc. Endgame is to save for the future from the amount left after your essential spending.
Extra stands for all additional spending which you make on vacations, dinners, entertainment, etc. If you are unable to keep track of your finances, install a budgeting app so that you know about where you spend and how much. Plus, you can save yourself from going broke and not spend an outrageous amount on something that you don’t need and can’t really afford.
· Debt Analysis
So, now that you have an app to manage your finances, you are less likely to blow your money on JB’s concert or in that expensive club! This becomes the perfect time for you to make a foolproof plan to get rid of your debts. To begin with, start by paying off your credit card dues because this will save you from paying high-interest rates and late payment penalties.
While paying off your debts, ensure that you are not making any additional payments in the name of Payment Protection Insurance. If you find that you are a part of this scandal, claim PPI yourself and recover your lost money. You can seek assistance from trustworthy companies so that you follow the right process and acquire the right compensation amount.
Sorting your debts at an early age gives you the liberty to maintain your standard of living and live life on your terms.
· Opt for additional Income
You may have an unspoken passion for your hobby and have always craved to turn it into a rewarding profession, but you never did as you were unsure about it. You can do so by not giving up your full-time job and by working part-time on it instead.
You can opt for freelancing as it gives you the space to work at your convenience and generate additional income. You can be a writer, designer, babysitter, teacher or a motivational speaker. The choice is yours!
· Have a goal and work towards achieving it
If saving money was easy, then life would have been very simple. But, there’s no gain without pain so you have to come up with a plan which actually helps you to save money. For example, a three-month budget where you save 1/4th of your monthly income. If you are successful in doing so every month then treat yourself with your favourite desert on the last day of the month.
· Cut Down on Your Entertainment
Entertainment is the only company you have in a new city when you are all alone. But, if you see it from a monetary perspective it is one major reason aspect that consumes a considerable chunk of your balance. It is therefore recommended that you must cut down on your weekend pans and trips, happy hour drinks and shopping sprees so that you can pretty much stick to your budget.
The temptation to dance the night away at that fascinating club where all your co-workers are having fun is hard to resist but ensure that you have enough savings to make that happen.
Your initial months in a new city might be tough due to the new surroundings, but eventually, you will fit right into your new life. However, do not get obsessed about finances, because gradually you will learn to balance it out by adopting some of the above-mentioned tricks.