Single-income earners may have the freedom to spend time and
money on themselves, but singles should be mindful of how financial decisions
may impact their personal finances. eSmart Tax’s advice to singles: Save more and spend wisely. Here are some tips to help you save:
- Pay Down Debt
Knock out your high-interest debt. Do you have a balance on a credit card with
more than 12% interest? Set aside as
much as you can every month to make payments on that debt. You’ll cut years off of the repayment term
and save hundreds or even thousands in interest.
- Start an Emergency Fund
eSmart Tax covered this topic last month in our “Use Your
Tax Return to Kickstart Your Emergency Fund” article. It’s very important for everyone to have
money in the bank that’s set aside for emergencies. You’ll save yourself a ton of debt if you
keep an emergency fund.
- Entertainment is an unnecessary
expense. Cut back on it!
Enjoy the nightlife?
Like to boogie? One of the
biggest expenses of single life is entertainment. This includes going out to
dinner with friends, grabbing drinks, watching movies, or going to
concerts. All of these add up and none
of it is cheap! Limit yourself to one or
two of these activities three times a week and you could save more than you
- Think forward to Retirement
The earlier you begin contributing to your retirement,
the less you actually have to save because interest compounds over time. While retirement may be more many years away,
make sure you’re putting at least something into your 401k or into your own