Money management isn’t exactly the most exciting topic for a young adult trying to figure out this whole independent life. Keeping your finances in order can feel pretty overwhelming.

Budgeting seems like this whole restriction. Learning how to budget and really understand where your cash is coming and going each month is low-key one of the most liberating skills you can have.

Think about it – when you’re mindful of your money instead of just wildly spending, you’re the one in control. You get to decide what’s worth spending on and what’s not a priority. No more stress when unexpected expenses pop up.

Poor Credit? No Worries

Interest RatesHigher than standard loans can range from 10% to 36%Quick approvalMore expensive over time
Eligibility RequirementsOften requires proof of income, residence, and bank accountEasier qualification compared to traditional loansHigher risk of default
TermsVary widely, can be short-term (months) to long-term (years)Flexibility in termsTerms can be unfavourable due to low credit score

Look, having a poor or limited credit history as a young adult can really be problematic for handling unexpected expenses. You need a loan for that car repair or emergency situation, but traditional lenders keep denying you because your credit isn’t up to par yet. It’s a frustrating cycle.

In these cases, services like no-refusal payday loans in the UK can sometimes provide that temporary band-aid solution. You can avail of such loans from direct lenders for bad credit!

The big perk is that they don’t require those intense credit checks, so the loans are available even with a straight-up low credit score. They offer a way to access cash quickly until your next paycheck arrives.

Cutting Unnecessary Costs

The first step to cutting unnecessary costs is getting brutally honest about where your money is going. For a couple of months, keep a tab on every spending. You’ll be surprised at how much even seemingly insignificant costs build up! Sort every expense into needs (groceries, rent, etc.) and wants (entertainment, eating out, etc.).

From there, it all comes down to reducing or getting rid of those “wants” that aren’t really necessary but aren’t adding any value. That $6 daily latte run, £15/month streaming services you never use, or random Amazon purchases all deplete your funds quickly.

Cook More Meals at Home

Dining out, ordering delivery, and hitting the restaurants are huge budget busters. The average meal out for one is around £13, never mind alcohol costs! Instead, commit to packing lunches and cooking dinners at home more often.

You’ll save a lot and likely eat healthier too. Use weekly meal preps or bulk-cook freezer meals to make it easier. If cooking every night is unrealistic, aim for 50/50 at first. Looking at potential yearly savings can be super motivating.

Cut Underutilised Subscriptions

We all have those random subscriptions we’ve totally forgotten about that renew each month. Audit what you’re paying for – streaming services, gym memberships, software, subscription boxes. Anything you aren’t utilising regularly is just throwing money away.

Cancel those immediately to stop the cash drain. The costs seem small, but reallocating even £20/month to your savings goal really accelerates your progress over a year.

Being mindful of where your money is going empowers you to make smart adjustments. A few simple cutbacks create big savings fast!

Building Your Emergency Cushion

AspectDetailsSteps to Implement
BudgetingTrack income and categorise expenses to manage spendingUse budgeting apps, track daily expenses
Savings PlanSet aside a fixed portion of income regularlyAutomate savings transfers
Emergency FundSave 3-6 months’ worth of expenses for unexpected eventsStart small, increase savings gradually
Debt RepaymentPrioritise high-interest debts, use methods like snowball or avalancheList debts, allocate extra funds to repayments
Financial GoalsSet specific, measurable, and time-bound financial objectivesWrite down goals, create action plans

The idea of putting away 3-6 months’ worth of living expenses sounds pretty intimidating when you’re young and still figuring out this whole “adult” life. Having that little safety net can be a life-saver when unexpected costs pop up out of nowhere.

I’m talking about covering rent and bills if you suddenly lose your job. Or not completely going broke over that random car repair or medical expense. With some cash reserves, you’ve got valuable breathing room to get back on stable footing instead of drowning in debt.

Now, I’m not saying you need to starve and never have fun just to save that much ASAP aggressively. The smarter move is taking baby steps at first. Set up automatic transfers so that cash gets saved before you even see it hit your checking account.

Managing Debt: The Savvy Way

Just paying the bare minimum amount due on your debts each month is basically letting them hang around forever. Those tiny minimum payments mainly just cover interest charges, not even making a dent in what you actually owe.

Even just £25 or £50 extra makes a huge difference in chipping away at those principal balances faster. It’s like putting a few extra quid in a tip jar each day – it builds up way quicker than you think. The shorter lifespan of the debt also means you’re paying less in total interest.

Target High-Interest Debts First

If you’ve got multiple debts to juggle, go after the highest interest rate one’s first with any extra payments. We’re talking credit cards, expensive loans, etc.

You can take low-interest loans like urgent doorstep loans and refinance those high-interest loans! Once you’ve knocked out the costliest debt, then you can spin that whole payment towards the next highest-interest debt using the same method. It’s called the “debt avalanche” approach, and it’s a killer for paying way less over time.


“Budgeting” sounds complex. However, creating a realistic budget as a young adult is low-key and one of the most liberating financial moves you can make.

Start by tracking your monthly income and all your expenses for a bit so you understand your cash flow situation. Categorise those expenses into needs (rent, minimum loan payments, utilities, groceries) and wants (eating out, Uber, entertainment, etc.). Make sure necessities are covered first, then allocate reasonable amounts for pleasures. From there, it’s all about identifying areas where you can trim fat and immediately paying yourself first with those savings.

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