Financial Tips Start with the Mattress?
Growing up, if anyone told you there might be a need to set up a savings plan for your mattress, you’d have laughed them off. Isn’t it made from just foam? How expensive can it get? These are questions you might be asking at the moment.
However, a recent tweet of ours showed that many young adults were shocked by the cost of a mattress. Apparently, a good night’s sleep can cost a fortune—depending on how good you want it.
Why are we so focused on mattresses? There’s a strong relationship between good sleep and your finances. We wrote about that here. So, aside from the fact that they can be expensive, there’s a case for avoiding the cheap ones. In essence, you need to save for a good mattress while you build up for rent. Don’t forget the bed frame while at that.
Now we might just be overstating the price of mattresses. However, the fact remains that furnishing your house a young adult comes at a good cost. Hence, before you go on to rent a place ensure you have a list of the important things. Speak to friends who have settled down already—you just might not need that dining table.
- Identify key items by speaking to older friends
- Give yourself time to save. For example, 12 months.
- Outline the total cost of items and mark that up by 15%*
- Start an automated saving plan to meet the target amount
Consider Cost Sharing
From mutual funds to vacation plans, pooling your funds with others has always proved to be one of the top financial tips. The same applies to handling costs as a young person.
Starting with food items, you should consider monthly bulk purchases with friends. Then, have someone do the shopping on your behalf. That way, you save time and take advantage of bulk discounts. Don’t worry, even billionaires love discounts.
Another area to consider shared costs is with flats. Having flat mates can be tricky so you should consider the following tips:
- Be clear on the type of flatmate you need
- Arrange a meeting to discuss your preferences
- Ask questions about their life, their views and responses to certain scenarios.
In the end, you want flatmates who are decent, diplomatic, open and kind. For more tips on choosing a great flatmate check out this psychologist’s guide.
Invest in Micro-courses
With the fast pace of today’s world, it’s hard to set time aside for long-term courses. Regardless, the same world still demands that you grow and deliver magic. How do you make that happen? There’s no perfect answer.
However, we suggest that you set out a quarterly learning plan. For example, if you have a skill in mind to learn, set a target of dedicating your weekends in the second quarter of the year to that.
This approach will help you save up for the course in the first quarter. Also, your schedule will be prepared to handle the study demands. These courses range from online classes to professional certifications.
Start a quarterly savings plan for your micro-courses here.
Get Started with Investments
Don’t worry, it’s not as complex as you might think. The summary of building a great portfolio is to have a number of investments that give you worthy returns.
There are extensive guides about how to get started. However, we have just three financial tips on this for you:
- Start easy with a savings plan for key life items like your rent.
- Set up an emergency fund. We make that easy with just 3 steps here.
- Invest in mutual funds. Here’s a guide about how they work.
You’re off to a great start champ. If you have any questions, drop a comment. We’ll reply. Also, don’t forget to share this with your friends.