So, you’re a freelancer. You think you’re living the dream after all, who wouldn’t love working in their pajamas? And yet even though you have the flexibility to work from home and make your schedule, your finances are feeling strained.
Don’t worry; we’ve got you covered. Here are 19 ways to cut back on expenses so that you can save up for that house by the beach!
| Takeaways |
|---|
| 1. Freelancing presents unique financial challenges for millennials aiming to purchase homes. |
| 2. The instability of freelancing income can make it harder to qualify for mortgages and save for down payments. |
| 3. Student loan debt is another hurdle for millennials looking to buy homes while freelancing. |
| 4. Flexibility and mobility associated with freelancing may lead some millennials to prioritize experiences over homeownership. |
| 5. Despite the challenges, proper planning, budgeting, and exploring assistance programs can help freelancers achieve their homeownership goals. |
1. Cut Back On Coffee
Coffee is the most popular beverage in the United States, and Americans spend more money on it than any other food or drink (including bottled water).
It’s not just a part of your morning routine; it’s a part of your culture. But when you buy coffee out every day instead of brewing your own at home and taking it with you, you’re wasting money.
Even if you buy one cup per day from an independent cafe a favorite for many Millennials you could save $80 a month by switching to making coffee at home and bringing it into work in a thermos.
That added up over five years would be enough for almost half the down payment on a median home in America!
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2. Cut Back On Food
If you’re feeling the pinch of a tight budget, there are plenty of ways that you can cut back on food spending without going hungry. Here are a few suggestions:
Shop at discount stores like Aldi, Lidl, and Walmart. These stores have lots of fresh produce at low prices (especially if you buy in bulk).
They also typically sell cheaper versions of products like laundry detergent and toilet paper. If you don’t feel comfortable buying all your groceries here yet, start with just one or two items per trip but give it time!
You may find yourself getting hooked on the lower prices and expanded selection these chains offer over other grocery stores.
Cook at home more often. This not only saves money but also helps keep calories down so that weight loss goals can be achieved faster! Plus cooking is fun too!
You can even try making meals from scratch instead of relying on processed foods as much as possible (though this is something even full-time working people might struggle with!).
Eat less meat–it’s expensive!
3. Go To The Library For Free Wifi
If you’re looking for free wifi, you can’t go wrong with the library. They have great wifi and lots of people who come in and use it as well.
You can also use your laptop there without having to buy anything or even create an account. The library is also a great place to meet new people since most people are there because they have nowhere else to go.
They have quiet areas where you can work or study too!
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4. Look For Alternatives To Private Health Insurance
You may also want to consider your options for public health insurance. If you’re a U.S. citizen, the Affordable Care Act made it possible for you to sign up for Medicaid if your income falls below 138 percent of the federal poverty level (FPL).
In addition, some states offer low-cost coverage through their own state health insurance programs, which you can apply for online or over the phone.
In addition to these options, check out what’s available through your employer and private insurers such as Blue Cross Blue Shield and United Healthcare.
If you work full-time in an office environment or get paid hourly while working at a restaurant or retail store there’s no reason why they should have all of the fun!
Finally, don’t forget about non-profit insurers like Aetna; they provide many different types of plans that might be more affordable than those offered by other companies out there who only care about squeezing every penny out of customers without taking into account their financial needs/wants (which isn’t good practice).
5. Reconsider Your Phone Plan
If you’ve been looking for a new phone plan and have been struggling to find one that works for you, here are some tips that may help:
Consider a cheaper plan with the same carrier. Some carriers offer plans where you pay less but get the same service as their more expensive plans.
For example, my carrier had an unlimited data plan that cost $60 per month, but they also offered an “unlimited” data plan for only $40 per month.
The catch was that it was throttled after 3GB and didn’t include tethering or international coverage but if I only used 2GB of data each month anyway, then this would be fine for me to use instead of paying extra for all those services I don’t need!
Consider switching carriers entirely. This is especially true if your current carrier has poor customer service or doesn’t offer any deals on their basic plans if so, why not switch over to another company where your needs will be better met?
Do some research online first before making any decisions though; not all companies out there are created equal!
Get rid of your old smartphone altogether by replacing it with something newer (and hopefully faster).
While this might seem like an expensive option upfront due to having no money saved up yet from all those freelance gigs mentioned above… well…
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6. Cut Back On Alcohol
If you’re a freelancer, chances are you don’t have a lot of disposable income. That’s why alcohol is one of the most popular ways to spend money and unwind after work (it’s also an easy way to make new friends).
But did you know that booze can be detrimental to your health? Not only does it cost an arm, but it also wreaks havoc on your body in more ways than one:
Alcohol is expensive. The average person spends $1,000 a year on alcohol alone that’s about $4 per day! If you drink heavily and often, even more, will go out the window.
And if you drink moderately but still feel like something is missing from life because of “intense cravings for alcohol” (how else would we describe our need for cocktails?).
Then consider cutting back before those cravings get out of control that way when they do strike again later down the road (as with any addiction), they won’t be quite so intense anymore…and hopefully neither will their impact on your finances either!
7. Work Out At Home Instead Of in A Gym
In addition to saving money on gym memberships, you’ll also save time by working out at home. Who doesn’t have a spare half hour or so? You can do it in your own time, without having to coordinate with anyone else and make sure they show up too.
You can wear whatever you want (or nothing at all) and feel free to sing loudly if that helps you get through the workout.
If you’re not quite ready for this level of commitment yet, start small: Consider getting a pair of dumbbells or another piece of equipment from which you’ll derive maximum benefit for minimum cost and effort, and then work your way up from there!
8. Be Smart About Your Groceries
You can save money on groceries if you’re willing to be a little more flexible in your shopping habits. Here are some tips that will help you save:
Buy in bulk. This is almost always cheaper than buying things individually, especially when it comes to non-perishables like canned items, toiletries, and cleaning supplies.
Buy the large size and split it up yourself or store the extras in your pantry until they’re needed again (or just make sure not to waste any).
Look for coupons and sales. Most grocery stores have weekly sales on certain items, so make sure you take advantage of those savings by stocking up when something’s on sale!
You’ll have less waste since nothing will go unused as quickly as before and who doesn’t love extra free money?
You can also look online for printable coupons from different manufacturers; sometimes these offer significant discounts on already discounted products!
Signing up for rewards programs at places like Kroger could also reward members with perks like discounts off certain purchases or even cashback rewards after spending a certain amount of money within their stores.”
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9. Pay Off Your Highest Interest Credit Card First
When you’re trying to pay down debt, it’s important to stay organized and keep track of your spending. This can be easier said than done, but some apps can help.
Mint is a popular one that allows users to track their expenses and set budgets for themselves. For example, if you have $100 in the bank but need $150 this month for groceries, rent, and utilities.
Mint will alert you when it’s time to take out more money from an ATM or transfer funds from another account so that everything adds up (and doesn’t exceed your budget).
It also has an “Emergency Paycheck” function that automatically withdraws funds from your checking account whenever a large bill comes due and deposits them into savings instead of letting them go toward paying down debt.
10. Start A Side Hustle To Make Extra Money
Side hustles are part of the modern American dream. People are working more than ever before, and that’s not going to change anytime soon.
If you want to keep up with the Joneses, consider starting a side hustle to make some extra money.
With a few hours of work each week, you can start making $100 per month or more from home and that’s just the start!
Your side hustle could help pay for your next vacation or even put down payment on your dream home someday. Here are 9 ideas for starting your side hustle:
11. Use A Savings App To Save Automatically
Set Up An Account With A Digital Bank Or An Online Savings App
There are many online banks and wallet apps that allow you to set up automatic transfers of money.
You can transfer the same amount of money every month, or whenever you want depending on your budgeting needs.
Some of these companies also offer different types of rewards if you meet certain conditions such as depositing a certain amount into the account each month or not having any overdrafts in the previous month.
The most popular one currently is Digit, but there may be others out there worth looking into!
Sign Up For Google Wallet To Pay Bills Automatically And Save Receipts
Google Wallet is also good for saving receipts electronically so you don’t need paper copies anymore!
Once signed up for Google Wallet through your Chrome browser (or any other device), simply search “Google Pay Bill” then choose which biller(s) from their list and enter how much money should be paid each cycle (usually weekly).
From there everything else happens automatically without having to worry about missing bills anymore since payments will come out automatically once the due date arrives regardless of being late payment penalty fees occur due to someone forgetting about paying until later because paycheck hasn’t come yet; no more excuses now.”
12. Ask For Raises And Higher Rates From Clients
You need to be prepared to ask for raises and higher rates from clients. The fact is, many small business owners are willing to pay you less than they should because they think you don’t know any better. It’s up to you to prove them wrong!
While there are plenty of factors that go into how much a freelancer will earn per hour or project, one thing remains certain:
If someone offers you an hourly rate lower than what other professionals in your field charge, it’s time for negotiation. You can get started by asking about the following:
- How long will this project take?
- What skills and experience do I need?
- What kind of client am I working with (a small start-up company or a multinational corporation)?
13. Consider Renting Out Your Spare Room Or One Of Your Closets On Airbnb
If you’re looking for a new way to make money, consider renting out your spare room or one of your closets on Airbnb.
It’s an easy way to make extra cash and it’s especially suited for millennials who want something fun and low-commitment that they can do right from their own homes.
You can start by listing your entire home on Airbnb, or just renting out one room in an otherwise vacant space.
You can also list things that you don’t use any more closets, storage spaces and even entire rooms are fair game!
Make sure you take pictures before posting anything online so people know what they’re getting into when they book an appointment with you through the site.
14. Make, Not Buy, Gifts For Friends And Family Members Every Year Instead Of Buying Expensive Gifts
In 2018, you would be crazy not to give handmade gifts this Christmas season. This is the perfect opportunity to use your creativity and upcycle things in your home that you no longer need or want, like old clothing or empty bottles of wine.
If there’s one thing millennials are good at, it’s being resourceful! And if there’s one thing they love more than anything else (besides Netflix and avocados).
It’s saving money on every purchase possible especially when it comes to gift-giving during the holidays!
15. Cook At Home More Often, Rather Than Going Out To Eat And Spending Money On Fancy Meals
If your goal is to be able to save money, cooking at home is always going to be cheaper than eating out.
Cookbooks and the internet are great resources when it comes to learning how to cook new dishes or make healthy meals. You can also save money on gas if you don’t have a car and walk/bike to get where you need to go.
You’ll also save time if you don’t have as far of a commute because you’re not driving all over town in pursuit of the best deals on food (and thus, the most expensive meals).
Plus, there’s no need for fancy clothes with food stains on them! And no need for utilities like lights or heaters either; just keep it simple and easy by cooking at home most nights!
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16. Don’t Pay Full Price For The Internet At Home; Shop Around For Prorated Prices
You can save a lot of money on your internet bill by doing some research and shopping around. Check out comparison sites like BroadbandNow or PCMag’s own Broadband Providers to see if you can get a better deal from another provider in your area.
If you’re already with a provider and want to find out if there are cheaper options, call up your current service provider and ask them if they have any promotions going on right now that might lower your bill (but be prepared to be told no).
And don’t forget to ask friends or family members if they know anyone who has found an awesome deal on internet service you never know how much money you could save by asking around!
17. Let Go Of Cable Tv And Learn How To Stream Content Online
You can save money by reducing your cable bill. The average American pays $103 per month for cable TV, according to the Consumer Reports National Research Center.
If you cut out that expense and instead use streaming services like Netflix or Hulu with an antenna, you’ll save an estimated $100 per month on average.
Use a streaming device like a Roku to access content online. You’ll need something to stream video from the internet onto your television.
Setting up a streaming device such as Roku works well for this purpose, as it allows users to watch movies from various online sources through their TVs.
It’s also possible to use other similar devices such as Apple TV or Amazon Fire TV Stick (which require subscriptions for some of their offerings).
Try out one of these free trials before signing up for any new service:
Netflix has a 30-day trial period where you can watch unlimited amounts of television shows and movies without paying anything at all;
After that first month ends, though, they’ll start charging you standard rates unless they’re able to convince you not only was what they offered worth it but also that they should get another chance at being your provider…
18. Stop Buying Cds And Dvds Everything Is Available Digitally Online Now
One of the biggest benefits of not buying CDs and DVDs is that your digital music collection can be transferred across devices.
You don’t have to worry about losing discs or scratched-up cases because everything is available online.
If you’re looking to get away from physical media, several different services allow you to stream content over the internet:
- Netflix
- HBO Now
- Spotify
With these subscription services, you can watch entire seasons of TV shows and film new releases without ever having to leave your home.
And since this is all happening in the digital realm, you won’t need to worry about annoying shipping costs either.
19. Shop Around For Cheaper Medical Insurance Options
The cost of medical insurance is another area where you can save money. Let’s say, for example, you’re currently paying $500 per month for a plan with an annual deductible of $4,000.
You might want to ask your current provider if they offer any special promotions as well as your employer if they have any better options available through their group plans.
It also wouldn’t hurt to ask friends and family if they have any suggestions on cheaper options.
In addition, it’s always a good idea to shop around via internet searches to compare prices and features just be sure not to enroll in something without reading the fine print first (and make sure there aren’t hidden fees).
Conclusion
As you can see, there are many ways to save money and build up a savings account, even if you’re living paycheck-to-paycheck.
If you’re not making enough money yet to buy a home or start saving for retirement, consider taking on some side gigs or asking your boss for a raise.
You might also want to think about moving in with roommates or renting out your extra rooms on Airbnb so you can earn some extra cash each month.
But whatever you decide to do, don’t beat yourself up over not being able to save right now just focus on putting more money away each month than the month before!
Further Reading
Here are some additional resources for further reading on the topic of millennials and home buying:
Millennials, Freelancing, and Home Mortgage: How to Save and Buy a Home: This article explores the relationship between millennials, freelancing, and saving for a home mortgage, providing tips and insights on how freelancers can navigate the home buying process.
How Millennials Are Buying Homes: Trends and Strategies: BuzzFeed presents an engaging piece on the trends and strategies employed by millennials when purchasing homes, shedding light on their unique approaches and preferences.
Millennials Are Buying Homes Later: Understanding the Shift: This article from Times Online discusses the trend of millennials delaying home purchases, providing insights into the factors contributing to this shift and its impact on the real estate market.
Frequently Asked Questions
What Is Freelancing?
Freelancing is the practice of taking on short-term projects or assignments, typically for multiple clients at one time.
Freelancers typically have a special skill set, such as design or writing, and they can perform this work when it’s needed for a specific project.
How Does Freelancing Differ From Regular Employment?
In a traditional job, you work full-time for one employer, who pays you an agreed-upon salary each year.
In a freelance position, you’re paid by the hour or project instead of receiving a set salary.
You can choose how much work you want to take on at any given time and fill out your schedule with gigs that match your skills and availability.
Why Are Millennials So Attracted To Freelancing?
Millennials are known for being ambitious and independent and they want the freedom that comes with freelancing.
Millennials also value flexible schedules and having control over their work environment.
When millennials are in charge of their schedule, they can make decisions based on what works best for them instead of having someone else dictate those choices for them.
How Do I Get Started?
Start by coming up with some skills that you have and can offer to someone else.
Then, find people looking for those services there are plenty of ways to do this, including posting on forums or social media.
Once you’ve found someone who wants your help, ask them what they need done and figure out how much they’ll pay for it.
What Are Some Common Types Of Freelance Jobs?
There are many different kinds of freelance jobs anywhere from graphic design to writing to programming but they all have one thing in common:
They allow you to make money without having an employer who pays you every two weeks or so. Instead, each person pays for their services by hiring freelancers like yourself!
Costantine Edward is a digital marketing expert, freelance writer, and entrepreneur who helps people attain financial freedom. I’ve been working in marketing since I was 18 years old and have managed to build a successful career doing what I love.