If you’re not living in San Francisco, you might be surprised to find out how expensive it can be to live here. The costs of rent, food, gas, and other necessities are far above the national average.
If you want to save money while still being able to enjoy the Bay Area, check out Jim Robertson’s tips on saving money in the San Francisco Bay Area below!
Finding a job you love
While a passion may not always be found at first, it is important to find a job that you will enjoy. When it comes to finding a job, there are some perks that you can try.
Internships are great opportunities to make connections and get your foot in the door while learning valuable skills at the same time. Volunteering can also be a great way to gain experience in different industries, work with new people, and make yourself more marketable.
Saving 20% of your income
An important way to save money is to make a conscious effort to keep 20% of your income aside and not touch it. That money is off-limits, meaning that you can’t use it on anything else until after a specified time period.
These self-imposed restrictions should teach you discipline as well as force you to find creative ways to make ends meet without dipping into your savings.
Building multiple income streams
You should create a sailing strategy by diversifying your income. Create multiple streams of income, not just a single stream (like only renting out apartments). Your sailing strategy should include side gigs, part-time work and entrepreneurship.
By diversifying your income, you will never be reliant on any one source of income. If that one source is lost, you can still make up your lost earnings by relying on another stream of income.
Being debt free
As you reach a point where you’re ready to pay off your debt, you’ll need to budget more of your money to paying it off. This will likely involve giving up some of the luxuries that are not important to you.
If you feel like your life is already restrictive because of financial constraints, this will be hard. There are many people who live happy lives without accumulating large amounts of debt or spending beyond their means.
Pay yourself first
Paying yourself first means that you should automatically transfer a portion of your paycheck to savings before you pay any bills. It can take some time to get used to this lifestyle, but it could help with debt, saving for retirement, and life goals.
Start with 1% or 2% of your paycheck going into savings before anything else happens. This can be tough if your budget is tight, but don’t let this obstacle stop you from trying it out! Your goal is to make saving as automatic as possible.
Budgeting doesn’t have to be painful
No matter what your income level, you should be budgeting. If you want to save money, you need to know where it’s going so that you can minimize spending on certain things and increase others. Budgeting doesn’t have to be painful!
There are plenty of easy-to-use apps out there (such as Mint) that make keeping track of your finances a breeze!
Prioritize retirement savings now
Saving for retirement is not just a future expense–it’s a current one. Putting off your retirement savings only compounds the problem. Even if you have time, it will be harder to catch up when you’re older and less likely to be able to save as much of your income.
You’ll also want to take advantage of any employer match program so that you don’t end up forfeiting free money from your company! If you don’t know if this applies to you, speak with HR or an accountant at work.
It’s never too early to start saving, but it can be too late if you wait too long!
Invest as much as possible while you’re young
You want to make sure you’re investing as much as possible while you’re young so that compound interest can do all the work of making your nest egg worth more.
Whether it’s buying stocks, getting a money market account, or even investing in real estate, this is the time when it will be easiest to get ahead.
If you’re considering a mortgage loan and want to save up some cash, consider saving with an IRA CD instead of waiting until retirement. With IRAs CDs, there are penalties if you withdraw before the agreed-upon date and your money compounds over time at higher rates than savings accounts and checking accounts.
Join a community of like-minded people
As a high-performing professional, you’re always looking for new avenues to learn and grow. With Jim Robertson’s informative webinars, workshops, and coaching sessions, you’ll get an intimate look into what it takes to become successful from experts on topics like leadership, negotiating skills, financial planning, and more.