According to a recent analysis by Pew Research Center, 32 percent of people ages 18-34 are still living with their parents and just under 32 percent are living with a spouse or partner. That leaves about 36 percent on their own.
When one adds up the cost of living in major cities, record level amounts of college debt (more than $1.3 trillion), and the entry-level wages for those just starting out, it’s no wonder many young adults are struggling to make ends meet.
If this feels and sounds like your life, here’s where you can start to take control and build some financial stability:
- Sharpen your budgeting skills: The best way to create financial stability is to budget your money. This means giving a job to every dollar you earn, planning for “rainy days” and tracking your progress.
- Do the hustle: Get a side gig. This could be a formal second job, but doesn’t have to be. Get creative. Build or make things and sell them. Walk dogs for up to $30 an hour. Shop for others – in some cities, you can earn up to $65 an hour!
- Split the high cost of living: Affordable rent is about 30 percent of your gross income. With the average cost of rent at $1,059 for a one-bedroom in major cities, you’d have to earn $42,000 per year.
Not there? Find a roommate or two. Be imaginative: a professional house/pet sitter can make $60 a day and live rent free!
Whether you need to pay off student loans or other debt, save for the future, or simply pay your rent and eat regularly, these steps can help you get there.
Shannon Doyle, CFC®, is a Certified Financial Counselor at LSS Financial Counseling, which works with Everence to provide budget and debt counseling.