Living Alone Guide Part 11: Money Management Basics

Where does all my money go?

After I started living alone, I was shocked when I saw my first credit card statement. I thought I didn't spend much... but where did it all go?

That's when I realized: money disappears if you don't manage it. Here are my essential money management tips for solo living.

1. Know Your Situation

Track Income/Expenses

First, understand your current situation:

• Income: After-tax salary, side income, etc.
• Fixed expenses: Rent, utilities, phone, insurance, etc.
• Variable expenses: Food, transport, shopping, etc.

Average Solo Living Expenses (Reference)

Category	Amount
Rent	$800-1,500
Utilities	$100-200
Phone/Internet	$50-100
Food	$300-500
Transport	$100-200
Others	$100-300
Total	$1,450-2,800

2. Create a Budget

The 50/30/20 Rule

Simple budget guideline:

• 50%: Needs (rent, utilities, food, transport)
• 30%: Wants (dining out, shopping, hobbies)
• 20%: Savings/Investments

If 20% savings is hard, start with 10%. That's 100 times better than 0%.

Category Budgets

Set category limits at the start of each month:

• Food: $400
• Transport: $150
• Shopping: $100
• Entertainment: $100

3. Track Your Spending

Why Bother?

• See where money actually goes
• Spot unnecessary spending
• Helps change habits

Easy Ways to Track

• Apps: Budget apps with auto-categorization
• Card statements: Review monthly in banking app
• Keep it simple: Even just tracking big expenses helps

4. Saving Tips

Cut Food Costs

• Reduce delivery orders (delivery fees add up)
• Shop during discount hours at grocery stores
• Meal prep (batch cooking)

Audit Subscriptions

• Cancel unused subscriptions
• Consolidate similar services
• Annual plans are usually cheaper than monthly

Avoid Impulse Buying

• Add to cart and wait 3 days
• Ask: "Would my life suffer without this?"
• Interest-free installments are still spending

5. Start Saving

Automate Savings

• Set up auto-transfer on payday
• Keep savings in separate account
• Treat it as money that doesn't exist

Build Emergency Fund

• Goal: 3 months of living expenses
• For unexpected illness or situations
• Start small but start now

Save $100/month and you'll have $1,200 in a year. Starting is half the battle!

6. Bad Habits to Avoid

• Credit card minimum payments: Interest explosion, avoid at all costs
• Cash advances: Only for true emergencies, not habitually
• Reckless installments: Total ends up costing more
• Borrowing to repay debt: Start of a vicious cycle

7. Money Management Checklist

Start of Month

• ☐ Set this month's budget
• ☐ Verify auto-savings transfer
• ☐ Check recurring payments

End of Month

• ☐ Review spending
• ☐ Check budget overruns
• ☐ Adjust next month's plan

Wrap-up

Money management is a habit. It's annoying at first, but once you get used to it, it gets easier. The key is not perfection - it's starting.

Next up, we'll cover what to do when you're sick. Being sick while living alone is really tough...