Financial Experts: 9 Keys to Affording Basic Living Expenses
Written by
Laura Beck
Edited by
Jenna Klaverweiden
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With inflation on the rise, it can feel like just getting through the day is tougher than ever. The internet is filled with advice on how to save money and cut costs, but it can be hard to know what’s worth following and what’s worth forgetting.
Thankfully, GOBankingRates spoke to some money pros for their best tips on how to make ends meet — even when it feels like it’s impossible. Here’s what they said are the keys to affording basic living expenses.
Make a Budget (and Stick To It!)
First things first — you need to know where your money’s going.
Satayan Mahajan — CEO of Datalign Advisory, an AI-enhanced platform matching consumers with leading financial advisors — put it like this: “First and foremost, create a budget and make a financial plan. Planning can alleviate stress and put you on the path to financial security. Getting a realistic view of what you have coming in and going out will go a long way. A vital reality check!”
Cut the Small Stuff
Those little expenses add up fast.
“Think about the $7 per day on coffee. That adds up to $2,520 per year that could go into a high-yield savings account or Roth IRA,” Mahajan said. “Still savor these experiences occasionally, but do it in a thoughtful way and determine if you really need it daily or if less frequently will still satisfy you so you can save more.”
Get Some Expert Help
Think financial advisors are just for rich folks? Think again.
“We have to bust the myth that only high-net-worth individuals can work with a financial advisor. There are experts that specialize in a range of financial situations. Everyone deserves to have quality financial advice,” Mahajan said.
Save For a Rainy Day
An emergency fund is your financial safety net. Mahajan suggested starting small.
“Begin with a small savings goal and gradually increase it to cover several months’ expenses. Treat your emergency fund as a non-negotiable bill you must pay monthly,” he said. “Automating your savings can help you stick to this commitment. $25 per week into your emergency fund adds up quickly.”
Don’t Leave Free Money on the Table
Kyle Enright, president of Achieve Loans, said to grab those employer perks.
“Take advantage of 401(k) programs with an employer match. It’s essentially free money, which, when combined with your own contributions, can significantly boost your retirement funds,” he said.
Tackle Housing Costs
Whether you rent or own, there’s help out there.
“If you are struggling to make your mortgage payment, contact your mortgage servicer. They may offer help in the form of loan forbearance, which means asking for more time to pay,” Enright said.
For renters, there are options as well. “If you rent, individual states, counties and cities have rental assistance programs in place,” he said.
Make Extra Cash
A side hustle can make a big difference in your finances.
“Retail and food service companies offer very good hourly rates for flexible part-time jobs, but you can also develop your own work if you’re organized and motivated,” Enright said. “You may be able to teach something — gardening, crochet, languages — or put computer skills to use helping others handle maintenance and updates.”
Watch Out for Debt Traps
It’s also important to watch out for debt traps. Enright warned about one particularly nasty type of loan.
“Whatever you do, avoid turning to a payday loan. They carry an annual interest rate of 400%, and many borrowers end up ‘rolling over’ … That means borrowing the loan again, rather than repaying it,” he said.
Keep Learning
Personal finance expert Erika Kullberg from Erika.com said that managing money is an ongoing process.
“Regular reviews and check-ins with your budget are key here — this will help you stay motivated and focused on reaching your budgeting goals,” she said.
She also pointed out how debt can mess with your head. “While it might seem somewhat unrelated, the anxiety of a large debt looming in the background can absolutely have an effect, lowering your ability to manage stress when it comes to budgeting for any expense,” she explained.
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