Saving money when you’re single can seem more challenging on the surface. Without a significant other to split groceries, housing and transportation expenses, the weight of those financial necessities lies solely on you.
But what if I told you there are actually some super cool upsides to tackling finances as a single person?… Money saving can become a superpower, because you are in complete control.
Without needing to compromise on lifestyle choices where you live, career moves, or how you spend your money, you can attack financial goals with laser focus.
Here are 8 tips for saving more money when you’re single…
1. Surround yourself with positive influences
That famous saying, “you become the average of the 5 people you spend the most time with” is overwhelmingly true. The company you keep has a significant impact on your attitude, habits, and success with money!
According to this study published in the Journal of Molecular Psychiatry, our social networks may influence our levels of depression. Happiness and loneliness can also spread through our relationships.
Makes sense. But it’s a powerful reminder.
So how can you use this phenomenon to your benefit?
Easy! Just surround yourself with the kinds of people you’d like to become more like.
If you hang around barflies, you’ll become a barfly. But if you spend the majority of your time with highly motivated, positive and responsible individuals, some of their best qualities could rub off on you.
To find these kinds of friends, don’t be afraid to put yourself out there. Join local social clubs, talk to folks at the gym, or even look for an online money group. Saving more money as a single person is easier if you do it alongside a good group of friends!
Bonus- Don’t forget to join the HTM Facebook Group. It’s full of money savvy individuals who love to help each other navigate financial challenges and share money saving tips!
2. Meal prep for one
It’s so tempting to order that quick Doordash meal, or get take-out from your favorite place down the street. But dang, all those “quick 20 bucks” meals add up to hundreds, if not thousands of dollars that can be saved.
Starting to cook more at home is one of the best things you can do if you want to save more money as a single person. It’s far healthier, and significantly less expensive.
The average meal cost at restaurants and takeout places are ~$16. But home cooked meals on average cost only ~$4.
That’s a 5x price difference!
If cooking every night feels like too much of a time suck, try getting into meal prepping. When you meal prep, you cook your entire week’s meals on one or two days each week. Because you’re preparing food in bulk, it’ll save you time and money!
For adventurous foodies that want a lot of variety, start following frugal cooking influencers like Budget Bytes or Struggle Meals. They show you how to cook amazing meals for a great value.
Whatever your cooking style is, get in that kitchen and save extra cash!
3. Rethink your transportation
As a single person, the full weight of car costs are on you. And boy are they hefty!
Every time you turn the key (and even when you don’t drive at all!), cars suck away dollars from your paycheck that could otherwise be saved.
The average American spends ~$9,300 annually to own a car. If you think that sounds crazy, it’s because it is!
Between car loan payments, insurance, gas costs, and maintenance, it’s one of the biggest expenses in your budget.
Now, we’re not saying you should ditch your car and bum rides everywhere (although you certainly could for a few years and sock away a quick little nest egg). Instead, we challenge you to start making more intentional decisions when it comes to transportation.
First, driving used cars that you can buy with cash is going to be the best financial choice. You’ll be letting someone else take that massive depreciation hit for you when they drive it off the lot, and you won’t have to pay interest on a car loan.
If you can’t afford to buy a used car outright, that’s ok. Financing a used car will still likely be a better move for you than buying a new one in most cases.
As for driving habits, try biking or walking for short trips to save on gas and put less wear and tear on your vehicle. Carpool if you can (it’ll make your commute suck less), or try public transportation a couple times a week if you live in a city with a decent metro option.
Sometimes it might even be cheaper to Uber to your destination than to drive (especially if there’s big tolls and high parking costs)!
Long story short – don’t fall into the habit of assuming your car is the easiest or cheapest way to get around. There are a ton of frugal alternatives which make a massive difference to the amount of money you save.
4. House hacking
It’s hard to share your living space if you’re accustomed to being alone. But what if I told you living with someone else could put some serious money in your pocket?
House hacking is traditionally when you rent out a part of your primary residence while also living there. They pay you rent, and you get to build equity in your home with that rental income.
It’s a great way to reduce your monthly housing expenses, and to turn your primary residence into an investment.
A few common house hacking scenarios:
- Buy a duplex or triplex: You can live in 1 unit and rent out the others.
- Rent a room to friends in your house: If you own a house with multiple spare bedrooms you can collect income by renting those out.
- Building an ADU: For larger properties zoned accordingly, you could build a small unit in your yard as a rental. You’ll collect rent while you live there, and also increase the property value when you sell it.
If you’re a single renter and don’t want to buy a home, that’s OK too. You can still save money on housing costs by pooling money with roommates.
Instead of renting a one bedroom apartment, you could rent a 3 or 4 bedroom house with some friends (or strangers you’ve thoroughly vetted). You’ll have access to backyard space, a full kitchen, a basement, or even a deck and pool!
While sharing spaces can be less than ideal, this short term sacrifice can help you to reach some of your biggest money goals more quickly. Plus, then I get to live out my “New Girl” TV fantasy life vicariously through you!
5. Hit up thrift stores!
Have you ever seen this “dude apartment meme?” 👇👇👇
I used to laugh at this guy… until I realized that he probably has more money in his 401k than I have to my name.
Decorating a home with a partner can be a major compromise. But when you’re single, you can unleash your inner tight ass without anyone judging you!
Jokes aside, you can create the cutest, most aesthetic home on a budget with a little bit of creativity and patience.
Another awesome frugal hack is buying used clothes at thrift stores. You don’t have to feel judged or worried about what others think – nobody needs to know where you got your get up from. Or you can just wear it as a badge of honor.
Next time you have a spare hour, explore your local Goodwill for clutch discount finds.
6. Max out that 401k
As a single earner, understanding your tax bracket is really important.
One of the best ways to save more money as a single person is to take advantage of tax advantaged retirement accounts, like your 401k or IRA.
For every dollar you put in these accounts, you’ll essentially lower your tax burden for the current year. This lets you put away more money.
For example, let’s say your income is $90k per year, and you’re in the 22% federal tax bracket. Putting $10k into a 401k plan means saving $2,200 in taxes.
Yes, eventually you will have to pay taxes on 401k withdrawals. But, in the meantime all that money will grow into a massive retirement nest egg.
If you’re new to investing, check out our beginners guide, as well as our quick intro to buying index funds.
Super savers: Already maxed out your 401k? Here’s where to invest next…
7. Take little steps
As a single person it’s tempting to think “I’ll start saving when I meet the right person. It’s too tough to do it alone.”
But that mindset will delay your financial progress years, or decades. Plus, it could even make it more difficult for you and a future dream person whenever you connect with them.
The most important part is getting started.
No one is expecting you to save a million dollars overnight. But you can save $1 tonight. And $1 tomorrow. And the day after that, and the day after that…
The truth is that at its core, personal finance is more about those small consistent efforts compounding over time into something greater.
Developing good money habits, as simple as they might seem, can get you a good chunk of the way there. NOW is the best time to start saving and investing, regardless of your relationship status.
Here are the 7 money gears we created if you’re not sure where to start. They lay out the basic order of operations for what to do with your money first.
8. Don’t compare yourself to others
Comparison is not only the “thief of joy.” It steals your money too!
Sometimes, we spend money not for us, but for other people. We see someone with a perfect Instagram kitchen, so we find ourselves itching to replace our old cabinets with sleeker, modern looking ones.
Watching friends traveling to a different country every single month makes us want to get out of our town and buy exotic drinks on a beach.
But the truth is that spending money to “fit in” with the people around us almost always does more harm than good. It might feel nice for a fleeting moment, but it doesn’t build lasting joy in our lives.
Behind the scenes of most people’s lives is a mountain of credit card debt, overdraft fees, car loans, and house poor-ness. It’s actually quite sad to think about!
Anyway, to live a happier and richer life, stop comparing yourself to others.
Detach your idea of success from other people’s ideas of success. Figure out your own values, what makes you feel truly fulfilled, and focus your dollars on those things.
You don’t need to spend money to get people to like you. People already like you. I promise.
In fact, being more frugal and authentic will attract others of the same type.
The Bottom Line:
If you’re single, now is the time to get your finances together and figure out ways to start saving more money. With the freedom to control 100% of your money choices, you can catapult your money game to even greater heights!
Evaluating your biggest living expenses like cars and housing, as well as taking advantage of tax-advantaged accounts will help you build a sizable next egg over time. You’ll become more independent, resistant to financial setbacks, and be in a better future position if/when you do meet the love of your life.
Everything you need to save more money as a single person is already inside you. You’ve got this! 💪
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