Basic Strategies for Cost of Living Relief: A Guide for Young Professionals

Young professionals across the globe are feeling the pressure from an increasingly higher cost of living. As a reaction to soaring rent prices and rising grocery bills, many people are looking for ways to supplement their income without giving up their lifestyle. If you’re someone finding it hard to balance the books in the current economy, you’re not alone.

In times of economic downturns, the appropriate measure is to turn to textbook financial strategies to help you come out the other side unscathed. Numerous strategies as well as help from the experts can shift you into a money-wise mindset, helping you make more informed choices.

Here are 6 strategies to give you financial relief in a challenging market:

1.Get Help from a Financial Consultant

When it comes to managing your finances, it can be tempting to try to handle everything yourself. But with the complexities of today’s economic landscape, getting advice from a professional can be a game-changer. For instance, you could opt to work with a reputable financial consultant – you can find one near you by using local directories like Best Financial Planners. Financial consultants like these can help you track your spending, save strategically, and invest wisely. They break down your expenses and identify areas where you can cut back, helping you set attainable goals without giving up too much. Plus, they can steer you toward better budgeting tools and investment options that align with your financial situation.

Where many people go wrong is saving financial consultancy for when they’re wealthy and have money to invest in assets, but many consultants work with people with low or average incomes. This is a prime time to seek this type of support because they can create practical and customised plans for managing money and helping you stretch your dollar further.

The best part? Many consultants offer free initial consultations and inexpensive packages geared towards young adults just starting their financial journeys. It’s a move that can set you up for long-term success, not just short-term relief.

2.Follow The 50/30/20 Rule For Budgeting

Budgeting might be a word synonymous with boring for some, but the reality is that it’s one of the simplest things you can do to take control of your money and reduce stress. Forget the complicated and outdated tools and say hello to the 50/30/20 Rule — an easy-to-use, modern budgeting framework that more and more young professionals are implementing.

It goes like this: 50% of your income should go to necessities such as rent, utilities, groceries etc. A full 30% goes to discretionary spending (whether that's dining out, shopping, entertainment or golf). The last 20% is for you to save or pay off debt directly.

This way you keep your spending in check, whilst saving for the future without depriving yourself of life's pleasures. The one great aspect of the 50/30/20 rule is its versatility — it can be adjusted to fit your current financial needs. If your rent is 55%, you can always adjust the percentages up or down to fit your needs. Remember — budgeting doesn’t have to be restrictive. Think of it as a tool to help you live smart and stress-free.

3.Embrace Side Hustles for Extra Cash

We’re living in the age of the gig economy, and side hustles are more common than ever. If your day job isn't cutting it anymore with the rising cost of living — how about looking into side gigs? Whether you are doing freelance writing, freelance graphic design, UberEats driving or utilising platforms like Fiverr or Upwork — there is always extra cash to be made in your spare time.

Additional work on the side can supplement your income while allowing you to work on your own terms. You don’t need to overcommit either. Just pick something that aligns with your schedule and interests. Even working a few extra hours a week could bring in enough money to help cover unexpected expenses or give you a little more breathing room in your budget. An additional job can also be a great way to learn new skills, meet new people and discover new passions. Who knows? What may start off as a side hustle could potentially turn into a dedicated passion or future career.

4.Cut Unnecessary Subscriptions and Streamline Your Spending

In the age of subscription services, it’s easy to sign up for the full menu of services without realising how much they’re actually costing you. Whether it be subscriptions to streaming services, gym memberships or delivery apps — all these little monthly syphons can quietly erode your budget. Now is the time to take inventory of all your subscriptions and think hard about which ones you use or need.

Start by reviewing your bank statements for all recurring charges. Then, ask yourself if you’re getting value out of each one. If you haven’t used that fancy streaming service in months, cancel it. If you can, switch to free music or video services like YouTube, or bundle services to save on costs.

You also may want to reevaluate how much you are spending in general on a day-to-day basis. Can you make coffee at home instead of buying it every morning? Small, incremental changes add up and can provide near-immediate financial relief without making you feel like you’re giving up too much.

5.Automate Your Savings with Micro-Saving Apps

With never-ending expenses, saving money can often feel impossible. However, the technology at our fingertips has tools that make saving easier and less painful. Micro-saving apps, like Acorns or Digit, round up your daily purchases to the nearest dollar and stash the difference into a savings or investment account. You won’t even notice the small amounts being saved, but it can make a big difference over time.

These apps are changing the game for young professionals who are looking to build a financial cushion. Even if you’re putting away just a few dollars at a time, it’s still progress, and it helps establish the habit of saving. These apps harness automation, which takes the pressure off, allowing you to save without even thinking about it. Before you know it, you’ll have a solid nest egg or the beginnings of an investment portfolio.

6.Consider Downsizing or Finding Roommates

Last but not least, rent is often the largest single expense for young professionals. And with rent prices soaring through the roof, it’s worth considering downsizing or splitting costs with roommates. Sure, this may not be for everyone, but it can be a great financial move if you’re open to it. Plus, living with others can come with other perks like shared utilities and even built-in company if you enjoy a social environment.

If you prefer going it solo but are struggling with high rent costs, consider downsizing to a smaller apartment or moving to a more affordable neighbourhood. While moving can be a hassle, the amount you’ll save on rent could make it well worth the effort. Alternatively, explore options like house-sitting, subletting (with your landlord’s permission), and maybe even some old-fashioned rent bartering in exchange for services like pet-sitting. There’s no one-size-fits-all solution, getting creative with your housing situation can offer some much-needed financial breathing room.

Surviving the rising cost of living as a young professional requires a savvy mix of smart financial habits, flexibility, and an open mind to explore new strategies. Whether you’re seeking advice from a financial consultant, doing some work on the side, or just cutting back on unnecessary expenses, small steps can make a big difference.

Remember, you don’t have to sacrifice your quality of life — it’s about making mindful choices and taking control of your financial future.