I live with my parents and work a remote job. From student loans to ‘fun money,’ here’s where every penny of my paycheck goes.

• Hannah Kennedy saves money by living with her parents, which has significantly reduced her living costs.
• Living rent-free allows her to focus on savings, student loans, and building an emergency fund.
• She also avoids spending on the gym, beauty, coffee, books, and clothes to maximize savings.

For many recent grads, striking a balance between wanting to enjoy their newly independent lives and being financially responsible can be tough.

After graduating from college in May and starting remote work as a social media fellow at Business Insider, I knew I wanted to prioritize saving as much as possible.

I was able to move back in with my parents in Milwaukee, which has helped decrease my living costs significantly.

My parents don’t charge me for rent or groceries

I’m also able to stay on my family’s phone plan. Living with such minimal expenses is something I won’t have the luxury of doing again, and I wanted to seize the opportunity.

Even with large expenses out of the way, I still had to be realistic about a budget that would meet my savings goals. I want to build decent savings and contribute to a Roth IRA and an emergency fund. I also want to pay off my student loans as quickly as possible.

Right now, I’m making around $2,500 a month after taxes

40% of that is directly deposited into a high-yield savings account, and another 20% goes toward my student loans, of which I have $30,000 left to pay.

I put $300 in my Roth IRA, $100 into an emergency fund, and $100 toward investments in my Robinhood account. I invest in some ETFs, fashion stocks, health and tech companies, and silver and gold.

This leaves me with around $500 left over a month, some of which I deposit into a savings account specifically for travel. The rest is what I like to call my “fun money.”

My “fun money” is for discretionary spending and miscellaneous expenses. From eating out with friends to gas money and subscriptions, I set aside around $100 a week for “fun” purchases.

Most weeks, I don’t spend this entire amount, putting the leftover money into my savings account. Even when I do spend my fun money, there are six things that I don’t spend it on.

1. I forgo gym memberships or expensive fitness classes for at-home workouts

I’ve found that at-home workouts are just as beneficial as going to a gym, more cost-effective, and conveniently fit into my schedule.

A monthly membership at my local yoga studio costs $85 for eight classes, or $125 for an unlimited pass. This would eat up nearly a quarter of my extra spending money, which I’d rather put toward other experiences or into savings.

I love Move With Nicole‘s weekly workout plans, which are free on YouTube. I’ve also been running with my dad, playing pickleball at local courts, and kayaking with my mom.

2. I only splurge on beauty treatments for special events

Unless it’s a special occasion, I rarely get my nails done or wax my eyebrows. I cut my hair way less often than I’d like to admit, and it’s never been dyed or color-treated.

If I were to get a manicure every two weeks, I’d be spending $80 a month on nails alone. This does not include pedicures, eyebrow waxes, lash lifts and tints, and hair touch-ups, among other treatments.

I understand wanting to spend money to look and feel your best (I can’t deny that having a fresh set doesn’t make me feel way more put together), but for now, I’ll stick to tweezing my own brows and painting my own nails.

3. I keep my self-care routines minimal and don’t buy multiples of products

I use minimal products in my daily life, keeping only one of each product I use. Aside from saving money, I’m also on a mission to reduce my plastic consumption, and these goals work well together.

My skincare routine consists of a charcoal face wash bar, a $15 daily moisturizer from Vanicream, and SPF.

For the shower, I have shampoo and conditioner bars, a bar of soap, and a razor. I don’t buy high-end skincare or makeup products, and I only replenish when the product is completely finished.

4. I skip out on daily coffee runs and make a green tea in the morning

A 2024 study by Toast found that the average cup of coffee in the US costs $3.08. If Americans get a cup of coffee on their way to work every morning, that’s more than $15 a week, or $60 a month, for coffee.

As a certified non-coffee drinker, I’ll admit this is a simple luxury I can forgo spending on. Although I enjoy tea in the morning, I can’t rationalize paying for a basic drink that I can easily make at home. And, it makes meeting a friend at a café for a cuppa all the more exciting.

5. I almost always borrow books from my local library or buy them secondhand

I can’t tell you the last time I spent money on books. Most of the time, I use the Libby app, which allows me to instantly borrow ebooks using my library card and download them to my device. I also swap books with neighbors and friends or visit secondhand bookstores.

I love to stroll through Barnes and Noble as much as the next bookworm, but in this economy, I can’t justify buying brand-new books.

6. My wardrobe is full of clothes bought on sale or from thrift stores

If you ever go to the mall with me, you’ll most likely find me at the clearance racks.

Not all of my clothes are bought on sale, and I do believe in investing in high-quality pieces that will last me a long time. I try my best to only buy clothes from quality brands when I can find them at a discount.

I enjoy thrifting, buying clothes on resale sites, and shopping on brands’ secondhand pages, like Patagonia’s Worn Wear.

I intend to stay at home for the foreseeable future

Living with my parents especially makes sense since I’m fully remote. When the right opportunity arises, whether that be a potential roommate to move in with or a cool job across the country, I’d be more than willing to consider moving out.

Even when that time does come, you most likely still won’t catch me spending money on these six items.

Read the original article on Business Insider

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