Advice on budgeting and life long-term recommendations
Action Plan
1. Boost Income
- Freelance Diversification: Explore fields like content writing, data analysis, or teaching online (language skills or tutoring). Platforms like Fiverr, Upwork (despite current challenges), or LinkedIn Learning could help.
- Skill-building for Transition: Dedicate time to learn high-demand, non-IT skills (e.g., digital marketing, financial planning, UX design). Free platforms like Coursera or Khan Academy can be invaluable.
- Leverage Free Days: Use 3–4 free days to pursue small, low-commitment gigs (e.g., pet sitting, transcription).
2. Optimize Spending
- Rent: While you're unwilling to downgrade, re-evaluate shared housing or co-living options to save ~$200/month.
- Food: Bulk buying and meal prep could further cut costs by 5–10%.
- Social Spending: Limit outings to twice/month; replace some with cost-free meetups (e.g., walks or home gatherings).
3. Grow Savings
- Emergency Fund: Aim to have 3–6 months' expenses in savings (~$3,800–$7,600). Prioritize this before major purchases or travel.
- Crypto Risk: Crypto can be volatile; consider reallocating some funds to safer assets like high-yield savings accounts or index funds.
- Side Hustle Allocation: Dedicate extra income to savings (70%) and personal growth (30%).
4. Long-term Growth
- Career Exploration: Use free time to intern, volunteer, or shadow in fields of interest to identify a sustainable path outside IT.
- Invest in Knowledge: Books like “The Simple Path to Wealth” by J.L. Collins and “I Will Teach You to Be Rich” by Ramit Sethi offer actionable steps. YouTube channels like Graham Stephan or Ali Abdaal can help with financial literacy.
5. Travel and Big Buys
- Start a “future goals fund” for discretionary goals (e.g., travel or large purchases). Contribute a small fixed amount monthly, starting with $50–$100.
Tailored Recommendations
Short-term: Focus on increasing income through diversified gigs and reducing social expenses.
Mid-term: Build an emergency fund and acquire skills for career transition.
Long-term: Align financial habits with future aspirations (travel, career freedom, and financial independence).