We have entered a point in time where “millennials” have started to enter the work force, which means they are earning their own money and spending that money as they see fit. Though they command a much bigger salary as compared to their predecessors, does it mean they have much more disposable income than those in the previous generation? Not really. However their priorities are very different. Many millennials find it difficult to save their money for the future, finding themselves using a majority of their income to pay off various debts and loans such as mortgage, car loan, student loan, personal loans, credit card loans and of course paying for daily expenses like food, entertainment and bills.
This paints a grim picture and it may seem impossible for a millennial to save their money for later. However this does not have to be the case at all. Here in this article we will discuss 6 very simple ways any millennial can save their money.
1. Get a roommate or move back home
Living alone can be a burden on everyone no matter what their age might be. This does not just have to be emotional, it may be financial as well; after all, paying rent/mortgage and paying the various bills costs money. Splitting rent and cost of utilities is one of the best ways you can save money. Of course sharing a living space with roommates is a personal decision that may or may not be for you. In which case you can always move back to your home town and live with your family (at least until you are more financially secure).
2. Use public transport
While owning your own vehicle or is indeed convenient and certainly a more attractive and comfortable option than a bus or a subway. But you have to ask yourself, is paying the extra cash for the convenience and comfort really worth it?
Taking public transport can help you save up a substantial sum, money which you can save and keep for the future. Yes, you might have to wake up a little early and it might take longer to reach your destination (depending upon the route and the traffic) but the fact that you will save a considerable amount of money is undeniable.
3. Create a budget
Creating a budget for yourself, even a bare bones one, will make a huge difference for your finances. All you need to do is be mindful of what you owe i.e. your debts and spending habits. To create a basic budget, write down all of your monthly expenses along with some projected expenses. Also make a habit of looking at old budgets and working out what you can cut down on so that you can save some more cash next time.
4. Be frugal with the luxury items
We all like to treat ourselves, whether it is some chocolate cake, designer clothes or dining. There are a lot of great things to buy which are affordable, making them all the more tempting. But the truth is that these “affordable” purchases slowly add up and can put a major dent in your finances if not kept in check. Practice being more frugal with your spending, buy only what you really need. If cutting down your spending habits is too hard then try for the cheaper options.
5. Limit the use of credit cards
It is tempting to use a credit card to make all your payments, after all society has made it very easy to use a credit card and it makes it so you do not have to keep large amounts of cash on your person. However, it is a smart move to be mindful when using them. If you use credit cards carelessly you will be adding on to your credit card debt which may eat into your finances at the end of the month. Be mindful of what you purchase and how often you use your credit card, it will help you out later on.
6. Every little bit counts
Sometimes, it may not feel like you are making much progress financially; however you need to remember that to stay on track collecting small savings everyday adds up over time. Also, they can grow even more if you make some wise investments. The small savings can be put into simple things like property mortgage payments which will be very useful in the long run. You do not need to drastically change your life; just a few small changes here and there will help you in a big way in your future.
Many people take the word millennial to be synonymous with an adventurous and ambitious generation that lacks financial education, but this need not be the case. Millennials are hardworking individuals. We hope these tips will help you save your money for the future whether you are a millennial or from any other generation.
Want to learn more ways you can save your money? Talk to us, send a message to firstname.lastname@example.org.