Five Money Saving Tips Every Millennial Must Apply Today
In a recent survey, it revealed that Millennials are better at saving money than Baby Boomers. But, it appears that most of them aren’t confident that their savings are enough to safeguard their future. In the survey, 64% of the working Millennials in America admitted that they are still behind in their goals when it comes to saving money for retirement.
Are you one those people that wants to change your spending habits and start saving today?
Here’s a guide to help Millennials in their quest to save money to ensure financial stability and to safeguard retirement.
Organize your finances
The first step is to organize your finances, from your monthly budget, the amount you need to save, and the money you need to set aside for personal expenditures. There are various mobile apps that can help you organize your finances. But, for those who prefer jotting down notes, then you can use a small notebook to look after and log your expenses and finances monthly. Firstly, list down all the basic necessities (rent, electricity, water, etc.), then allot an amount for your savings, and a budgeted amount for personal expenses.
Start saying “No!”
After organizing your expenses and budget, it’s time to control yourself. The first thing you need to learn is that by saying “no” it will help you save money faster. Don’t spend for the sake of spending money. When you feel the urge to purchase the latest smartphone when your old handset is still working perfectly fine, say no. When your friends say you should cover the whole bill at the restaurant, say no (and gladly offer money to pay your share of expenses). By changing your way of thinking when it comes to money, you are helping yourself to save more for the future.
Pay off all debts
Start your money saving challenge with a clean slate. You cannot save up if you are constantly paying for debts that have piled up. Did you know that 47% of Millennials have admitted using over half of their monthly income just to pay off their debts? Paying debts off is of the utmost importance, but you have to remember that it’s also not a form of saving. Once you’ve cleared your debts, you need to reassess your finances and wipe the slate clean ready to save for the future.
Apart from debts, common monthly bills are the reason why people are left with minimal cash to save. Monthly, we pay for electricity, water, grocery, credit cards (if any), tuition (for those with children) and more. These bills are inevitable, yet our consumption is controllable. We can actually save more money if we reduce some of the unnecessary bills as well as consumption of the basic commodity, then we can allot more cash to put up on our savings. It’s not much, but it helps to be more practical. Instead of dining out, choose to stay home and cook. Do not purchase items when the old one is still functioning at home, such as a microwave.
Invest smartly and wisely
Keeping your money under your bed will not allow it to grow. The only way to save money and earn from it is by investing it wisely to maximize its full potential. One simple way to generate more money is to invest in mutual funds. However, with every investment, you have to understand your end goal, how much you are willing to invest, and the risks you face from such an investment. Knowing the essential traits of successful traders can give you an indication of what is needed to help with investing smartly. These traits include the ability to goal set, knowledge of investments, preparing for risks, effectively leveraging trades/investments and knowing the right time to invest. If you can condition your mind to think this way, then it could help you see growth in savings.
There are various ways to save money, but nothing beats correcting unnecessary spending. Read our previous post on six finance tips that you’re doing wrong, so you know exactly what to avoid. Take note that the earlier you work on your savings, the sooner you can uplift your financial status and live the comfortable life you have been dreaming. Think of a comfortable retirement, a lifestyle without worries – and you’ll eventually reach your goals in no time.
How are you saving for the future? Share your own money saving tips with our readers below. For more tips on saving and investment, follow Epica Finance.