Despite their youth, much of the 19 to 34-year-old millennial generation is financially astute and many believe that millennial savings tips can actually secure your future financially.
This is partially due to the fact that they experienced the Great Recession as young adults and realized how crucial it is to save aside money for rainy days.
Motivated by technological advancements and an openness to try new things, they’re adopting some peculiar approaches to saving as well.
A new automobile, school debts, or a new home will always provide you with an excuse not to save money since time goes much faster than you would imagine. It may seem clear that the less money you save today, the more you will need to save later, yet fresh grads often ignore this fact.
We are aware that starting to save money might be difficult so in this article, we go over millennial savings tips for a better financial future!
Make frequent use of coupons
Kris Mullins, CMO of Capital Max shares: “By shopping around for deals, I often save 25% or more on purchases like furniture or stationary.
I use cash-back programs like Ebates, internet discounts, and bargains like LivingSocial and Groupon as well.
Although they may not seem like much, the savings do add up by the end of the year so I recommend making your coupons count!”
Talk to friends about your finances
You should inform your friends when you are spending less at restaurants to save more.
In this manner, people will know that you are being frugal and not disrespectful if they extend an invitation to you and you turn it down due to the expense.
You’ll pretty much never hear anyone say, ‘You’re being cheap.'” Instead, your friends may even locate inexpensive or free things to do together.
Set and achieve goals
Specify a period for yourself as you set and monitor your objectives. Nearly two-thirds (65%) of millennials indicated they would work until they are 65 years old or older, and half said they intend to work after they retire, according to CBS News.
Thus, deciding on a target retirement age will ultimately dictate how much you need to begin saving. For a place to start, use our retirement calculator.
Save money starting now!
Rhett Stubbendeck, founder of Leverage Planning says: “Even while it can seem like you have a long way to go before you need to begin saving for retirement, the earlier you begin, the better.
The amount saved in your salary beginning at age 25 compared to age 35 is astoundingly different. Don’t wait until you’re 35 years old to begin retirement savings.”
Outperform inflation by investing
This is one that I wish I had known sooner: INVEST as soon as you begin to earn and save money.
Allowing money to remain in a bank account is equivalent to allowing it to lose value because the interest rates in those accounts are pitiful and pale in comparison to the rate of inflation (my money from ten years ago doesn’t go as far now because the value of the dollar is declining).
Match your expenditures to your principles
I really think it’s important to utilize your money with purpose. Try to support businesses and brands that share your values when you make purchases.
Some women, for instance, prefer to shop at establishments that are “run for women, by women.” A better planet, ecology, and future are created when you support businesses that prioritize societal improvement above profit.
It helps to guarantee her that the money you spend is wisely spent when you consider your purchases from this perspective.
Have hope
When it comes to your financial future, a little optimism may go a long way toward avoiding frustration and sorrow. Millennials are excellent at this quality:
Two out of three millennials say they have sound financial practices, and eighty percent feel they will be better off than their parents, according to a new Bank of America/USA Today study of over one thousand millennials.
Use money apps
Harrison Tang, co-founder of Spokeo says: “Every week, it seems like new budgeting applications are released onto the market.
Millennials, in particular, are big fans of these apps since they don’t mind using their phones to manage their money. Among the alternatives are Moven, Prism, and Level Money. They make it simple to monitor your spending even while you’re on the go.”
Avoid taking on needless debt
Borrowers who take on unnecessary debt often find themselves in a tight noose around their necks. Not all debts are created equal.
Debt taken out to acquire an item or learn a new skill is a positive thing, but debt taken out to satisfy an immediate need might get millennials into trouble.
Given the high interest rates associated with credit cards, it is not a smart idea to swipe your card for every tiny transaction.
It’s not ideal to just pay the minimal amount owed. Therefore, millennials should consider if they really need a debt before taking one on.
Reading the loan agreements’ tiny print is also crucial if you want to prevent surprises later.