7 Practical Money-Saving Tips for Millennialsadmin
Today, most discussions about financial management for millennials leave them wondering whether the people out there understand their unique situation or not. For example, advice on tax-loss harvesting is way over the head of most millennials, and telling them to save half of their earnings when that is what they spend on rent is impractical.
In that case, understanding the financial challenges that millennials are facing today should act as the guideline for anyone trying to cultivate a savings culture in such a generation. Here are some of the financial difficulties facing millennials.
- Making Less Money – Currently, individuals between the ages of 18-34 years are making almost $4000 less annually despite their high education level, which is different in the case of the year 2000. When you factor in the high cost of living and debt to what millennials are making presently, their net worth falls below the negative line.
- Living in Cities – The number of millennials living in the city is incomparable to other generations, which suggests that they have to bear with the burden of the high cost of living and, consequently, their diminishing disposable income.
- Delays in Settling Down – Most millennials live in rentals while others are still living with their parents as a result of the high cost of living and soaring housing costs. Additionally, as Generation Z focuses on getting out of debt or living alone first, it means that delays in marriage and childbirth will remain inevitable.
- Debt – The fact that many millennials have a bachelor’s degree or higher suggests that most of them have a pending student loan even after clearing school. After securing a job, those in Generation Z will most probably borrow a loan for various reasons, and when you add that to what they owe institutions of higher learning, it increases the debt burden of each.
Even with all the financial woes facing millennials, there are some practical money-saving tips they can adopt, and here are some of them.
Invest in Financial Knowledge
Few individuals appreciate the value of seeking financial management guidance, and that is part of the reasons why they keep drowning in debt. As a millennial focusing on having enough to spend and save, you should consider investing in personal finance books that will impart you with the necessary skills.
Some of the books that offer money-saving advice that you can consider purchasing include Erin Lowry’s “Broke Millennial: Stop Scraping By and Get Your Financial Life In Order,” Dave Ramsey’s “The Total Money Makeover,” and Conor Richardson’s “Millennial Money Makeover.”
Prioritize Retirement and Payment of College Loans
The minute money lands into your checking account as an employee, you have enough bills to take care of, and for that reason, getting out of debt may not be a priority at that moment. Planning automatic transfers with your employer or bank for your retirement savings and payment of your college loans will streamline your finances, and soon you will have enough to spend and save.
The temptation to spend rather than save when payday comes is quite high, and adopting a check-off system with your employer is a sure way of taming this habit.
Cook At Home
Eating out seems to be the best option almost every other time, but you end up spending more money than necessary, and healthy eating becomes a challenge too. Cooking at home saves money, and it can help you maintain a healthy lifestyle as well. If you have busy schedules, you can food prep for the entire week at home, and that will save you both time and money.
Rent Out Your Car
If you are experiencing challenges bringing your debt down, you can consider cutting your expenditures while making money at the same time. One of the ways you can cut down on your budget and earn extra cash is by renting out your car if it sits in your garage the whole day as you work.
Also, when you are visiting with friends or family over the weekend, and you have no intention of using your car, renting it out can help you raise some money as savings, and you can service your loans with that cash as well.
Leverage Your Service Skills
The service industry has many opportunities, and if you have service-related skills, you can supplement your monthly earnings by finding some part-time jobs over the weekend. For example, if you have flooring skills, you can save a lot by fixing your floor when necessary, and you can monetize such expertise by offering the same service to others around you.
Such home service marketplaces as Thumbtack, Angie’s List, and Home Advisor can get you quality leads for service work if you have skills in appliance repair, A/C repair, and furniture assembly, among others.
Let Small Things Add Up
It is interesting to note that there are little habits millennials tend to ignore, yet they can save them significant time on the amount of money they spend daily or monthly.
Some of the money-saving approaches you can adopt today that can add up to significant savings include filling up your car when you are in an area with cheaper gas, opting for basic cable instead of premium channels, taking a shower at the gym instead of home, turning off every light before leaving for work, and keeping water from running when it is not in use.
Social medial is quite popular among millennials, and that is fine. The only problem is that the tendency of comparing yourself to others in your age group is quite high if you are a social media fan, and that can make your life miserable. Most individuals opt to borrow so they can maintain a lifestyle they cannot afford as a result of peer influence, and in that case, saving becomes a challenge.
Living life for yourself and not for others out there is one of the best practices that can save you impromptu expenses that eat into your savings and drive you deeper in debt. Be yourself, and you will put your finances in order.
It is almost impossible to separate fulfillment in life and finances, and that is part of the things that millennials are craving behind the burden of a high cost of living and debt. The bottom line is that every millennial you know has money worries. However, Koster’s is there for life’s necessities in a tight spot.