Millennials have been born into an age that’s overflowing with accessible leisures and luxuries. Sadly, most of these enjoyable things come at a significant cost when you tally up the expenses, and this is what mostly jeopardises your chances of saving money as a millennial.
If you really want to save more money, you need to learn to spend less on things that don’t really matter at the moment. And if you are unsure about how to go about this, the tips below are here to guide you;
- Live the simple life. Due to personal taste or peer pressure, you might feel the need to live a lifestyle you can’t necessarily afford. Examples of such include, buying expensive clothing, eating in fancy restaurants frequently, or living in a fancy apartment with a great view. While all these conveniences are enviable, they are also putting a big hole in your pocket and eating up your savings. Thus, instead of immediately trying to live the high life, first live the simple life. This will give you an opportunity to save more money and get your finances in order. If properly done and you have a good income, you could be able to pay off a significant amount of your student loans, and most importantly, avoid the dreaded credit card debt.
Keep in mind, living simple doesn’t mean you can’t have a good life. You just need to make sure that you aren’t being wasteful.
- Are you ready to buy a home? Houses aren’t only expensive to buy, they are also expensive to maintain. While buying a home is in the long run a good investment, it is an investment that can wait till you are more financially stable. If you rush to buy a home when you are young either by taking a loan or with personal funds, you could end up being left with insufficient funds to maintain the home or even yourself, which leaves you with very little for savings.
- Is a brand new car a good idea? The value of a new car begins to drop the moment you take possession of it. This means a car is more of a liability than an investment especially considering that you have to pay to fuel and maintain it. Thus, if you are just starting out financially and looking to save money, a new car should probably not be a priority for you. You can even take out a car loan to help with the costs.
- Lock your money up. Accessible money that’s just lying around is very tempting to spend. To avoid the temptation of spending money you’re saving up for something else, you can lock your money up in a secure investment or deposit for a fixed term in order to avoid having assess to the cash.
- Automate your cash flow. By automating your bills, savings, credit card payments, and so on, you’ll be left with nothing but leftover cash to spend. This way, you can avoid spending money that’s meant for savings or paying bills. It also helps you avoid costly late fees and overdraft charges.
With these tips you can save more money for whatever goal you have in mind, be it self-improvement or even travelling.