5 Simple Money-Saving Tricks for Millennials. This youthful, ambitious generation knows all about the financial pitfalls of the modern era. They are eager to kick-start their entrepreneurial dreams, but they are often slowed down by accumulated student loan debts, the unstable economy, and not to mention the rising costs of modern living paired with lower salaries. The level of competitiveness in pretty much every industry is downright staggering, which further makes it a challenge to build a stable source of income and leave a legacy of surplus rather than debt to their kids.
Millennials, however, have found many a frugal way to turn a profit, make a living, and save a penny here and there with smarter lifestyle choices. If you’re looking for even more millennial-perfect ways to save up, look no further than this little guide!
In order to save money, it’s not enough to only think in terms of budgeting in accordance with your earnings so as not to spend more than you make. Instead, focusing on different areas where you can spend more wisely and finding ways to save every step of the way can help you determine how you can restructure your day-to-day budget. Cutting down your eating out expenses can be simpler with a meal plan that gives you an insight into what and how you can eat better for you and your budget.
Start by tracking your daily spending habits, whether through a simple spreadsheet or with the help of a money app such as Mint. It will give you a more thorough insight into your behavior, based on which you can build your spending plan and instantly put the extra cash into your savings account.
While we’re on the subject, there are many ways in which you can increase your potential to save cash every day. While opening up a savings account, which is a necessity in this day and age, can be a serious step towards making a commitment, you can also think in smaller steps as useful ways to contribute to your overall savings agenda.
Whether you make your own jar of voluntary donations to your future or you purchase an actual piggy bank, reinforce your frugal mindset by setting aside change, petty cash and any stray money you come across into this designated savings spot. You’d be surprised just how much such little steps can accumulate into a more meaningful effort, such as saving up for a vacation or a retirement plan, for that matter.
Retirement is definitely a step worth considering even as early as in your twenties. After all, it’s never too soon to secure your future. However, that same mindset should apply to your other saving options, like opting to invest with an endowment plan which can help you accumulate a decent sum over the years and provide you with a nest egg for a variety of important milestones. Whether you plan to send your kids to college or give them something to rely on in case of your premature demise, life insurance policies are truly a necessity for a millennial.
Endowment plans are a two-in-one solution that provides you with a solid investment for your family while also ensuring you will have financial stability later in life. Some plans come with shorter terms, allowing you to put that money to use as early as three years after making a commitment, while others are more profitable if you let them grow over a decade and more.
Unlike your piggy bank and other immediate means of saving, you can find more ways to contribute to your newly-established mindset by opening up a separate savings account. Separate meaning entirely separate from your regular checking account, in an entirely different bank – this will make it more difficult to draw your funds from one account into another, and prevent those momentary cravings to spend more than you need to.
Keep your accounts separate, and, of course, make a promise to regularly add a bit more to your savings account. You can even work out a monthly sum that you can automatically transfer as soon as your paycheck arrives, so as to prevent any impulse spending, especially online. We live in a rather convenient culture, so it pays to make things a little less convenient for the sake of a more financially stable future.
What better way to save more than to earn more? After all, since we’ve mentioned convenience, you can now easily find a slew of handy ways to make extra cash without putting in hours every day. However, in order for such a method to work, you also need to make an effort not to spend the extra cash as soon as it’s available, but allocate it to a designated savings fund.
From tutoring kids in your neighborhood, teaching English online or selling your possessions on eBay all the way to taking up an extra project or two on Upwork, you can create a monthly scheme of additional earning. Define your monthly milestones of how much you want to put aside, and then calculate how much effort it takes to complete the goal, and soon enough, you’ll have that extra money piling up in your bank account!
Saving can indeed be a difficult task for the modern millennial, especially considering the financial climate in which we live. However, consistency paired with some imagination can help you find the right balance and make your money work for you and your future!
Guest Post by Luke Douglas