Forbes called the Millenials the ‘Money-Conscious Generation,’ as it appears that those under the generation Y prioritize saving over spending.
“They have a Depression-era mindset largely because they experienced market volatility and job security issues very early in their careers, or watched their parents experience them, and it has had a significant impact on their attitudes and behaviors,” said UBS head of investor insights Emily Pachuta.
But, a study featured by The Daily Cougar noted that Millenials are only practical when it comes to spending with their basic needs, but still lack money saving perseverance. In the same study, it appears that the generation Y had difficulties controlling their spending when it comes to unnecessary items such as technology, smartphones, etc.
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Here’s a post to help every Millenial use their hard-earned cash wisely and save more for the future:
1. Organize your cash flow and cash out
The first thing you need to understand is how much you get monthly and where it goes afterwards. From here, most of the time, you will be surprised how much you spend in a month. Often, your earning goes to unnecessary expenditures, leaving your savings a few bucks to nothing. All you need to do is to list down your basic commodities, a budget for personal use, and a fixed amount for your savings. This will help you get started in saving money wisely in no time. Click here to read some of the top apps you can use to organize your money.
2. Change your lifestyle
In order to start saving money, you must change your lifestyle accordingly to your budget. Instead of going out daily to eat, start buying grocery items and cook at home. The price of petrol is getting higher daily, so opt to use public transport or better yet, walk if it’s just nearby. It’s a win-win situation as you will be able to save cash and get fit at the same time. Change the way you spend and you will be surprised how much you can save daily.
3. Invest your savings
Keeping your money at home will not help it grow. Learn to invest it to something worth getting higher returns. It can be in an insurance plan for your retirement or educational plan for your children. Some also invest their money in banks or stocks that earn high interest. Others use it to put up their own business or help startups financially for future returns. Whatever your investment ideas will be, just make sure you understood all the angles of this new venture including the risks.
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4. Think about retirement
Yes, you are still young to retire, but not too young to think about the future. As early as now, you must be prepared about your retirement. No one wants to work all their lives for nothing. It’s time you lay out your goals once you reach the retirement stage. Where do you want to go? What do you want to do? By making your retirement your end goal, it will help you in saving early to reach your desired dreams come true.
5. Pay off all debts
It’s common that Millenials are still paying for their student loans until now, apart from their other personal loans and credit card debts. In order to keep your budget tight, you must pay off all debts, no matter how big or small. Do not be trapped in the thinking that a debt can pay another debt. Start paying those previous loans you had before slowly and soon you will be out of this financial burden. It’s the only time you will be able to live enjoyable and save up for your future.
How do you save money for your future?
For more money saving tips, read this Huffington Post on how to save $100s monthly.
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