Speaking to the Millennials born between the year 1981 till 1996, have you achieved your financial goals yet? Have you afforded your first home? Managed to travel to your desired list of countries or even saved up to set up your dream business? Got married to your Mr. or Mrs. Right yet? No?Why not?
Why Can’t Millennials Save Money?
Adulting is hard but millennials have it tougher – they are often stereotyped and blamed for their lack of financial capability in achieving the financial future most of our parents seemingly successfully did. However, many did not realise the unique positions that we are in – is that we have a much different, heavier financial burdens compared to the previous generations.
Why such a predicament happen, you ask? Below are the reasons:
- Stuck with a large student loan for their tertiary education that can cost a graduating student up to USD27,000 for a bachelor’s degree or higher
- Living in cities that comes with the consistently rising cost of living in terms of property, childbirth, healthcare, daily expenses, and others.
- Making less money compared to employees from the previous decades due to inflation
Can Millennials Still Save Money? And How?
Living in such a painful reality might seem that all hope seems lost, but it’s not. Every bit of effort put into making it work, no matter how small its monetary value can accumulate into bigger savings. You are, after all, leveraging on the compound interest.
Keep in mind the one important trick that while doing this is, do not give in temptations and societal pressure! Let’s begin with these financial tips:
No. 1: Split Your Rental with Your Roommate or Don’t Rent Out
Big chunks of money going into your housing? You might want to consider splitting your costs with someone. Living in cities certainly ain’t cheap, and having a roommate will save you at least USD700 or more per month. Or just don’t rent, stay with your parents till you are financially ready to get your own home! Just make sure you contribute too, in a small amount of rent or utilities for the house to jumpstart your consistent path of financial independence.
No. 2: Adopt a Healthy Lifestyle
No, it will not cost you an arm and a leg to adopt healthy habits. Not only you’ll be able to reduce the unhealthy, but expensive dining habit – you’ll also avoid paying hefty medical bills! Eat your vegetables, consume less processed food, drink more water instead of carbonated drinks and exercise regularly! Your neighborhood parks aren’t just there for display.
No. 3: Save or Invest a Small Percentage of Your Salary
Using the infamous 50/30/20 rule – allocate at least 20% of your salary towards savings or even better investments. You can spend 30% of your salary on your desires or luxuries. However, if you already don’t have enough for necessities and have yet to contribute savings – you’ll have to skip buying luxuries altogether.
No. 4: Avoid All of That Impulsive Purchases
Tempted to get that expensive piece of cake? Or that limited edition sports shoes you’ve been eyeing? Or even traveling? If your financial condition is not looking up, put them all off. According to a survey, 9 out of 10 millennials confessed to purchasing things impulsively. Don’t be those statistics! Find out if you need that item by applying 30-days rule. See something you like online? Wait 30 days before you buy it. You’ll probably discover you actually don’t need it.
No. 5: Automate Your Payments
Want to avoid decision fatigue with a little amount of discipline required? Automation is your answer! Leave it to automation for your savings, bill and debts payment. Not only you’ll be able to keep track of your monthly outgoing transactions the easier and quicker way, you can avoid late payments and overdraft charges too. It is now the 21st century, download apps to do it for you.
No. 7: Bring Your Ready-Made Meals To Work
Can’t resist the good but slightly overpriced meals you constantly get at your favorite restaurants? You have to. Trust us, saving a bit on your lunches and dinners goes a long way, financially. For instance, try eating out only once a week instead of every day and opt to cook. Who knows, you may be surprisingly good at whipping up delicious meals that tick off the healthy and cost-efficient boxes!
No. 8: Pick Up A Part-Time Job
Now is certainly not the time to slack off. Having fun when you’re young is important, so does earning more to secure a future of financial freedom. Go babysit, waitressing, part-time delivery, do one-time odd jobs, freelancing or even set up an online e-commerce platform. Anything that you can set aside some time to generate extra cents or two.
In conclusion, millennials shouldn’t be the only ones advocating financial education, but also other generations as well. Remember, do it for your financial future and to achieve your lifelong goals!
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