Shortly after ringing in the new year, many Millennials are already struggling to reach their financial resolutions. It’s no wonder why; the average debt a typical millennial carries is $47,689, according to a Millennial Money Mindset report. The study also found that 41% of Millennials want to “increase my overall level of savings” in the next three to five years. Here are some financial tips to help those Millennials achieve their money-related dreams.
Make your own coffee
If you’re a regular coffee drinker, you know how hard it would be to stop, and stopping is not necessary. Have you ever thought about the amount of money you’re wasting on your coffee shop drinks every day? Even if it’s just $3 to $5 a day, it really adds up. Make your coffee at home and you will save yourself a ton of money.
Stay away from credit cards
According to a recent NerdWallet survey, two in five Americans who have credit card debt reported spending more than they could afford on unnecessary purchases, which contributed to them going into credit card debt. Buying things you can’t afford is just silly — especially when they are unnecessary. Save yourself the headache and steer clear of those dangerous pieces of plastic.
Take advantage of technology
Since you’re probably on your smartphone all the time anyway, try downloading a budgeting app. Budgeting for your bills and debt payments is super important to keep you on track every month. With most of these apps, all you have to do is put in your income and your bills, and they can help you with your monthly budget. You will better keep track of your spending this way as well.
Start saving for retirement
Retirement can sneak up on you, and you don’t want to be caught unprepared. The earlier you start saving, the more money you will have when you retire. You can choose either a 401k or an IRA account. Either way, start investing in your future as soon as you can.
Millennials may feel hopeless when it comes to saving money, but that doesn’t have to be the case. There are very simple things you can do to make your financial situation easier. For instance, make your own coffee, stay away from credit cards, use a budgeting app, and start saving for retirement. Following these step can help out you in the trajectory for success.
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Here are my thoughts on how millennials can save money.
1. Cut the cable tv. Many of my friends are paying $100+ monthly for television, then wondering why they can’t make ends meet.
2. Eat at home. I work with guys my age that go out to lunch every day and supper every night, and then wonder why I was able to buy a house, and they can’t. Not to say that I never go out, but it is rare, and I certainly never order alcohol while I’m out.
3. Get a roommate, or two, or three. For years I lived with roommates, it was very nice having other people pay my mortgage for me.
4. Reduce your standard of living. My standard of living dropped dramatically when I moved out of my parent’s house. Slowly I’ve allowed some luxuries back in, but only when I knew it was absolutely sustainable for me.
5. Get a second job. If you want to get ahead, the quickest way to do that is to earn more. I worked two jobs through college and for about 5 years afterward, making sure that the extra income was only used to pay off student loan debt or contribute to investments. Never to increase my lifestyle..
Just my take on how to get ahead as a millennial. To paraphrase Grandfather Blakeslee, “free advice, worth every cent you gave for it.”
Urk!
I see you have made an impression on the readers here, Dave! Congratulations!!!
Great tips, Jason. And a corollary to item 2 is always take advantage of your leftovers!
Great advice. I did the same 40 years ago and it works. Just want to add….have a firm plan with objectives like, “I will have my house paid for by ___________”. And then stick to it. A paid for home = freedom and the ability to retire very very early. Enjoy the days….most of us live better than royalty did 150 years ago and don’t even realise it.
Great basic advice.
Budget a little each month for hobbies. Add a little in for money to blow on whatever you want. If you’re too restrictive, you’ll get tried of it, and big time blow it .