A Millennial’s Guide to Saving More Money

Financial AdviceApril 30, 2019

Millennials are always on the move — they are everywhere! Tasting the food at the newest cafe in town, searching for unique finds at that chic boutique with lots of quirky stuff, going on a backpacking trip to some exotic place, painting the town red during weekends — everything is in their bucket list. But how do they manage to pay for all this? Well, here’s the honest answer: they live from one paycheck to another, failing to garner any savings and finding themselves broke. It is especially worse for those who stay by themselves and have to bear the burden of paying the rent all by themselves. Are you one of these broke millennials? If so, here are some important tips that can help to improve your financial status:

Go On A Cash Diet

A cash diet is exactly what you think it is! You will live like the olden days — no plastic in your wallet, just cash. When you start paying in cash, you can keep track of every penny you are spending. Whenever you spend money on something, you must write it down. As you know, cash does run out, and if you are not careful with your spending habits, you might end up running short on cash. Keeping color-coded envelopes for the most basic needs can also be a great way to track your spendings. That way, when the money in the envelope runs out, you will know you have to hold your horses and can’t buy anything anymore.

Live Without A Credit Card

Did you know that you can build your credit history without a credit card? Yes, you can! One way is to get the utilities in your name and pay your bills on time. Also, use your loans to show your history of repayment. If you pay rent, ask your landlord to report rent check to credit bureaus. You can even apply for a credit card even if you have a low credit history. Secured cards are offered for people who have no or low credit history. Yes, it might not be possible to rent cars or book a hotel room. Until you can afford a credit card, couch surfing or riding along with friends might be an option.

Change Your Lifestyle To Suit Your New Financial Status

It will be difficult, and well, we never said it will be easy! Changing everything in your lifestyle might not be possible in one go. So, take one thing at a time, start looking for a cheaper alternative for one thing in your life or do without it completely! For example, save gas and walk to places that are nearby. Ditch the morning coffee from Starbucks and try making one at home instead. The amount you saved from these small changes should go in a bowl that you can keep in your living room. It will boost your self-esteem, seeing the stack of change growing!

Once you start saving or realize the importance of it, you will start taking pride in yourself and that will definitely make your financial foundation stronger for the rest of your life!