Millennials who have just started their career with a decent remuneration can have a tough going in terms of saving when it comes to planning their future. But for them savings is important in order to secure their future and encounter financial challenges courageously when crisis happens. While some like to play it safe with investments, there are others who prefer to take gambles for increasing their assets. While the mindset differs from one individual to another, it is important to save money to safeguard their future. According to a survey conducted, the millennials or people who reached young maturity more or less in the year 2000 –would encounter serious financial hardships than their parents’ generation. This should act as a wakeup call for all millennials who are still unsure about wealth management or savings. Therefore, we have compiled a few money saving tips which millennials will find beneficial.
Begin early when it comes to saving
Age is on your side if you are a millennial and you just need to take advantage of it. Starting savings as soon as you get your first paycheck can be a boon. For this you need to make as much money as early as possible. Apart from your job, you can look for supplementary income like earning commission on life insurance policies, starting tuition at home, kickoff a small business like that of home delivery food or anything you find interest in. Remember, you have to be enterprising and dynamic to be able to excel in whatever you do.
A low-interest credit card will be just fine
For creating assets, a credit card can be an effective tool. A low interest credit card will just be wonderful for shopping or eating in a fine restaurant. Find facilities in it such as 0% APR period, no annual fee, and free credit score services. Look for perks such as cash back or traveling points. This will help you to preserve your money on traveling and shopping and avoid unnecessary expenses. However, you should avoid accumulating credit card loans by purchasing more than you actually can afford. This is one of the beneficial money saving tips for millennials that they must follow.
Invest in the lucrative real estate
Investing in real estate can be a safe option and it can be very handy especially during a financial crisis. Purchasing a new home is ideal not only for living as you can sell it when you need funds or for the purpose of making profit.
Diversify your funds
Instead of saving in one particular financial scheme, think about diversification of funds because, the financial market is volatile and suffer fluctuations from time to time. You can consider life insurance, rental properties, contingency funds, cash holding accounts, primary property and non-retirement investments.
Work on a budget
At first you need to know your objective of earning. Is it having a family or owning property or both? Keep a track of all your expenses (such as groceries, newspapers, eatables etc) by using an excel spreadsheet or app, and curb down the unnecessary ones. Pay out your debts (such as student loans taken for higher education) if you have any. Chalk out plans for the future and what you want from life? Is it buying a new car or going for an exotic holiday? Start prioritizing from day one. Compartmentalize each cheque for different expenses like bills, savings, shopping etc.
To make a fundamental budget, keep an account of all your continual monthly expenditures along with all your proposed expenses. Try to reduce your previous monthly expenses by 10% on groceries or food items.
Build a contingency fund
Life is full of uncertainties and unexpected events so you need to create an emergency fund to cover three to six months of expenses.
You can always find yourself in good stead and face confidently at whatever life throws at you by building a contingency fund. The fund can be utilized for meeting some unexpected medical expenses or higher education purposes.
Shop online for coupons, freebies and discounts
Many shopping carts offer coupon codes and freebies for shopping online. Browsers too automatically searches for coupon codes and sales whenever you are checking out online. This will help you to save your hard-earned money. This is one of those money saving tips for millennials that can help you to preserve your wealth by sitting at your home and without any hassle.
Choose a checking account that refunds 100% of ATM charges
Many online banks refund any ATM fee you run into. You can take hold of cash at any time without thinking again and can save your time, money, and stress.
Generation X needs inspiration to save up their money for future needs. Hopefully by following the above-mentioned tips, they can get the right direction for sailing through. However, they need to understand savings is vital for existence and not merely a means for security.