7 Ways Millennials Should Save & Spend Less
We often hear the word Millennials. But who are these individuals?
Anyone born between 1980 and 2000 are called or fall under the bracket of millennials. They are characterized by adapting very well to change and delaying their transition to adulthood. That is why they have been given the name “Peter Pan” (i.e. an adult who does not want to grow). They have also been characterized by greater entrepreneurial skills.
But how careful are millenials with their money?
Young People and Money: An Impossible Relationship?
Studies have shown that most millennials spend more time in their parents’ home than they do at any other time in their lives. Although economic independence is one of their priorities, it is difficult for them to leave home and start their own family.
This generation is not usually very concerned about their long-term finances, but tend to take risks in short-term financial decisions. They prefer to choose to undertake businesses in which they are their own bosses or which allow them to fulfill their interests. Most of them are looking for businesses where they don’t need to invest money.
In this search for businesses that do not need investment, it is necessary to know how to save. This way, the gains will be greater.
Saving Will Save You
The vast majority of millennials do not save for their future as they do not worry about long-term finances. And from a financial perspective, this is a big concern. Because young people do not worry about money in the long run and if this continues, the future can become very difficult.
It is recommended to save small amount for retirement from the money you get from your first job. In addition, saving in the short term is also an advantage. Most prefer to save this way to make necessary investments in their businesses.
How to spend less being millennial?
This generation has managed to develop different methods to spend less money on their daily lives. This represents a saving that goes very well in your pocket.
Some of these methods are:
Discount coupons have made life easier. From hairdressing services to the purchase of grocery, furniture, or gadgets, these discounts/deals are widely used. This method saves money on activities that can be very expensive. It has also allowed individuals to realize when there is or is not a good offer.
Saving Unexpected Profits
Many young people don’t really know how to allocate their windfall profits. Whether it’s the bonus from the job or the gift, unexpected earnings are a moment of doubt. While many choose to spend it all immediately, these gains are actually primary savings opportunity, as the accounts do not unbalance.
The digital technologies have enabled the development of applications for intelligent devices that provide the methods and knowledge needed to make the right and better use of the money earned. In these applications, they keep track of all your financial transactions. All this allows for greater control of spending, which is very useful for millennials, who do not tend to plan their monetary spending.
Research – Before Buying
They have access to the internet to research products, brands, prices and references, so they can make good buying decisions. A young person who has the agility to look for better prices and economic alternatives will always be able to save more on what he or she spends.
Avoid Credit Card Debt
Millennials love credit card more than anyone else and are often soft target of card companies. Having to pay high fees for their studies has given them the responsibility of debt. Because of this, they prefer not to owe banks with credit cards.
Having Several Small Jobs at the Same Time
The first job always seems to be a bit complicated. So many young people have directly chosen to have a number of low-demand jobs with which they can search for themselves and thus earn more income than they would earn in a full-time permanent job.
Buy only what you need
Although this is far from being an exclusive feature for millennials, waste is the main cause of small amount of money saving. The most relevant thing in this sense is to determine the need for an object or service and, based on this, to determine its purchase.
A very important general advice is not to overspend. Money is often spent on unnecessary items. In addition, many young people have stated that the salary earned does not allow them to make long-term savings.
Although this is an important factor, it is good to point out that you can always save a little. Learning how to save money is essential to life. The habit of saving and spending should be acquired from an early age so as not to have problems due to waste.
It is important to note that young people do not necessarily have to save directly for old age. They can do it in the short term for a business that leaves future profits, but you always have to keep in mind the long term finances, because you never know what the future may hold for you.