Research is showing that Millennials may be more serious about saving money and investing in their future than their parents are. Millennials don’t necessarily have more bills than their parents do, but they may have more financial burdens, like rising rent prices without rising wages and incredible amounts of student debt.
Throughout it all, Millennials seem to have learned that money is something to be taken seriously and that it’s necessary to prepare for the future as soon as possible.
Even if you’ve been saving money and learning what you can about investing, there still may be some things you haven’t thought of to help you get more money in the bank for the future – maybe even more than your parents have!
Take Advantage of Technology
Your generation has technology at its fingertips all the time, from the ability to check your email while you’re taking your morning walk to depositing your paycheck via an online banking mobile app. If you’re not taking advantage of technology to help keep your finances in order and save money for the future, then it’s time to start now.
There are numerous mobile apps, like Mint and PocketGuard, that help you do everything from create a budget to automate your savings transfers. Many of them are completely free and you can connect all your bank accounts and credit card accounts in one convenient app.
They’ll give you an overview of your finances, help you see where your money goes, and even offer suggestions for things you could be doing better. If you find it tough to create a budget and figure out how much money you’re able to save, then automating the process with a mobile app is the way to go.
Plan and Stick to a Budget When You Spend
When you have a budget in place, you’re less likely to spend money frivolously because you’ll always know what you have available. Planning a budget (and sticking to it) is the key to financial success in the present and future.
One of the biggest areas where you have the most potential to save money is with your monthly food budget. In 2015, the average American household spent about 43% of its food budget on eating out, including at restaurants or fast food places. That percentage equates to over $3,000 on eating out every year.
That’s $3,000 in savings that you could have instead. Even if that’s all you saved in a year, you’d have over $30,000 in ten years when you include interest from your savings account.
Planning out your meals, entertainment, clothing shopping, and more, can yield significant savings over time.
Use Low-Interest Personal Loans to Get Debt-Free
The average debt on a credit card that usually carries a balance is over $7500, and the average APR is 16.15%. It’s no wonder that people have a tough time paying off credit card debt when interest keeps piling up. Of course, the more debt you have to pay, the less money you have to put into savings.
Let that vicious cycle stop now. You can refinance your credit card debt by taking out a personal loan with a lower interest rate. If you have a good credit score, you’ll likely find a personal loan with an interest rate much lower than what your current credit card interest rates are.
Take some time to compare personal loans and their interest rates for the amount you’d need to pay off all your credit card debt. Those with excellent credit can expect the lowest interest rates, but you may even get a better deal than your credit cards are offering you with fair credit.
One huge mistake that many people make is not checking out the best deals on the bills they pay every month. Most companies that offer several services will happily bundle those services together for you for a lower price than you’d pay for them separately.
Check with your auto insurance company to see if it offers discounts on bundled insurances, like homeowner’s or renter’s insurance. You can also call up your phone company to ask if you can get a discount on your internet and TV subscriptions.
Don’t forget to negotiate your bills too. If you get an offer in the mail that’s a better price than what you currently pay for your service, call the company and negotiate for a better price!
Whatever you do end up saving via these methods can go straight into your savings account.
Cut Expenses You Don’t Need
Subscription services are huge now. You can pay a monthly subscription for everything from TV streaming services to music services. As convenient as they are, they can also add up more quickly than you thought.
The thing with subscription services is that the monthly price for one might be great, but once you start piling in more, you can quickly reach a $100 bill every month just for these services.
Every couple of months, write down all these extra costs and see if there’s anything you’re willing to part with. If you don’t use it more than once or twice a week, you’re probably better off without it.