It’s a difficult time to save with unemployment and rent so expensive, however that means there’s no better time to start saving for your future. Even if you’re spending everything you can on rent, or you’re working multiple jobs just to make ends meet, there are certain money smart strategies you can put into play now that will save you big in the long run.
4 Money Smart Strategies Millennials Should Start
Stop relying on others
According to a Pew Research study, 36% of Millennials “depend on their parents or other family members for financial assistance…about one-in-seven Millennials with a full-time job – and about half who work part-time – say they depend on family members to help them get by.
About a third of Millennials who don’t have a job and are not in school get significant help from their parents and other family members.” While there’s nothing wrong with asking for a helping hand as needed, Millennials need to rely on themselves rather than others to reach financial independence.
Consider your options
While many Millennials are unable to make as much bank as their parents did at their age, there are some benefits to living through the millennium, including having more options. While their parents were predictably stuck in a society where the nuclear family was the norm and expected, Millennials are fast ditching those expectations and are freer to make their own lifestyle choices. This means you can carefully consider your options regarding those big financial decisions.
Can you comfortably rent or do you need to buy a home? Does work dictate that you need to live and work in the city or can you move further out? If living in the inner-city do you really need that new car? These kinds of questions need to be asked. They’re not simple answers anymore.
One of the best ways to increase your savings is to start investing. The reason why most Millennials don’t is simply that they don’t know how. Thankfully they’re also living in an age where education has never been more readily available. You can read up on the basics from Money Q&A or check out some online brokers or Investopedia to find educational materials for the beginner investor.
Make smarter buying choices
Millennials are known to be big spenders and light savers, though this is far from the truth as statistics show. While you’re probably, actually not spending all your hard earned savings on avocado toast as certain baby boomers would suggest, there are always improvements to make on spending habits. Small purchases like clothing and electronics and even larger spends like cars can all be bought for a fraction of the price, second-hand.
First ask yourself whether you really need that new jacket, if yes, ask yourself whether you can get it or a similar product used to save yourself big. While most second-hand products aren’t huge purchases, over your lifetime, making smarter buying choices will help you to create a much larger savings account.