How Millennials Can Best Save Their Money
When you’re just learning to manage your own finances, the thought of saving money can be stressful. But if you can develop effective saving habits from the very beginning, it will be easier to create a substantial savings account.
If you’re a millennial looking for the best ways to start saving your money, try out these tips and tricks:
Before you can begin saving money, you need to be realistic about what you’re spending and how much you can actually afford. When you’re getting your first few paychecks, it can be tempting to want to purchase a new car or get a luxury apartment for yourself. But while they may be great for a month or two, you’ll regret those decisions when you’re struggling to make ends meet.
If you’re serious about saving and it is an option, considering moving back in with your parents for a few months. If you can pocket what you would spend on rent straight into your savings accounts, you’ll see it build up quickly. If that isn’t an option, get a roommate or two. Splitting your utility bills will leave more money in your pocket.
Learn to Cook
Spending money on eating out can quickly add up. Unless you’re going out for a special occasion or a once-in-awhile treat, learn to cook meals at home. Even things like coffee, burgers, and pizza can cause you to spend much more on dining out than your budget allows.
Create an eating out budget to give you some room to still have fun, but try to reserve it for events or meals with friends instead of ordering delivery. If you’re eating at home, try to create a home cooked meal – even if it’s just a simple pasta dish.
Use a Budgeting Tool
Budgeting can seem like a hassle, but when you have a tool that automates it for you, you don’t even need to think twice about it. With online programs, you can enter in your financial accounts and allow the program to classify each purchase you make. You can use the tool to simply see where all your money is going or to create budgets and help yourself stay on track.
There are a number of tools out there that each perform different tasks. Do some research, play around with different programs, and find the one that works best for you.
Put Money Away Immediately
With each paycheck you get, put a certain amount away as soon as you are paid. When you get the money out of your sight, it is easier to forget that it is there and you won’t feel tempted to spend it.
Pick either a set amount of money or a percentage of your paychecks to save each time you are paid. While it may seem like a small amount at first, it will quickly add up as you contribute more and more.
Avoid Credit Cards When Possible
Credit cards can be great for making a short term purchase, but if you’re serious about saving money you should never put a charge on your card that you don’t know how you will pay off. When you can buy things without money coming out of your bank account, it is easy to go overboard. If you don’t have the money when a payment is due, your credit card interest can quickly accumulate, charging you even more for the items and hurting your credit score.
Unless it is absolutely necessary, such as in the case of an emergency, avoid using your credit card for things you could use cash. If things do get out of hand, you can always find the best credit repair company to get back in shape.
Saving money doesn’t have to be difficult. These tips can get you started on the right foot.
By Kevin Faber
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