Everyone is saying that millennials think differently. They have a different mindset, attitude, and culture when it comes to money. Every day you can see on TV, social media posts, blogs, and books thousands of financial bits of advice for the millennials. However, many commercials advise not to take account of the uniqueness of this generation.
Most of the millennials today can earn money easily. They have a lot of opportunities that the other generations do not have. For example, maximizing the social media expertise of millennials can make thousands of dollars in digital marketing. This generation is spending their profit on short-term goals; that is why they are claiming to be earning less. Moreover, most of this generation is vulnerable to other factors affecting money management, such as early marriage.
According to Goldman Sachs, 60% of the millennials are still renting, and 20% are living with their parents. But there are ways on how a millennial can cope with the challenge:
1. Start to buy your own house rather than renting
When you buy a home before reaching the age of 35, it is leading you to prepare your retirement by the age of 60. Instead of spending so much money on renting a house that at the end of the day you will not own it, buying a home and paying in installment basis through borrower-friendly loan platforms will make it possible for the millennial to make a dream come true.
Buying a house, you must consider all aspects. Some houses need renovations, and some apartments need to be newly built. There are ways to save money. In flooring, you may choose to buy the cost-efficient types of flooring and designs of Pergo dealers Dallas.
2. When renting, get a roommate, if not move back home
Do not get a luxury apartment. Splitting the rent and utility costs will give you much savings. In San Francisco, Boston, and New York, when having a roommate, it will save you at least $700 every month.
Another thing to consider is you move back home with your family. When setting buffer time to live with your parents, it is right for you to adjust and save some money and wait for the right timing for you to live independently later.
3. Avail low-interest credit card only
A credit card is a tool for money management. However, it becomes a problem if you will not use it properly. There are credit cards that offer points that you can redeem when you travel or eat. There are credit card companies that provide cashback programs.
Moreover, the best way to use credit is to use it only during emergencies and not to satisfy your cravings.
4. Buy a decent coffee pot. Make your coffee and skip the Starbucks
Sad to say that spending $4 to $5 of latte every day will give you a grand in a year. Going to Starbucks is only for purposes of stature. When you are at Starbucks, you feel to be trendy and stylish while you are putting a hole in your pocket. The fact is that you are buying an over-priced coffee in Starbucks.\
5. Start from small things
A little penny of savings when added-up will become a massive figure of money. If you have a cable service, instead of buying premium channels, buy the regular ones. Before you leave at home, do not forget to turn off the lights, shut off the faucets tight, and repair the leakage of water pipes.
6. Enjoy public transport
Taking cab or Uber may be attractive, stylish, and comfortable. The cost will be one of the most significant drains of your bank account. Taking the subway will give you an average of $1000 savings every month. In the same way as having your car as you need to spend money to gas up and pay for the parking space. Sometimes, if you are to get caught for a traffic violation, the violation pay is an additional cost.
7. Pack your lunch
According to Bloomberg, more young people are spending more money on dining out rather than on groceries. They find eating outside the home as a convenience and a social event. Bringing yourself to grocery stores and supermarkets and cook food at home will save you as much as $20 per meal compared to eating to restaurants and bars.
8. Be contented and do not be envious in social media posts
Millennials are into social media, and probably 90% of the social media posts that you can read are all fun, exciting, and luxury experiences. A study shows that most of the social media followers and readers result in becoming envy for the positive posts of their friends or rivals.
With this, the envy ones will tend to spend more to be one of those that they can see in social media posts.
9. Know your debts and include the regular payments in your monthly budget
Liabilities are the first reason why millennials are suffering from money problems. Compute all your debts and know the figure of your monthly income. Plan how you are going to pay and how much will you be paying regularly. Full payment of debts will give you freedom.
10. Get some side gigs
If your monthly earning is not enough to pay the obligations, know what are your other skills, or learn new skills where you can potentially earn additional income. You can add your work. One of the simplified approaches is getting some freelance and part-time work online. There are companies that offer an excellent salary package, flexible time, and generous benefits. You can do a part-time job after your regular work.