For millennials, saving money is a completely different prospect than it might be for other generations. The typical advice may not entirely fit for those under 30 years of age. With student loans at an all-time high and wages that seem to be stuck, it might seem like saving is an impossible prospect. However, that isn’t true, and we have some tips to help you get started. Combine that with information from Money Under 30, and you’re sure to do well.
Pay Attention to Your Fixed Costs
Whether you have a budget or not, you need to have an understanding of what fixed costs you have every month. The rest of your money can be put into savings or spend on other things. You can go a bit further by looking at other payments you make on a regular basis, like cable, Internet, Netflix, and Apple Music to determine whether the cost you’re paying is worth the benefits you get from the service. If it’s not, cut it, and you have immediate extra money.
Automate Your Payments
When you’re trying to save money, while also trying to stay afloat with your other purchases, there can be a lot of decisions available to you. That can easily catch up to you with decision fatigue. An easy way to drop one level of that is by automating paying your bills. You can do the same with your savings and credit card payments. What is left can be spent on wants, knowing all of your needs are taken care of.
Wait to Buy That First House
In the past, people often bought houses at young ages, but that isn’t always the best option nowadays. It’s a huge commitment in terms of both time and money. There’s nothing that says you have to buy a house while you are young. Sometimes renting for a few extra years will give you extra savings to be better prepared for your first home when you do take the plunge.
Purchase a Used Car
Many people need a car to get from home to work or school to home. While it might seem like a great decision to pick up a new car from the lot, you’re going to lose a lot of the value as soon as you drive the vehicle home. A used car is a better option for many reasons. It will not depreciate as quickly, and often the payments will be much cheaper. This allows you to put more money into savings for emergency situations that come up in the future.
Learn More About Finance
Just having knowledge of finance can help you make better decisions, which will lead to more money in your savings account. A great place to start is the leading finance site for millennials at Money Under 30, but there are other options to check out. Take some time to learn more about what others are doing and look for mentors who can help. You’d be surprised how easy saving money can be when you choose the right techniques.