Millennials are often referred to as the generation that struggles the most with money – whether that be saving for a house or just general day to day living. But, there’s actually not a better time in life to create a positive financial situation than the present.
10 Money Tips for Millennials
If you’re not quite sure how to save money as a millennial, then it’s time to look at some millennial money tips to help you get on the right track. Let’s take a look at our millennial money guide with the best money advice and financial tips for millennials.
Don’t Be Influenced By Social Media
This is the perfect millennial money advice to start with, as millennials are a generation of social media influencers, which can lead to some bad money habits.
You can still use social media, but you need to think about how you are using it. Are there any accounts that you follow that make you feel bad about yourself, or encourage you to spend? Take care in remembering that what you see on social media is a highlight reel, and you have no idea what’s really happening behind the scenes.
Follow a Budget
If you want to get ahead with your finances, then one of our best financial tips for millennials is putting together a budget. Budgeting doesn’t sound like the most exciting thing in the world, but it is essential.
All you need to do is write out your income, fixed expenses, and variable expenses. You will then want to do your income minus your expenses, and then with the amount left over figure out what you want to do (e.g. add it to your savings, pay off your debt).
Move Back Home
This isn’t an option for everyone of course, but if you are able to move back home, then this is a great chance for you to save a lot of money. It will be a good idea to have a deadline of when you’d like to have your savings completed by, so you don’t get too comfortable and forget all about saving money while you’re living at home.
Make Coffee at Home
Going out for coffee is something that millennials get a lot of stick for, but it’s not that big a deal if you want to include it in your budget! If you are looking for a way to save money however, it is a good place to cut back on temporarily, as those coffees do add up!
The best thing is that you don’t need to cut them out entirely (perfect for those caffeine lovers!), you just have to make them at home instead.
Take a Lunch From Home
Along the same vein as making your coffee at home, if you’re looking at how to save money as a millennial, you could make bringing your lunch from home a habit. Most people spend a lot of money going out for lunch, but making it at home can cost a fraction of the amount. Remember, batch cooking is the way forward!
Save Small Amounts at a Time
A common way to self-sabotage is to tell yourself that you will only start to save once you can start saving large amounts. Saving is a habit, which means that it is in your best interest to start saving any amount that you can – even if it’s a few cents!
Automate Your Money
When it comes to saving your money, it’s important to make things as easy as possible. If you don’t automate your money, what can happen is we get to the end of the month and then think about what we can put into savings, which may not be very much.
Instead of doing this, set up an automated payment to your savings at the beginning of the month so that you treat it like a bill and don’t have to think about it!
Download the Piggy Chrome Extension to Automate Saving Money When You Shop
Take Public Transport
If you are serious about saving, an area in which you can get a quick win is to take public transport instead of having your own vehicle. When you have your own vehicle you won’t just have to worry about the cost of the vehicle, but the tax, maintenance, gas, and other unexpected expenses will really cut into your savings or monthly budget.
Taking public transport may not feel like the most fun thing ever, but it only has to be temporary if you want it to be.
Start a Side Hustle
A side hustle is something that you do on the side to make some extra money. It could be anything! Even though we have been focused on money saving tips for millennials, earning extra money can be key in making your savings grow too!
There are lots of great side hustles that you can try out, such as:
- Teach a course
- Sell crafty items on Etsy
- Transcribe videos
- Blog on WordPress or vlog on YouTube
- Freelance writing
- Translate documents
- Teach English
- Take surveys
- Programming/web development
- Be a virtual assistant
Save For Retirement
This might just be the most important of our money tips for millennials. One of the best things you can do while you’re young is to start to save for your retirement. Young people are often guilty of thinking it’s really far away, but the sooner you start, the less you’ll have to save, thanks to compound interest.
Make sure you have a retirement account open through your workplace, and try to max it out to take advantage of it.