The millennial generation is constantly on the receiving end of both criticism and praise for how they handle their personal finances. The truth is though, that regardless of which side of the pendulum you swing towards, millennials are going to need a savings plan, same as the generations before them did and the generations to come will as well. Bring it back to the basics and tune out the noise of social media influencers, peer group comparisons, and the ‘don’t own’ economy and focus on your own path, your own financial needs, and advocate for your own future.
Know What You Owe
Borrowed money for things like student loans, and car loans can’t be overlooked, but they can be reworked. Learn how you can save money by refinancing your auto loan the easy way, starting the process only takes seconds. A refinance plan allows you to move around the terms of your loan, and results in either lower monthly payments, or reduced interest rates that will reduce the total amount of interest paid out during the life of the loan. Choose the best option and see how much refinancing could save you, it is important to choose the right option. Learning about how making changes to your debt repayment plans can positively affect your overall savings is a beginner step that will serve you as you gain more experience in respecting your finances and saving for the future.
Let the Little Things Add Up
Skipping the $5 purchase here and the $10 purchase there that does not seem like a way to save money, but it is going to greatly impact your savings bottom line both monthly and annually. This does not mean never treat yourself, but do not create habits out of the treats. Simple swaps like having coffee at home vs. takeout coffee and limiting workday lunch purchases will both save you money and teach you the habits needed to stay on top of your savings goals. Consistency is key when learning any new behavior, so check in with your finances at set intervals to recognize patterns to repeat and to eliminate. You do not have to drastically change your life, just learn to throw on an extra blanket instead of jacking up your heat and watch the nickels and dimes add up.
Your phone can create the breathing room your budget needs without you having to do too much. Budgeting and investment apps can track your spending, identify habits, and help to grow your savings. Once you enter in your original details and link your bank accounts should you choose to these apps act as your very own financial advisor. Another perk of leaning on technology to assist you with your savings goals, is the literature that inevitably accompanies joining these programs can help educate you in other areas related to finance that even if they are not applicable now, might be in the future. Customer service features are also beneficial because they can provide instant gratification when seeking out tips or answers to questions when you do not have the time to wait around.