Being a millennial, you will always find yourself on the receiving end of financial advice which either seems over your head or something apparently impossible. The majority of the personal-finance articles don’t take into account the unique state the current generation is going through. Around a quarter of 18 to 34-year-olds have a bachelor’s degree but this degree comes with a cost. A staggering 75% of recipients of bachelor’s degrees have taken out student loans and their median debt hovers around $35,000. In fact, as per a recent survey, 35% of recent graduates would even love to sell off their body parts to get rid of their debt.
Given these statistics, it’s no surprise that millennials are having a tough time following financial advice. But what exactly can they do to save their dollars? Here are few tips that they can follow.
Either move back home or get a roommate
Even if you fall for a nice luxury apartment, don’t get it for yourself as this is not the time to splurge. Instead look for roommates as splitting utilities and rent is one of the biggest ways in which a millennial can stay in his city, lead an average life and yet save money. Although sharing your room with others is an entirely personal decision that you may not feel is right for you, but at the end of the day, when it comes to the financial benefit, it is undeniable.
Get yourself a low-interest rate credit card
When used in the right way, credit cards are more like valuable tools which help you build credit and offer you practical and useful money management skills. Numerous reward credit cards offer benefits like redeemable points for cashback and travel but making such cards work takes diligence and planning. If it’s your first card, make sure you choose one which doesn’t allow you to accumulate a lot of interest rate. Also, remember that the perks won’t be worth it if you only use the card for emergencies.
Skip the Starbucks
There is just something great about that Starbucks you think you can’t give up. But no, this is also something that should be stopped immediately. Cutting down on all your money-draining habits is pretty hard but you have to start small and gradually move towards the bigger options. If you could even save $1000 in a year, that is even a good option for you.
Automate your accounts
Another way out is to automate all your accounts. If you are not much habituated with saving, put your accounts on an auto-pilot so that you can save enough without having to remember the date of saving. The pre-fixed amount will automatically be transferred from your checking account to your savings account.
Therefore, if you’re wondering about how you can save money despite being a millennial to stay on the right financial track, take into account the tips mentioned above.