Life can be a real financial struggle sometimes, especially when you’re in your 20s. Ever since I moved out of home at 18, I’ve worried about money every single day. As a millennial, we shouldn’t be spending all our time being worried about our finances, but instead living life to the fullest. It’s important to develop good financial habits from an early age, especially if you’ve just moved out of home and have started living the millennial lifestyle. So, I’ve compiled a list of tips and ideas for us – the Millennials, so we can eventually say we no longer need to worry about money.
1. Put away 10% of your paycheck
As soon as that paycheck comes through to you, immediately calculate your 10% and put it away in another account. Did I mention you’re not allowed to touch this stash of cash? If you don’t have a dedicated account for this, it’s time to visit your bank!
2. Learn to cook your own food
I love eating out as much as the next person, but it takes a serious toll on my bank account. So, I’ve learned to master the art of meal prep! I know, it’s very tempting to not miss out on sushi dates, pie outings or donuts, but I bet you’ll look at your account at the end of the week and feel guiltier for the money you spent than eating that donut. Try to limit yourself to one outing per week and see how much you can save!
3. Brew your own cup of coffee
Allow me to put something into perspective for you. Say you buy a cup of coffee every day of the week for $4.50. That’s $31.50 per week…that’s $1638. That’s a flight overseas. Enough said. So people, start to brew your own coffee at home or take full advantage of the free coffee at your workplace.
Investing is a way you can make your money work harder for you. Just be sure you educate yourself first before entering into any transactions. Knowledge is power in this industry.
5. Limit your visits to the Bank of the Parents
Yes, your parents love you dearly and they want to give you money. But it’s time to start being a bit more independent and taking control of your own finances. You’ll also probably find you’re a bit more conscious when it’s your own money you’re spending.
6. Think before you buy
Are you an impulsive shopper? Try this little tactic out next time you have a burning desire to splurge. Just take 30 seconds to actually THINK about your purchase and ask yourself, “do I really need this?’ or, walk out and think about it overnight. If it’s something you don’t really need, you probably won’t come back to buy that item.
7. Turn off your wall power
A little can go a long way! Turning off your wall power is a great habit to get into and in the long run can save you money on your electricity bill.
8. Buy bulk on sale
This one does not include junk food when it’s on sale people. We are trying to fatten up our wallets, not our bodies. See something on sale? Why not buy in bulk so you save your future self some moola.
9. Identify your goals
Have a real good think about this one and write them down! Make sure you always refer back to them and keep them in a place that is visible to you.
10. Have an emergency fund
The future is so unpredictable so it’s important you have some money stashed away that will help you get through at least 3 months without having to work.
11. Track your savings
I’m a big fan of spreadsheets and I use a weekly budget tracker to record all my expenses. I can also see how much I’m saving on a weekly basis, which gives me more motivation to save even more money the next week.
12. Have an interest in interest
How much interest does your bank account give you? Not sure? You may want to find out! Choose a bank that will enable you to maximize the interest you earn and do your research.
13. Monetize your talents
Are you really good at something? There’s probably a way to turn that talent into income. Start getting creative if you want to set up a side hustle.
14. Buy a car that is within your price tag
Your young, you want a fancy, cool car…I get it. But, taking out a massive loan for a car whose repayments are way above your pay grade is just not the way to go. So, unless you can actually afford it, be practical when looking to buy a car and buy one with an affordable price tag on it.