It’s time we face one of the several accusations cast toward millennials today.
It is true: millennials suck at saving money. College students, in particular, are known for not having money in the first place, yet still seem to spend it the most. Many can relate to getting a paycheck on payday and being broke the following Wednesday; it’s a cycle. In fact, money is a medium. Surely, it’s intended to spend, to exchange. However, not without a budget. Money goes faster than it comes in, and our generation isn’t making the situation any better for ourselves.
But enough with the accusations (we’ll leave that to generation X). A common New Year’s resolution that fails just a quarter of the year is money management. But 2018 can be the year to see it through. With these five tips, you’ll be sure to succeed in managing your income more effectively in 2018.
1. Save more than you spend.
Yes, it’s just that simple. For example, if you are now spending 50 to 75 percent of your paycheck each pay period, try spending 25 percent or less instead. That way, you are saving more and you aren’t living paycheck to paycheck.
2. Set up a weekly/monthly budget, whichever works best for you based on your financial needs, not necessities.
With a set budget, you know when you are stepping outside of your financial limits and will learn to make more rational decisions. It will establish a sense of self-control when it comes to money.
3. Record your expenses.
We tend to blow money when we don’t know how much we are spending. What can look like a small daily expense adds up quick. Take a bottle of soda, for example, you buy a bottle daily at $1.50 for an entire month. It’s only about $2.00 a day right? So, what? WRONG! By the end of the month, after taxes, you have spent about $48.15 just on soda. Is it still worth it? Record your expenses so you know where your money is going, and I can guarantee your path to a healthier looking bank account.
4. Start a coin jar.
I personally always viewed coins as “extra change,” just extra money I could use when it accumulated enough to reward me with a snack. While this was effective, my view changed drastically when I started up a jar for all my loose change. I have witnessed people drop coins, glance back and leave it there, walking away as they continue counting their paper exchange. Call it frugal, but every coin is worth picking up. They add up. Soon enough, you have a good 20, 40 or more dollars saved up that you can cash in at your leisure. It’s rewarding – trust me.
5. Compare Prices.
Before picking up merchandise, it is imperative that you explore your options. If you can find the same product of equal or greater value for a better price, it’s definitely a good enough reason to spend some time comparing the prices.
That’s all for now, folks! New Year, new you, for real this time! Practice these five tips this year and watch as saving money becomes your new lifestyle!