10 Simple Money-Saving Hacks for Millennials

10 Productive Money-Saving Tips for Millennials

Millennials are earning pretty well, but they save much less compared to older generations. Millennials don’t have good amount of money parked in their accounts to support big decisions and are hence, stressed out. Saving money can be tricky but if one is wise and follows certain practices, they can save enough to enjoy life and even retire early. Today, we are looking at 10 ways millennials can save money.

1. Avail of the benefits of a student credit card

Having a credit card when one is a student might seem pointless as well as risky. But not having a credit card means no credit history and can lead you to spend a chunk of your savings when you plan to make a big purchase few years after college. So, it is advisable to take credit cards which are built specifically for students. Such cards are designed to prevent the user from overspending, so you won’t end up in too much debt. In this way, you can build a good credit history which you can use once you graduate and plan to make a big financial move.

2. Open a savings account online

Having an online savings bank account cuts down on the hassle of visiting the bank again and again. One can directly save money by making an online transaction which is even reflected in the account within a fraction of time. In addition, banks pay good interest on the money parked in the savings account, due to which your bank balance increases gradually. So, make it a habit to save some money every month and directly deposit it in your online savings bank account.

3. Drive second-hand or used cars

One might need a car for their day-to-day commute. The prices of cars are rising, and new cars come with high insurance costs as well. To purchase a new car, one might need to take a hefty loan which can eat a big chunk of your monthly income. So, it is better to purchase a used car. There are plenty of companies that sell used cars, and if you are lucky, you can easily get a used car in good condition, which can save you a lot of money.

4. Understand your credit well

One's credit history affects their financial decisions and also the quality of their life. So, one must track their finances regularly and keep a check on where they are spending. There are plenty of mobile applications available these days, where one can constantly track down their expenses. Some of these applications even can read text messages and bank statements to automatically fill in the details around expenses and share with you weekly or monthly expense reports which can provide insights into your spending.

5. Make sound investments

The money sitting idle in your bank account is not doing you much good as it can hardly beat the rising inflation. So invest your money wisely in different avenues. It is advisable to invest in multiple options, as diversifying the investment portfolio cuts down the risk. If you don’t have enough knowledge to make investment decisions, always seek the help of a financial expert to make the right call for you. Good investment decisions can help build a good bank balance in a short period.

6. Earn extra through side hustles

The best way to save money is to have an extra source of income. Explore a side hustle that you can continue while doing your regular job. A side hustle could be something like doing commercial photography over weekends, delivering items in free time, driving an Uber, or providing a consultancy service. A side hustle can help you increase your net income, and extra income means more money to save. Sometimes side hustle start low, but might gradually overpower your regular job income, so you can decide to make it a full-time career decision.

Most of the service companies out there run on a subscription model, where they ask the user to subscribe every month to use the service regularly. What happens next is that one might forget the service they subscribed to and may not even use it any longer. But the companies will continue to charge you regularly and that can affect your monthly savings. So take your time, and review the subscriptions that you have. Unsubscribe from the services which are no longer needed. You can always subscribe later with a few clicks if needed.

8. Prefer home-cooked meals

The cost of food is one of the largest expenses for an individual, and this cost is impossible to avoid as food is a basic necessity for everyone. So, the only way you can bring down this expense is by cooking your meal. Meals cooked at home cost a fraction of the price as compared to one at a restaurant. In addition, cooking is a great way to relieve your stress. So make it a habit to pack your lunch. One can easily save hundreds of dollars every month by avoiding restaurant food.

9. Automate bill payments

Paying bills on time is something that almost all of us have missed at some point of time in our lives. But when a bill payment is made beyond the due date, a huge penalty is charged and the credit score is affected, which can impact your credit-taking capacity in the future. So, one must track the bills and set reminders to pay bills on time. It is even advisable to set up automatic payment of bills from the bank account on a fixed date.

10. Encourage budget journaling

Preparing a budget initially can be a tiring exercise. However, it is observed that the people who build the budget save more in the long run than those who never made a budget. Sticking to a budget can be challenging initially since one might become too conservative while building the budget. It is advisable that when you start with your budget, for the first few months, be a little liberal. As you start staying within the limit set by you, trim the budget gradually, to start saving more.