How to Save Money for Millennials

This year I have challenged all of my friends to go out and get a savings account if they don’t already have one. I have always been pretty responsible with money, even at a young age, and that frugality has followed me into adulthood. I have had a savings account, separate from my checking account, at least since college and though the balance has varied at times, savings is always a part of my life plan. It can be very hard to save a much as we want when we have to pay student loans, rent, and other bills but there is always an amount we can commit too. Sometimes it just takes a little strategy and extra discipline. Even $60 a month for a year equals $720. That’s extra Christmas shopping money if nothing else!

In the end, having a savings account is a smart choice. You never know when you may suddenly end up unemployed, in need a housing alternative or called to travel on short notice. Handling these situations is just part of what we millennials call ‘adulting’.

Unfortunately, financial responsibility is not always taught but we have the internet at our disposal 24/7 so it’s time to educate yourself! In other words, no. more. excuses!

Inc.com lists 10 great tips on how Millennials can save money. I think many of these can apply to all age groups even though the article is geared towards us Gen Y’ers. This piece offers great advice. I already utilize tips 1 & 4, much to the benefit of my savings account! See which of these tips you can implement in your life this year, maybe you can even make them a part of your s.m.a.r.t goals for 2018.

Let’s Save some Money!

via inc.com

1. Set an automatic deposit on the same date as your paycheck.

This is rule number one. The day you get your paycheck, set an automatic transfer from your primary account to a savings account that automatically deducts 10% from the top.

Most people can’t fathom doing this. They say, “I can barely pay my bills as it is!” Ok, that’s not a valid excuse, and worse, it’s one that will keep you trapped forever. If all of sudden your job really did pay you 10% less, you would have to figure something else out. You would pick up a side hustle. So impose that 10% tax on yourself and let your savings start accumulating. Trust me, whatever you were going to spend it on right now, you won’t remember a year from now. But what you will remember is the extra $1,000+ you have in a savings account from this tactic.

2. Turn off your lights. Seriously.

This sounds overly simple but the month you have an expensive electric bill you’re going to be shocked. Utilities–electricity, gas, Internet, etc.–all add up fast. One of the worst habits you can have is to leave the heat on all day when you’re gone, or never turning off your lights. And if you really want to get competitive with it, go use something like ElectricRate so you can find the least expensive provider. It’s a no-brainer. You take the time to get your utilities down to the lowest cost possible, you set up automatic payments, and then you never have to worry about them again.

3. Use Mint to see where your frivolous spending is, and then cut it.

One of the best resources out there for money management is Mint. You can connect your bank accounts and credit cards and it will organize your spending based on categories you select. At the end of each month, you’ll get a pretty good sense of where your money is going.

When you do this, you’ll quickly realize that those $2.49 coffees you buy every day add up, fast. So take that, buy a coffee maker, and see if you can cut that spending in half. Then take the half you’ve saved, and put that in your savings account each month. It adds up.

4. Make your lunch instead of eating at restaurants.

I made my lunch every single day at work for four years after college. The only time I would eat out at a restaurant was Friday night, which was my “treat” to end the week.

It’s amazing how much money you save when you buy groceries and cook for yourself instead of eating at a restaurant. The average restaurant bill for a casual meal is around $15. You can make the same meal at home for roughly $5. Again, track how much you spend at restaurants, trade out some of those meals for home-cooked feasts, and put the difference in your savings account.

Click here to see the remaining 6 Tips on Inc.com

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