Finding ways to save money as a millennial can be incredibly challenging; most of us don’t make terribly high salaries to begin with, and the money that we do make often quickly gets eaten up by rent, car payments, student loans, and other similar expenses. And although young enough to often be able to forego regular trips to the doctor, even relatively minor health issues can eat away at the little savings millennials have. In fact, nearly half, 47% to be exact, of all debt collected realtes to health care related bills. Often, millennials can find themselves trapped in a paycheck-to-paycheck cycle that feels like it will never end. If you’re looking to break the cycle, here are a few money saving tips to help you make ends meet.
Start Documenting Early And Often
One of the easiest mistakes to make when it comes to managing your finances is to skip on documenting your purchases and payments. Keep receipts whenever you can, or other records of financial transactions you make. This will help you get an idea of what your spending habits really look like. If you’ve gone paperless, there are apps that can also track your payments and receipts to help you stay organized and on top of your finances.
Ask For Assistance
When it comes to planning for finances, there’s no shame in asking for help. Either look to a trusted mentor for advice on managing expenses and income, or sign up for a class to learn more about financial management. This subject is one that isn’t often taught in schools; there’s no harm in admitting that you don’t know what to do and seeking extra guidance.
Start Talking About Money
In America, social standards generally dictate that you don’t talk about financial topics in polite company or with your friends. However, this cultural norm can be incredibly damaging, and is one that should be left in the past. It’s important to talk about money with your significant others, your friends, and even your coworkers. You’ll be surprised what you learn; you might even realize that you’re being underpaid for your work. For example, the median annual wage for dental hygienists was $74,070 in 2017; if you work in this field and make less than this, it’s important to start talking about money so you and your coworkers feel comfortable addressing the issue of being underpaid for your labor.
Learn To Cut Corners
One of the easiest ways to manage your finances when paychecks are small and money is tight is to cut down on your necessary expenses and extra spending wherever you can. Of course, this means aiming to keep your rent in check and not spending money on frivolous things, but there are additional ways to cut costs on purchases as well. Need to buy a new car to make it to your job? Rather than looking at a more expensive new car, opt for a used one. Between private-party and dealership sales, nearly 40 million used cars exchange hands each year. Moving into a new apartment and looking for furniture? Aim for a neutral color palette to cut down on how often you’ll be tempted to update your home’s look. Simple tricks can sometimes help you keep from spending extra money, giving you more to save for later on.
Saving money as a millennial can be tricky, but these tips and tricks can help you get ahead. How do you plan to make the most of your money with these tips?