Guest Post - 8 Budgeting Tips for Millennials

The life of a millennial is harder now than it has ever been in the past. With the ever-growing living costs, job competition, student loan debt, and low income, starting a family or thinking about retirement is more of a fairytale. Despite the higher literacy rate, millennials of the current era are earning far less than previous generations; owning a house and a car has become an unattainable luxury. The elders in your life might constantly advise you to save money, but only you understand that it is easier said than done. If you are hoping to achieve financial stability and quit treading water, the following budgeting tips can help you get there:

1.) Keep Track of your Spending

Most millennials find bank statements and credit card reports so dreadful that they don’t even bother to sneak a peek. Living by the motto ‘ignorance is bliss’, is the ultimate recipe for disaster. If you have no idea where your money goes, how in the world will you establish a budget plan? Examine your receipts and bills to make sure that you are not being overcharged and prevent fraud on your accounts. You will also realize that how the little things add up, and this will motivate you to be frugal in the future.

2.) Avoid Accumulating More Debt

If you keep maxing out credit cards and opt for the lowest monthly payback plans, Chapter 7 bankruptcy might be your only lifeline. Even if you do qualify for bankruptcy, your student loan and other secured debts will remain to haunt you. When you select prolonged payment plans that require small installments, you are in fact signing up to pay extravagant interest rates. Pay off your debts fast if you don’t want to end up paying double of what you initially owed.

3.) Say “No” to Premium Subscriptions

Mobile data, video streaming, gaming, shopping, or whatever, stick to the standard subscriptions. Premium services might get you a few extra frivolous perks, but you can easily live without them, whilst saving a substantial amount of cash every month.

4.) Utilize Public Transport

Owning a car is often viewed as a convenience, yet it only adds to your expenses. Public transport will only cost a fraction of what you pay for fuel, maintenance, and insurance. Taking the bus or train may require some time management, but you will catch on quickly. You can always get an Uber for special occasions.

5.) Make your own Coffee and Meals

Once you start looking at the details of your monthly expenditure, you will gather how much money you waste on readymade coffee and meals. Prepare your Latte/Espresso and sandwiches at home to see a drastic reduction in your overall expenses. You may eat out or go for drinks once a week to treat yourself.

6.) Get a Roommate or Move-in with your Parents

The majority of millennials swear that half of their income goes into housing rent. An independent apartment in the city sounds nice, but it is too expensive and impractical. Get a roommate to cut down that burden into half, and perhaps make a new friend. You should also consider living with your parents if their house is close to work. It might bruise your ego, but at least you won’t be swept down the debt drain.

7.) Look for a Side Hustle

The millennials who are making progress in life and enjoying financial security are the ones who are not solely relying on their regular 9 to 5 job. Many are earning extra cash from side gigs, such as selling homemade merchandise, freelancing, or running their personal YouTube channel. Explore your talents and put them to good use in your free time.

8.) Open a Savings Account

The first step to saving money for emergencies, retirement, or a hefty purchase is to dedicate a bank account to the cause. Ten to twenty percent of your income should be allotted to your savings account each month and you must fight all temptations to break the bank for something irrelevant. 

Author Bio – John Adams

John Adams is a lifestyle blogger who concentrates on health, fitness, and self-development. He encourages readers to fight their fears and overcome obstacles holding them back. He believes that every person can improve the quality of his/her life by incorporating positivity and determination. He loves to share his insight on life experiences and contributes on various online platforms in the same niche.