Just like everyone else, millennials also seek help to save money for getting around their monetary goals in 2016. According to a report, 41% of the millennials are in debt to around $47,689 and want to increase their savings in the coming 3-5 years. The good news is, blogs like FreebiesDip are here to assist financially-troubled people; however world’s renowned money experts have also come for a rescue to assist millennials in accomplishing their “stretch your dollar-save money” goals for this year.
Stretch Your Dollar
Nicole Lapin, renowned author and a financial guide, suggests creating a support system to help each other in times of need. For instance, instead of going shopping, search for clothes and other accessories in your friend’s closets, as it’s often said, one woman’s waste is another woman’s come up. Similarly, having a get together at your friend’s home instead of dinning at some restaurant will save money.
Switch Your Job
A full-time job requires you to spend 40 hours a week, but if it can’t fulfill your financial goals in 2016, consider replacing it with a better one. Reportedly, 57% of millennials are unable to earn enough money for fulfilling their goals.
Clark Howard, New York Times-selling author, suggests searching around, dropping CVs in the relevant companies to land a well paying job in a company, suited to your skill set.
Plan for a Rainy Day
Around 68% millennials shared planning for a holiday in the Millennial Money Mindset Report. Even though saving for an exotic trip sounds amazing, Whitney Johnson, a best-selling author and analyst, suggests otherwise. According to her, saving for emergency situation(s) should be the first priority. Emergency savings will help in getting around financial complications that may occur in 2016.
Be in Control of Your Money
Dave Ramsey, the best-selling author for multiple personal finance books, suggests taking control of your money. Instead of wondering and worrying about where all the money went, be proactive, plan a budget and spend accordingly. Not only this tip by Dave Ramsey works to save money, but it also goes a long way to help you get rid of any unwanted debts. Every dollar that is wisely spent will eventually help in saving a few bill rolls in the long run.
Plan for Near & Distant Future
The millennials forget to plan for the distant and near future, as they focus only on the present financial needs. However, planning for retirement and near future milestone such as marriage, home ownership, at the right time will help in avoiding debts and enjoy a financially constrained life. Payroll deductions are an excellent way to leverage the benefits of compound interest, when planning for retirement. Investment education will also offer a lot of knowledge required to make the right decisions.
Invest Without Losing
No matter how much a year promises personally or financially at the start, no one knows what it truly holds for us. The Millennial Money Mindset Reports 30% millennials to earn less than $25,000 per year; money is surely something they can’t afford to lose when making investments.
Track Your Finances
Financial experts suggest keeping a track of your finances while creating a budget. Whether you are using a spreadsheet, an app or a piece of paper folded in your pocket, you should calculate your financials considering your income and expenditures. Not knowing the exact financial figures will only result in overspending.
Set your financial goals for 2016. Instead of spending your money carelessly shopping for clothes, food or some extracurricular activities, save some amount. Start with short-term goals such as saving $100 from the next two paychecks.
Pay All Your Credit Card Debts
Using credit cards is not only a strong way for building credit history, but also helps in earning a number of rewards. The Credit Card Guru, John Ulzheimer advises to take care of the credit card debt. Do not buy more than you need to, it will only result in a bump in your debt. Additionally, this will not only lead to a bad credit card score, but will also make you spend more money due to the accumulated interest. Pay your credit card bill in full on time every month.
Plan to Pay For Student Loans
Analyze your student loan situation and plan something to pay it with the least amount of accrued interest to save money. Mandi Woodruff from Yahoo Finance suggests exploring different resources to find a way for paying down the amount quickly.
Do not Always Say Yes
FOMO stands for “Fear of Missing Out.” Cara Brett, the director of Bounce Financial shares that FOMO is affecting the financial condition of a number of millennials. Though socializing is crucial, at times it becomes imperative to take the financial responsibility and say no. Going out often means paying for the food and drinks bill. On the other hand, declining an invitation by hanging out at home is a feasible way to save money.
Tony Robbins, entrepreneur and best-selling author, proposes investing money wisely, minimizing all the chances to lose huge if not all your money. Investment works by a simple rule — do not lose what you can’t afford. Many large business entrepreneurs such as Sir Richard Branson go by this investment rule.
Although saving money isn’t as easy as it may sound, taking the aforementioned baby steps would put millennials on the right track to combat the financial crisis in 2016.