Millennials have a unique financial struggle. The competitive job market makes it difficult to find a job that earns enough money to pay for all the necessary living expenses and payoff student loan debt. At the same time, millennials are being told to save more and spend less, but that’s easier said than done with rent prices being at an all-time high. Here are a few easy money-saving tricks millennials can try.
Get a Roommate
Since rent is probably one of your largest bills each month, getting a roommate can save you big bucks. According to Trulia, the average Denver renter saves about $405 a month by renting a two-bedroom home with a roommate rather than just renting a one-bedroom home alone. Living with a roommate may not be ideal, but it definitely has financial benefits.
Move Back Home
Another money-saving option would be to move back in with your parents. Doing this for even a couple of years could help you build up your savings and payoff some of that student loan debt. Instead of paying rent, set a certain amount aside for savings and put the remainder towards your student loan debt. This will help you get used to paying rent or a mortgage, and you can use the money you’re saving to eventually get your own place and payoff debt at the same time.
Automate Your Savings
One of the first things you’ll want to do when you get your first job out of college is set up an automatic transfer to a savings account. With every paycheck you get, deposit a set amount into savings. Try saving 10% from each paycheck. If that’s too much, start with 5% and work your way up. When the money goes straight from your paycheck to a saving account, you’ll be less likely to spend it. This will help you establish a good savings routine early on.
Get off to a great start with an EZ Savings Account and EZ Checking Account. These accounts will give you a solid financial foundation and you’ll learn how to budget responsibly and live within your means.
Don’t Just Budget, Manage Your Money Instead
When it comes to managing finances, we could all use a little help. Let technology be your guide. Our free online personal financial management tool, My Financial Partner is a great resource. You can manage all your finances in one spot, track spending, set financial goals, set realistic budgets and stay informed with account alerts.
Being able to see where your money goes can help you adjust your budget and spend less. You might not think much of spending $4.50 each day for a coffee, but when you look at your coffee expenses for the whole month it adds up to $135. Making your own coffee at home could help cut that expense in half. Finding little ways to cut back, can add up to big savings.
Sometimes the only way to save more money is to make more money. When you’re starting out, making an entry-level salary can make it challenging to just pay your regular monthly bills. It’s easy to put saving money on the back burner. Seasonal or part-time work can help you jumpstart your savings and give you a little breathing room. Some side job possibilities include child care, pet care, dog walking or driving services like Uber or Lyft.
Eat Out Less
The same $15.00 meal you get at a restaurant can be made at home for around $5.00. Making your own meals can have a huge impact on your food budget. Preparing a lunch at home and taking it to work helps avoid the fast food temptation. Take an interest in cooking and have fun trying new recipes. You don’t have to eliminate eating out from your budget all together. Maybe you go out every Friday as a way to treat yourself for getting through the week. It’s ok as long as you keep it in moderation.
Set a Savings Goal with Our Savings Calculator
Once you find the money-saving tricks that work best for you, set a savings goal. It’s okay to start out small; maybe you set aside $30.00 a month. If that goes well, add another $10.00 or $20.00 every month. Be sure to set a realistic savings goal so you don’t stretch yourself too thin or get discouraged.
A great motivator can be saving for a specific purpose like a new car, down payment for a house or even a vacation. Check out our free, online savings calculator that can tell you how much you’ll need to save each week to reach your goal.
Getting ahead financially can be a big challenge for millennials, but it’s not impossible. Taking small steps and making small changes in your spending habits can make a big difference.