Today’s economy is not so encouraging for young people to be able to save more money. The rising cost of living, the housing market, and education are just some of the problematic things that millennials need to worry about. In addition, they have to deal with mounting student loan debt and stagnant wages. If you’re one of these millennials struggling with finances, this article will come in handy. Luckily, there are ways to manage your money better without sacrificing your lifestyle or standards. Here are some simple tips that can help you save more money on a monthly basis and invest wisely for the future.
Live frugally
While it’s true that you can’t always control the state of the economy, you can control your own spending. The FIRE Movement, also known as financially independent retire early is a movement where individuals learn to live frugally, save and invest. It has become a common trend among millennium and Gen Z because they wish to be able to financially retire earlier. Here are some ways that the FIRE movement used to stretch their dollar more:
Find alternative sources of income
Are you a college student with an abundance of free time? Having a side income or side hustle is one of the great ways to make an additional source of income. In this digital era, finding a side hustle is becoming increasingly easier. Take for example taking care of pets, I love taking care of pets and wanted to make an additional income from it. All I needed to do was simply research taking care of pets for income, and the internet provides all the information. Which I found Petbacker and made pet boarding my side hustle income. That is how easy it is to start a side hustle!
If you are interested in having another source of income through side hustling but don’t know where to start. Do check my other article on the top 10 easy side hustles for anyone to try out.
Food
Eating out every night is not only expensive, but it can also easily add hundreds of dollars to your monthly budget. Eating in is a great way to save money and still eat healthily. Some FIRE activists have even gone so far as to grow their own fruits and vegetable in their own backyard in order to cut the costs of having to go to the supermarket and buy fresh vegetables.
Apart from that, buying groceries from your local supermarket can be expensive. Shop for groceries online and buy bulk instead and you can save not only a significant amount of money but also delivery fees(most companies provide free delivery after hitting the minimal spending) and time traveling to the grocery stall.
Do not impulse buy
Impulse buying is something that happens to almost everybody. Fancy that new game? Want to stay in that fancy hotel for your holiday? If you want to get your finances in order, you need to avoid impulse buys at all costs. Having a proper spreadsheet of your requirements and wants might help you discern between what is important and what is not that significant. Set aside money that you will need to spend and have a small portion of it as “entertainment expenses”.
Exercising
Health is wealth. Everyone needs to have some form of exercise to get their bones and muscle strength in order to do our day to day activities. These days, the hype of fancy luxury gyms has been going around as ‘the best gym to be working out. If you’re paying for a premium gym membership, you’re wasting money. There are plenty of cheaper gyms out there that offer just as good, if not better, service as the more expensive ones. Calisthenic, or bodyweight exercise is a great way to keep your muscle strength and it helps with strengthening the body’s full range of motion.
Home
Minimalist or minimalist living is not a new concept. The idea of getting rid of clutter and, to use a colloquial term, “stuff” has been around for a while. In fact, there are references to minimalism throughout history. The practice, however, did not become widespread until the twentieth century, when writers, photographers, beatniks, architects, and, most crucially, artists adopted the concept.
Home these days is now integrating the idea of minimalism as it has many forms of mental benefits. Minimalist environments are easily identified by their crisp, clean, clutter-free, and monochromatic appearance. The de-cluttering of space aids in the de-cluttering of the mind and the creation of a sense of visual serenity.
Automate your savings
If you’re serious about saving more money, you need to make it an integral part of your life. You should aim to save a certain portion of your income each month, regardless of how much you make. In order to do this, you have to make sure that an appropriate amount of money is coming into your checking/savings account each month. This can be done through your payroll. Alternatively, you can link your checking account to an online savings account. This way, a certain amount of money is transferred from your checking account to your savings account each month. In my early days of saving up for my emergency fund, I used Money Manager to help track my finances instead of having to write down all my expenses on a piece of paper.
Consolidate your debt
If you have high-interest debt such as credit card debt, student loans, or a car loan, you need to start looking into ways to consolidate that debt. You can get a lower interest rate if you consolidate your debt through a debt management program. Debt consolidation services are available if you have bad credit. You can also try to negotiate a lower payment with your current credit card company.
If you have a lot of different types of the underlying debt, be sure to use the debt snowball method to remove your debt. This method is commonly used to remove debt by tackling the ones with higher interest rates or easiest to clear debt. By slowly chipping off your debt, you will find that your debt will be easier to clear that way.
Have a game plan: invest in market-based assets
A great way to save money for the future is to invest in market-based assets, like stocks or real estate. Before you start investing, however, you need to create a game plan. Investing is not something that you want to do haphazardly. It’s important to sit down, make a budget, and strategize how you want to invest your money. Investing in the stock market is risky, but it can also lead to huge gains.
If you have some extra cash that you can afford to risk, stocks are a great place to start. What about real estate? Investing in real estate can be very lucrative, but it can also be risky. If you decide to invest in real estate, make sure you have a sizeable amount of money to put towards it. Real estate is not a get-rich-quick scheme. Investing can be risky, but it’s also one of the best ways to save for the future.
Make your home eco-friendly and efficient
Saving money on your energy bills is a great way to free up some extra cash each month. It will also help you reduce the amount of greenhouse gas emissions you are putting into the atmosphere. There are several things you can do to make your home more eco-friendly and efficient.
- Change your HVAC filter – This may seem like an unimportant change, but it can make a big difference. You can also install a programmable thermostat to save even more money.
- Buy a smart refrigerator – Newer refrigerators cost less to run and can help you reduce your carbon footprint.
- Install solar panels – Solar panels can reduce your electricity bill by 75% or more.
- Fix any leaks – Leaky faucets and pipes can cost you hundreds of dollars per year.
- Install LED lights – LEDs use 75% less energy than incandescent bulbs. You can also use smart switches to turn them off and on remotely.
Conclusion
Saving money can be difficult, especially when you’re young and have lots of expenses. But it’s important to start saving as early as you can, and the earlier you start saving, the more time your money has to grow. If you follow these tips, you can make the most of your income. With a little bit of effort, you can start saving more money and preparing for a financially stable future.
