November 22, 2017, 2:44 pm

How millennials can save money

by: The Financial Blogger    Category: Financial Planning
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Group of young people using laptop.

The millennial generation – generally considered to be those born in the last 20 years or so of the 20th century – face many different financial challenges. Many of them are paying mortgages for the first time, or else are trying very hard to save enough to get on the housing ladder. At the same time, they may be paying off student loans and other debts, whilst trying to pay their regular bills, and enjoy a decent social life.

Wonga South Africa recognises the financial challenges faced by today’s millennials, and has published some money saving tips on its website.

If you are a member of the millennial generation, the company’s advice includes:

  1. Put together a budget. Work out what income you have from various sources, then work out what you spend each month on food, clothing, mortgage and debt repayments, transport, utilities, telecommunications, insurance and other areas. This will then show how much you realistically have left to spend on entertainment, socialising, hobbies and other areas that might be classed as ‘discretionary’ or ‘non-essential’ expenditure. There are many different budget planning tools on the internet that you can use free of charge
  2. Be selective when it comes to your social life. Although you may have an understandable FOMO (fear of missing out), it is not realistic to accept every social invitation that comes your way. Decide which social occasions are most important, then place the money you have saved from declining your other invitations into a savings account
  3. Cut down on your treats. Do you really need, for example, to buy your lunch at the most expensive café in town, or to regularly buy high-end, designer clothing?

Other money saving tips for millennials include:

  1. Shop around for low borrowing costs. Before taking out a loan, or borrowing on a credit card, consider how you can do this as cheaply as possible
  2. Audit your subscriptions. You might be paying all manner of subscriptions, such as gym membership, internet services such as Netflix, magazines and online newspapers, sports clubs etc. Are there any of these that you’re not using, or are hardly ever making use of? If so, maybe it’s time to cancel them
  3. Find the telecoms plan that best suits what you need. You may be paying for phone contracts that provide all manner of features that you don’t need, while you may also be paying for TV channels that you never watch
  4. Compare prices. The internet allows you to compare the costs of many different goods and services before you buy. Searching the internet can also alert you to special offers and discount vouchers
  5. Identify your costliest debts. When paying off your debts, prioritise clearing those with the highest interest rates
  6. Find the best savings rates. If you are able to put some money aside each month, shop around for the savings accounts with the best interest rates

 

Image Credit: The Odyssey Online

 

 

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