Are you the kind of person who ends up with around $10 left in their current account when you’re still two weeks away from payday? If so, then you might need some financial assistance.
Today’s millennials are living in a complicated world cash-wise. Our generation is plagued by everything from high levels of debt from student loans to low-income levels. What’s more, financial predictions in the US indicate that millennials may be further off from retiring than we’d like too. Because of this, it’s important to learn quickly how you can take care of your finances.
Unfortunately, balancing your spending and saving strategy isn’t always easy. It takes time to find a strategy that works for you. The good news is that we have some tips to help.
1. Make Use of Tech
Technology is a common thing in a millennial’s life – so why not make the most of it? There are apps and tools available today that can help with everything from tracking how much you have left to pay on your student loans, to figuring out how much you can afford to spend on a night out with friends.
You can even get apps for your computer that automatically apply discount codes and vouchers to any purchase that you make, so you’re never paying over the odds. Get online and see what kind of tools could help you to become a savvy spender.
2. Keep Track of your Subscriptions
We’re all huge fans of subscriptions these days. We use them for everything from food deliveries, to streaming services and more. Unfortunately, it’s easy to end up with more subscriptions than you know what to do with.
With that in mind, make sure that you have a regular list of all the subscriptions that you’re paying for. You can even class things like broadband and energy bills as a “subscription” if you prefer. When you can track these expenses efficiently, you can more easily determine which ones you need to get rid of when finances are tight.
3. Keep an Eye on your Credit Score
The younger you are, the easier it is to ignore your credit score. You assume that it’s not a big deal, until you start applying for mortgages and car loans via sites like Readies.co.uk, and realise that no-one will accept you without an excellent credit rating.
The good news is that there are plenty of tools online that can allow you to check your credit score for free. The more you watch your credit, the easier it will be to make decisions about your financial health. If your credit isn’t exactly perfect, then you can start taking steps to improve it, like arranging direct debits to ensure that all of your bills are paid on time.
4. Invest your Change
You don’t need to have a lot of money to begin investing in your future these days. You could build your chances of huge amounts of wealth in the future with just a little small change. Apps like Acorns allow you to invest your small change into businesses and see a return on your investment.
You can even avoid the apps entirely and just start putting your spare cash into a jar. The money that you build up at the end of the year can be placed into low-cost investment opportunities with the help of a financial advisor or the right firm online.
You might even discover that your bank has a system in place that allows you to put the “change” from your purchases away into savings accounts and other investments if you ask.
5. Use Cash for Your Problem Areas
Credit and debit cards are way too convenient. We use them for virtually everything, and this often means that we end up overspending without realizing it. If you know that you’re the kind of person who tends to spend more than they should in certain areas (like buying clothing or eating out), then consider using cash online.
An envelope strategy, where you give yourself only a certain amount of physical cash for certain items each month, can force you to stick to your budgets more often. What’s more, spending real money instead of using plastic helps you to remember the real value of cash.
6. Make One Change at a Time
Finally, transforming your spending habits isn’t something that happens overnight. You’ll need to give yourself time to adapt to new behaviors. With that in mind, don’t try to accomplish everything at once. Instead, implement one small change at a time. For instance, this month, you could cut down on the amount of times you order take-out.
Next month, you might decide that you’re going to cancel one of your subscriptions, and the month after that, you could work on cutting down grocery costs. Slow and steady is a good way to go.