Find out how the generation of reckless spenders can save money and reach their financial goals.
If you are born anywhere between the 1980s and the 2000s chances are you’re familiar with the word ‘millennial’. And chances are it’s been said to you a few times too. And not because you ’re innovatively brilliant but rather because you are a somewhat self-centered, entitled dreamer who can’t save money and spends more money on comforts such as Uber, overpriced coffee and avocado toast than any generation before them. The world seems to have come to a standstill trying to understand this new complexed generational group. The common understanding about millennials is that they are bad at saving money and that all their money problems come down to their poor spending habits.
The world tends to forget that the millennial generation hasn’t had an easy relationship with money, in fact, this generation came of age amidst the worst economic climate since the Great Depression. They were lumped with a poor housing market, a crumbling job market and the weight of their crippling student debt. It’s hard for them to save money when they have no money to save. Despite all this, these millennials are changing the way the world spends money and South Africa is no different with the millennial generation representing 27% of the consumer population. There are ways for millennials to reach their financial goals, whether it’s buying that house with the picket fence or investing in a future of financial stability.
Make It Personal
It may sound like a feeble attempt to stop you spending and save you money but personifying your savings account can make a big difference. Instead of having your savings account reading: ACC 45678320 when you log into your bank account, change your savings account name to the something specific that you are saving towards – something like; “Quit Your Job 2019” or “Dream House”. Changing the name of your account to something more goal-oriented reminds you why you’re saving, this makes it harder for you to dip into your savings for unnecessary payments. It also helps to incentivise you to make regular payments into that account.
50 – 30 – 20
While life doesn’t always abide by the rules there is one age-old rule called the 50 – 30 – 20, that can help jolt your finances into the right direction. The rule states that you should spend 50% of your income on the necessities, on your fixed payments such as housing, transportation, insurance and other bills. The other 30% of your income on your wants and desires, this 30% is for all your entertainment needs for the month, movies and dinners, Uber rides and avocado toast. The remaining 20% of your income needs to go into a savings account or towards paying off any outstanding debt.
Curb Your Cravings
This crash cash diet will help curb your spending cravings and put your spending habits into some serious perspective. This crash cash diet is a short-term solution to a long-term problem, but it can be very insightful as to how you spend your money and where your spending problems lie.
Out Of Site
Move your savings account to a different branch from the one where your primary account is as reduces the ease and temptation to transfer money out of our savings account for unnecessary purchases. It takes two to three business days for a transaction to reflect from different branches this makes it harder to move your funds from one account to another quickly – This stops the ease of impulse buying and prevents you dipping into your savings.
Prove the world wrong with these millennial money saving tips and put more money back into your back pocket each month. The possibility of reaching financial freedom is right around the corner. Contact us at Save Money to find out how we can help you today.