Millennials are financially worse off than previous generations, according to new reports that you're probably seeing in every major media out. So how can you save when you live paycheck to paycheck?
When it comes to saving, the struggle is real for many of us. By the time we’ve paid for rent, food, bills, and the odd luxury, there’s rarely much left to get ahead with our finances. According to a study by investment bank Credit Suisse, Generation Y is struggling with the burden of more student debt, less inherited wealth, and bigger hurdles to secure a mortgage.
“The Baby Boomers messed things up and millennials are paying the price,” says entrepreneur and business mentor Lucy Cohen. “The economic challenges we face are tougher and more uncertain.”
In her new book, ‘The Millennial Renaissance: How to Thrive for the Rest of Your Life,’ Cohen has laid out an actionable plan to help her generation get ahead. Here are her tips on how to flourish financially:
Don’t Be Late
It’s not cool to pay bills late, not just because companies need money to pay their staff and your late payments might impact that, but also because it might impact your credit rating. Having a bad credit rating seriously affects your choices when it comes to borrowing money. Try the app BillTracker to keep on top of what you owe and when.
Stop Frittering Your Money Away
Impulse purchases are such a universal problem. Yet, hardly anyone in the world can afford every little whim and luxury. Sure, it would be lovely to have that new pair of shoes because they match your outfit, but do you really need them? It’s so easy to buy with one click but think before you buy.
Save Some Damn Money
A wise person once said; “You can’t afford to buy something unless you can buy it twice.” Try not to spend all your money each month. If you get to the end of the month and you have fifty dollars left, don’t blow it. Put it away as savings. Life happens and sometimes we have to pay for unexpected things. Apps such as Acorns or Digit save small amounts of money for you painlessly. Before you know it, you’ve saved a bit of cash for a rainy day.
Check Your Bank Balance Every Single Day
Not checking your bank account is like doing your grocery shopping without checking what you already have - it’s stupid. Maybe you’re scared of the stark reality of your finances but not knowing how much money you have won’t make you richer. Checking everything is in order is a simple way to stay on top of things and make sure your card hasn’t been cloned.
Get A Side Hustle
Are you willing to give up a few hours a week to achieve your goals? The income from a second job could give you an extra budget for frivolities or savings. The point of a side hustle is it gives you something extra. It could improve your quality of life.
Build A Residual Income
People are willing to pay small amounts for good content and entertainment. And if you get a lot of people willing to spend a small amount of cash, you end up with a lot of money. The trick here is to choose something you already love so it doesn’t feel like work. You need to live and breathe it and be in for the long haul.
For example, some dedicated You Tubers who remain passionate and consistent with their content have gone on to earn millions. The appetite for podcasts is also on the rise. Check out Patreon, a platform that allows fans to donate a small amount each month to their favorite content creators.
Finally, there is blogging. Some food bloggers never have to pay for a meal out and are able to use the money they save to invest in other things, while travel bloggers get to experience the world on someone's dime. And fashion and beauty bloggers get plenty of freebies! Find something you love and capitalize on it.
Charlotte Ward is a British writer, tree hugger and toddler entertainer. She is based in California where she can be found enjoying the outdoor life with her husband, son and hyperactive dog-child.