Being a millennial on the journey to saving money can be, well—just plain hard. When you factor in things such as student loans, credit card debt, and sometimes having to live paycheck to paycheck—saving can unintentionally be at the back of your mind.
While some millennials may believe financial budgeting isn’t important at this stage in life, the truth is—this is one of the most important times and stages of your life because this is where your foundation begins for your future financial freedom.
So to all the millennials out there that are currently struggling to save their coins, here are some tips to help you get started. #financialfreedom
Nickname Your Savings Account
It may have never crossed your mind, but naming your savings account can truly motivate you to want to save so much more. Instead of having the typical “savings account” name for your bank account, changing it to something specific such as “2020 Cruise to Jamaica” or “Start My New Business October 2021” will encourage you to not only save money, but not want to touch that money until it’s time to. The more specific you are in naming your account, the less likely you are to skim off of that saved money.
Reduce Your Subscriptions
Month after month recurring subscriptions begin to add up. They can be a bit deceiving because many companies realize how easy it is to get these recurring charges out of your pocket every month without you even realizing. Instead, go through your monthly subscriptions and remove any that you truly do not need or use. Hulu and Netflix are two subscriptions that can save you money especially if you are only using one.
Set Up Automatic Transfers to Your Savings Account
Automatic transfers each month from your checking to your savings account can be a real life saver—no pun intended! Setting up automatic transfers from account to account will allow you to save without having to do anything at all. Deciding on how much you want to transfer each month should depend on your monthly pay and a percentage you are wanting to save. After you’ve figured this out, you can sit back and let your accounts do all the work—and watch your savings grow right before your eyes.
Focus on Building Your Net Worth
Building your net worth goes hand-in-hand with paying off all debt and loans. Once you’ve paid off all debt, you begin to build your net worth. What does this have to do with saving you may ask? Well, when you save your money, you are contributing to the value of your net worth—your money and assets contribute to your overall net worth, so of course the more you save and have—the higher your net worth becomes.