Sure, your parents will have told you enough times, “it’s important to begin saving once you are young”, especially if you want to own property or car some day. However, rising rent and living costs, plus a freeze in wages, is making it increasingly difficult for millennials to even live in the now, rather than start planning for the future. Ok, we aren’t making excuses for your latest credit card bill, but it can be difficult balancing a hectic social life with setting up a long-term savings account. So, if you want to keep your folks pleased, but still want to keep up with your friends, then you need to make sure that you manage your money incredibly carefully.
Firstly, it’s important to set some boundaries, as boring as that sounds! By setting up your weekly expenditure, right from payday, you can make sure that you stick to your goals – and even have a few dollars to spare if you are lucky. You could draw up a spreadsheet on your laptop or install a handy tool, such as financial planning apps for millennials on your cell phone, to make sure that you stay on track rather than splurge on that second coffee out. Once you’ve budgeted for your main outgoings, you can be sure to cut yourself some slack so that you can enjoy a few daily treats to make your saving that little bit easier to manage.
Cash over card
Ok, it might seem old school, but it’s essential that you leave those cards out of sight or at home if you want to nail your saving attempts. If you usually use your credit or debit card to pay for those little things, then you may be shocked when your monthly bill arrives, in particular, if you keep spending on a daily basis. Little treats such as lunch out, a bottle of water, your morning coffee or a muffin soon add up, so be sure to choose cash over card if you want to keep tabs on just how many dollars you have left in your wallet. Once you’ve switched to cash, you can start to begin to be more realistic about whether or not you really need your morning caffeine fix or not.
Cut back
Once you’ve identified which areas of your life cost you the most money then its time to start cutting back. If you love eating out, but just can’t afford it, then limit it to your monthly date night treat. If you are a serious coffee fan, then make sure that you only buy a Starbucks on your way to work once a week, rather than spending five dollars on a daily basis. Start cycling to work rather than getting the bus or train. If you love going to watch the latest movies at the cinema, then consider investing in a Netflix subscription and get cozy with your couch if you want to save some serious dollar. There’s no reason why you have to suffer when cutting back – you can still enjoy your favorite activities, but just consider how you can make the most of it on a shoestring.
Learn how to say no
One of the most difficult parts of adulthood is learning how to say ‘no’. Yes, really. It can be difficult learning how to turn down offers that will benefit your social life – but believe it or not; if you can’t afford it, then it’s totally worth it. First, and foremost, establish if your friends will actually disown you, or not if you can’t make a particular event or party – the chances are that they won’t. Next, learn how to say ‘no’ graciously, rather than coming up with an excuse or sulking. Explain to your friends that you are trying to save rather than spend, and be honest about your current situation. If they are true friends, then they will understand and respect your decisions, rather than making you buy a round of shots at the bar.
Cook it yourself
Do you spend hundreds of dollars on eating out? Do you have a cupboard full of spices, or a bookshelf full of cookery books that you have never even used? Then its time to make a change and start cooking and entertaining in your own humble abode. Chances are, you will enjoy it even more! If your friends aren’t keen, then don’t worry, you could try making the event much more fun by giving it a theme or getting everyone attending to bring a dish. After all, it’s important that you make it fun! Next, crack out the cookery books and get experimenting and cooking! Enjoy spending time in your kitchen and make sure that you get your partner or roommates involved too. Finally, the fun can begin! Get your friends round, put the wine in the fridge and enjoy spending time with your favorite people over a glass of wine and some delicious food. You will all enjoy yourselves a lot more in a more relaxed environment, rather than spending a small fortune in an expensive restaurant or club.
Enjoy your saving journey
You’ve started making a change for the better, so be sure that you enjoy it rather than feel like it’s a chore! Keep your long-term goals in mind and be sure that you always keep them at the forefront of your mind. Firstly, leave your cards at home and embrace using cash for your daily or weekly expenditure. Be sure to cut back on those little luxuries that you don’t actually need and you will notice a difference. Make sure that you learn how to say ‘no’ gracefully if you want to keep an eye on your credit card bills. Finally, bring the fun to you and start experimenting by hosting your own meals or nights in. Saving shouldn’t be a chore, so be sure to enjoy your saving journey – you will be closer to your goal in no time!
