The millennial generation may be set to inherit $30 billion from their parents, but they are the thriftiest generation ever. Research shows that they are 15 per cent more likely to stick to a budget than their parents. With a fierce competition for jobs and sky- rocketing prices, it pays to spend wisely. Here are some tips to help the average millennial get the most out of his money:
Don’t believe the hype
Millennials are criticized for not being as brand-loyal as previous generations, but that’s mostly due to an inbuilt cynicism regarding marketing and advertising. As a millennial, this is your best weapon when it comes to getting value for your money. Getting the right information on products online can help you to decide what, where and when to buy.
The internet is a great source of authentic reviews on various products, and modern businesses already know that you won’t be blinded by the hype. They are learning to make high-quality products that enhance their reputation rather than relying on advertising.
Get the best deal on rented property
While generation Y might find it difficult to buy property, there’s no reason to put up with overpriced homes and condos in the market. Before moving out of your parent’s home, make sure your new space isn’t going to drain your bank account. Aim to spend no more than 30 per cent of your income on rent, and try to get as many utilities as possible thrown in for the price.
Try to flat-share with friends to reduce the financial burden, and be prepared to work as a team to get the best deal. There is a great selection of condo for rent on Zipmatch, so finding the ideal home can be easy and fast.
Multiplying your money is hard work, but it can be done with a strong willpower and knowledge about financial investments. Divert as much of your spare income into investments as possible, and treat pay rises as an opportunity to save more. It’s never too early to invest in a pension, such as company pension schemes that will help to boost your retirement savings.
Manage credit wisely
Access to credit can be a temptation. However, card companies know this, and the interest rates on a large debt can be a huge burden. Credit cards can be a great way to delay payment until funds are available, but it’s important to pay them off in full as soon as the bill is due.
Use technology to track spending
Millennials have mastered technology, and banking and financial apps can help you keep track of income versus outgoings. Apps which link your bank account and credit cards to a set budget help you make sure you don’t accrue debts and that you have money to save for the future.
Getting into the habit of budgeting is a valuable life skill that ensures you’ll never have to worry about money for emergencies and your future. This is fast becoming the defining attribute of the millennial generation.