Millennials have quite a bit of a reputation being bad savers. Compared to other generations, their spending habits tend to be focused on consuming and less on saving. Still, it doesn’t mean living a frugal lifestyle is something out of reach. Millennials can improve their financial health.
Living on a tight budget can pretty tricky, especially if you’re not prepared for it. It takes meticulous planning and a bit of creativity to be able to save every penny possible and live a frugal lifestyle.
If you are looking to improve your personal finance, here are a few simple budgeting tricks you need to try:
Fix broken appliance and electronics right away
You want your electrical appliances to work in good condition. Broken appliances are safety hazards, and you might easily injure yourself if you don’t fix them. Experienced electricians know that poorly maintained electrical circuits and devices can even lead to electrical fires, which can prove costly in the end. So it is better to fix them right away while your budget allows it than incur large hospital bills or renovation expenses later.
Cook at home more
Some millennials say eating out is one of the few luxuries. The truth is that you can still eat good food without breaking the bank. The key here is to plan your meals and cook more at home. You can quickly put a thousand bucks in savings just by choosing to cook your meals and skipping the occasional Starbucks. Just be sure not to go grocery shopping on an empty stomach, as you might end up putting everything into your cart.
Lose the credit card
Credit cards are helpful when it comes to improving your finances. But if you’re trying to save money, it can be too tempting to use them, which can further complicate your financial situation. So it’s better to keep them away unless you have to use them for essential purchases.
Automate your savings
It will be also easier to keep track of your savings and don’t go over budget when you set up an automatic savings plan. If your bank has this feature, try to save at least 10% of your income regularly. You don’t have to worry about not having enough money to save when you’ve already done it without you even knowing it.
Find a side gig
Lastly, if you want to save more, another way to help your budgeting is to boost your income streams. Good thing it’s easy now to get a side gig now. You can always look online for freelance portals and see what tasks you can work on. If you’re good at writing articles, it’d be good to look for content creation work.
Living on a tight budget means being selective and careful about your lifestyle choices. You might slip up a few times and go over your budget. That doesn’t mean you should stop. The important thing here is that you have started taking steps to improve your finances and get closer to your goals. In the end, when you retire, you’ll thank yourself for being financially smart.