Every generation has specific spending habits, and millennials are no different. Generation Y is labeled as the biggest spender. Older generations believe that millennials are foolish and selfish. However, they don’t consider that Gen Yers probably won’t be able to buy a house or land a dream job that promises a financially secure retirement.
The entire generation of millennials is considered reckless, but the key problem is the system. Student loans, high rent prices, low salaries, and credit card debts force them to save more. Here’s how they do it.
Finding a Roommate
The cost of living in cities is high, but there are also more job opportunities. That’s why millennials decide to stay in bigger cities, rent fancy apartments, and live with a roommate or two. That’s how they pay the rent, split the utility bills, and save more without having to go back home. Roommates can also help with chores and other responsibilities, helping each other save more time and possibly land a side hustle.
Frugal living has become a huge trend among millennials. They keep their old cars, don’t go to Starbucks every day, take on DIY projects, and buy used items. Millennials keep their eyes open for discounts for both online and in-store shopping and use cashback apps as often as they can. Their frequency of coupon use has also increased over the last couple of years.
Getting a Side Gig
Getting another job is great for making extra income. Many millennials decide to work from home as freelancers. Working from home minimizes transportation costs, plus they get to save more on food. Those who can’t find an online job utilize many platforms to offer their services offline, such as dog walking or babysitting.
Investing If Possible
There are many ways to invest, and millennials were forced to become financially literate earlier than older generations. While some have faith in volatile markets, such as cryptocurrency, others decide to explore banks and interest rates. Millennials are also more financially active and aware of fees, portfolio balances, investment funds, and similar.
Eating out can be costly, so some millennials do what they can to bring homemade food to work. They are aware that cooking at home can save up to $830 per year. Some have become experts in meal planning, which helps them stay away from restaurants and takeouts.
Aside from using the cashback apps, millennials are great at automating their savings. Many apps on the market automate depositing into savings accounts or paying bills to help millennials stay on top of the money-saving game. Since mobile phones are always in their pockets, millennials use them to do various jobs to make more money, such as food delivery or competitive gaming.
Taking up Challenges
Social media has a significant influence on how millennials live their lives, and the latest money-saving challenge helps many succeed. People buy 100 envelopes and write the amounts on them from $1 to $100. They also make a list to track weeks, 1–50. Two envelopes are selected for each week, and people put in the amount written on the envelope. Some have managed to save up to $5,000.
Generation Y has many financial challenges to tackle, and chances are many won’t get to live the American dream. However, millennials are tech-savvy, which helps them save more. The internet is filled with success stories and advice on saving money while living a fulfilled life. Getting a roommate, cooking at home, and getting a side gig are only some of the proven money-saving methods that millennials use.