From steering clear of fast fashion to clever banking, take a look at these ways millennials can save cash.
With bills and house prices on the rise, it’s no wonder millennials are struggling to build a decent savings pot. Add that to the growing need to be enjoying all of new brunch hot-spots and following the latest trends, and our wallets have emptied before we know it.
Paying for rent, utilities, cars, food and nights out is leaving many with little money to their names to put aside for a house or rainy day fund. But there is hope!
Here are several things millennials can do to help put money away to save for the future.
Avoid fast fashion
Defined as cheap, trend-driven clothing, fast fashion can be found in high street stores across the UK, changing at an astonishing rate. If you regularly top up your wardrobe with these short-life items, you’ve spent £100+ a month before you know it on one-off clothes.
Learning to avoid fast fashion is one of the key steps to saving some extra money. Instead of buying that £20 must-have top, why not stick that money into a separate savings account?
Work out how much you spend on these items per month and set up a standing order to go out of your bank on payday and straight into your savings account.
Learn how to say “no”
Ah, the dreaded “no”. The fear of missing out can be tough, especially as being social and heading out on brunch dates are such a big parts of millennial life.
Say brunch costs you £15 on average; and if you say yes to your friends once a week throughout the month; then that’s £60 a month you could be putting away into your rainy day fund.
We’re not saying you should never go out with your friends – after all, being sociable and eating out is good for our mental health – but by saying no a couple of times per month, or recommending a cheaper alternative, you can start saving more money.
Go Robin Hood on your finances
We’re not suggesting you don your best tights, tunic and hood for this one; it’s more about adopting the idea of taking from the rich and giving to the poor. In this scenario, the bank account where your salary or money comes into is the “rich” and your savings account is the “poor”.
Set up a standing order with your current account to send around 10-20% of your salary into your savings account on the last working day of the month. That way as soon as you get paid, your savings come out, meaning you never really see the money or are tempted to spend it.
Take the average millennial salary of around £25,000. If you put away just 10% of your take home salary each month, after a year you'll have saved around £2,040! Up that to 20% and you’ll save around £4,080 a year. If your ultimate goal is to save for a deposit for your first home or an expensive holiday, this could be a great way to start getting that money together.
Use credit cards to save money
Credit cards can be a good way to pay for those bigger items. Wanting to purchase a high-ticket item like a piece of furniture or a car? Research the market for the best 0% interest credit cards out there, which will allow you to break up the payments over multiple monthly instalments, without having to pay a large chunk of interest on top.
As a millennial, it can often feel like the deck is stacked against you. With high rents, tight salaries and a social life to juggle, saving can often seem like an impossible task. But by making small changes to your day-to-day spending, you can start to save some money away for your future.
Disclaimer: All information and links are correct at the time of publishing.