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Compared to previous generations, home uptake by Millennials is significantly low. Not that Millennials do not want to buy homes, rather, most of them cannot afford it. Many reasons have been given for this, chief among them being the challenging economic times and the high unemployment rate but inability to save has surfaced as an unprecedented reason. Simply put, Millennials are struggling to save enough to buy homes. Below are 15 tips that can assist Millennials save more.
Embrace entrepreneurship
Successful entrepreneurs have shone a light on the entrepreneurial path as a viable way of acquiring financial security. Accessible to all, it is not an easy path; but in it, Millennials get the opportunity to earn handsome amounts by offering humanity robust solutions to its problems. In such a manner, one can earn more than enough to buy a home and enjoy a dignified life.
Cut back on travel
Millennials are profoundly travel oriented. Experiences matter to them more than saving, and other ideals that generation X and Baby Boomers held dear. Given that traveling is expensive, cutting back can help increase saving margins. Holidaying in cheap destinations offers another alternative.
Avoid buying unnecessary items
It does not make sense to buy the latest fancy gadget that has minimal additional value in comparison to the one at hand. This, however, is a concept many Millennials understand, but do not adhere to. In this manner, they divert money that could have otherwise gone into their savings.
Prioritize
When one does not want to do something, excuses come naturally, and this is the case for many Millennials with home buying since purchasing a home is not high on their priority lists. With a priority restructuring that will return home buying to its rightful place, Millennials will find it easier to save.
Start a side hustle
The truth is that some jobs pay too little to allow for the saving of enough money to buy a home in one lifetime. In such a scenario, starting a side venture provides a good starting point to earn extra, and save more. Eventually, the hustle may even become a fully-fledged business.
Set goals
Without goals, there is no metric of measurement to determine success or failure, and the results are often mediocre. To save more as a Millennial, set realistic short-term goals that elevate motivation. It could be even $15 a week. Keep at it and achieving long-term saving goals becomes more probable.
Have a plan
Setting goals is not enough, concretize them by developing a savings plan. The trick lies in committing the program to someone one feels accountable to. It could be a mentor, a parent, a spouse, etc. This way, an individual generates a more prominent drive to save.
Work harder
The one thing that all rich people concur with is that to become wealthy, hard work is inevitable. Even in wealthy families, someone somewhere worked hard and sacrificed much to build wealth. If one can manage to work hard and practice financial shrewdness, much more than saving enough to buy a home is possible.
Save the bonuses
Hardworking and prospecting Millennials may enjoy the windfall of a bonus, winnings or tax cuts every once in a while. When fate smiles in this manner, do not make the mistake of blowing it all away like many people do. Instead, direct the funds into savings.
Shop slowly
When the urge to buy something presents itself, unless it is an emergency item, put off the actual buying for 24 hours. During this time, seek second opinions. By doing this, the chances of making an emotional purchase and ending up with something unneeded will reduce significantly. If after 24 hours the need to make the purchase persists, and there is assurance that it is not emotionally fueled, go on and make the purchase.
The treat-save principle
The treat-save principle is a tough principle, but one that is very effective nonetheless. When going out, or buying something fancy, match the amount used and put it into the savings account. If matching it 100% proves hard, do it in percentages such as thirty, sixty, etc., until
Calculate the man-hour cost
Calculate the man-hour price of items due for purchase to get a cost that is representative of the prevailing personal financial situation. For instance, if income is sourced from a $15 per hour job, equate a $19 cup of coffee and avocado toast with one and a quarter hours of work to get a deeper sense of the cost of the meal. Financial missteps will, then, be more unlikely.
Opt out of marketing subscriptions
Unless it is necessary, unsubscribe from marketing emails and subscriptions. Do not fan temptations. Looking to save when surrounded with marketing copy of admired things is like quitting drinking and then frequently spending time at the bar.
Capitalize on IDA programs
Investment Development Accounts are programs that match the amount saved for low-income persons. If one is available locally, do not hesitate to join. Most come with a financial education package and the requirement is usually to commit towards saving to get a house, get out of debt, etc.
Banking hacks
Avoid using non-affiliated bank ATM’s as the additional costs can amount to substantial sums. Make sure credit cards are paid in full monthly to enjoy their benefits and work hard to reduce any debts. Also, pay bills on time to avoid penalties and remember to keep track of annual personal credit scores.
Effective saving is a function of shrewd money management courtesy of a sound financial education. So, by all means, take advantage of tips such as these as well as other forms of financially informative material to fine-tune your money sense.