Millennials are always on the receiving end of financial advice. Be it tax-loss harvesting or saving up from the earnings, dealing with money is not in the wheelhouse of every millennial. But they are doing quite well in their shoes with some nice habits. Millennials are much more educated than previous generations and have been living in cities. Also, they are making much less money on average. Combining that with a higher cost of living, it is not surprising to find that a lot of millennials are still trying to grab the foothold. Let us check how mutual fund SIP and some other habits have helped the ones on top.
- Sharing rooms or shifting to cheaper neighbourhoods – It is never a good idea to get a nice apartment or rent a nice space. A lot of money goes on rent or food while staying in a city. It would be a better idea to move in with friends or a cool roommate. Also, you need to make sure that you are spending a lot on a daily commute. Try finding a pool or public transport that costs less. At the end of the month, the financial savings would be quite a lot. Also, you can use the savings to start a SIP online.
- Getting a low-interest credit card – It can be a good idea to get a credit card that charges low interest. Credit cards are valuable tools and can help you build credit. It also helps you to practice useful money management skills. Many credit cards offer rewards that can be redeemed for travel or cash back. For your first credit card, you need to get one where you are not charged a lot of interest. The perks would not be worth it if you need your credit card only during emergencies.
- Starting a SIP –One of the ways millennials are saving today is by starting a mutual fund SIP. SIPs help to create financial discipline by creating the habit of regular investments. They are much like recurring deposits, but you would be investing in mutual funds. The money is debited from the bank accounts at regular intervals – weekly, monthly or quarterly. SIPs do not require you to time the market. They take away the hassle of considering when to invest due to the rupee-cost averaging. It would be a great idea to start a SIP online.
- Do not opt to eat out – You would be saving a lot on your meals if you do not tend to eat out. You might not feel like going for grocery shopping after a tiring day at work. But it could save you thousands every year. So, the next time you feel like eating out and saving yourself the trouble, you might consider it again.
- Try making a budget – Though this method might sound very conventional, you can start planning your finances. The least you can do is note down your expenditure. In this way, you would find out the places where you might be shelling out too much. It might be so that you have spent quite a few bucks on your addiction to hot beverages or evening snacks.
These are some of the habits taken up by millennials to save money these days.