Essential Saving Tips for Millennials
We present 5 saving and investment tips for millennials to take on board.
Saving money every month is the first step towards financial independence in the future. But not many of us are able to practice it diligently and stay on course every month.
Consider the following simple savings and investment tips that every millennial must take on board:
* Open a savings account.
You have a job with a steady income, but how are you using your money? Apart from using your salary to eat out, travel and enjoy your life, we recommend that you set a part of it aside as savings. Building a savings fund becomes easy when you have a bank account, so do open one pronto. Also, here’s a savings tip for the future: save money every single month, and not sporadically. That way, you will have a sizeable savings fund for future use.
* Assign a spending budget – and stick to it.
Here’s another good savings tip: spend less. The less you spend, the more money you can save. We urge you to set a limit on your spending every month. For example, budgeting for work commute, eating out, socialising, etc. you might need Rs 25,000 per month. Do not overstep this limit, whatever the circumstances. In fact, let’s make it easier: keep Rs 25,000 in your checking account and divert the rest to your savings account.
* Make the right investments for both the short- and long-term.
Your income must work for you overtime, and the best way to make this happen is to make the right investments. Talk to an experienced financial advisor about your future goals, and let them assist you in charting out a suitable plan for the future. Your investments portfolio must comprise a mix of mutual funds, realty, gold ETFs and even fixed deposits. Here’s a good investment tip to consider: have a mix of asset classes with varying maturities, so that you have money on hand for both short- and long-term needs.
* Stay away from credit cards; use a debit card instead.
It is very easy to get sucked into credit card debt. It starts with one credit card that you overuse, then you take a second one to pay off the first one. Finally, you are left with a lot of credit cards and multiple debts. Instead of a credit card, use a debit card for your purchases and transactions: it puts an automatic limit on how much spend, since it is linked to your bank account and can only spend as much money as is there in the account.
* Shop online and use payment apps.
Here’s another good saving tip: shop online and use UPI apps to transact whenever possible. Online shopping offers many cashback rewards and discounts, while UPI apps offer cashback on everything from bill payment to online shopping.