The Guide to Saving for Millennials

Starting to manage your money can be easy once you point out the main factors that make it difficult for you to achieve your financial goals. Here are the top 5 reasons why you can’t save and realistic tips that you can easily do to get you closer to your goals:

The fear of missing out (FOMO) or being left behind is one of the reasons why your resources get depleted. Following what’s #trending from friends and online influencers can be expensive. It will make you buy items online more frequently not because you need to but because something new came out. This can result in increased usage of money you don’t have yet. If uncontrolled or managed well, this can easily snowball into long-term debt that can set you back a couple of years into adulthood.

Be on top of your finances and smart about your choices as early as now. Instead of putting all your effort and resources into looking good today for the ‘gram, why not start investing in small things that can increase value in the future?

Reallocate some of your money to simple investments like UITFs. This type of investment allows you to grow your money at a low starting amount and provides flexibility depending on the level of risk you are willing to take. You can choose a fund that is best suited for your needs and risk appetite.

It might take a bit of your time to list down your expenses and how much of your money goes to a specific expense item. However, you will not be able to control something that you don’t know or even remember. Staying on top of your finances means you can plan, allocate, and control the flow of your money to how it will best benefit you.

While it can be #StruggleIsReal, help yourself achieve your savings goal by creating and sticking to your budget. List down your income, your non-negotiable expenses, and other financial commitments. Allocate your income to the items listed so that you know how much room for spending you still have.

Tracking if you are sticking to your budget is important too. But, with your busy schedule, it will be difficult to manually do the math. Here’s where your digital banking transaction history is going to help. You can easily check the details of your digital transactions (when you made them and how much) by just opening your bank app.

Yes, updating your wardrobe and gadgets is important especially if it is needed in your current job. Before adding to cart new releases, make an audit of what you have currently and what you need. Knowing what you need will help you shop online without over adding to the cart. It will also save your space as you will know if there is a space for the new purchase in your room or closet or not.

Taking a step further by making sure you are investing in classic and timeless well-crafted pieces so you won’t need to buy multiple items frequently.

The struggle of saving lies also in the manner of how you save. Create a sustainable saving habit that would work for you without crippling your capacity to provide for your daily needs. You can take inspiration from the way others are saving but adjust it based on your abilities. You could use the envelope method, 52-week money challenge, and 12-month saving challenge, to name a few.

You may also consider having a separate savings account that will be dedicated to your savings. You can schedule a regular transfer to this account which is for your savings. This way, you can be consistent and you know your savings is safe and secure even from yourself.

Yes, that 12.12 sale is great because you’re scoring great deals at extremely cheaper prices but you need to ask yourself, “Do I need it? or do I just want it?”. Ignore the pressure to buy when you see the word SALE. Sale events are seasonal. You may not catch that 80% discount now but you can wait for the next one when you have more financial flexibility. To help you define if the item you are buying is a want or need try factoring in how many times you think you’ll use the product versus its cost.

Saving is difficult especially when you have multiple eCommerce apps on your mobile phone hitting you with sale announcements, new releases, and other notifications. Outsmart your shopping apps and keep a constant reality check of your finances.