Top 3 Ways for Millennials to Save Money

Do you often wonder how much you should save monthly? Depending on your future planning, I would say. Are you planning to buy a house? Or start a business? Think and plan your future carefully before you make big spending on things you think you need. Millennials are often lured by wanting new best things that cause them to spend more than they should. YOLO lifestyle or mindset is the main contributor to impulse buying. 

Here are some tips we curated carefully to help you manage your finance:

  1. Formulate a saving plan
    • Most of the financial experts agreed that youths should follow the well-used 50-30-20 rule popularised by US senator Elizabeth Warren. 50% on essentials, 30% on discretionary spending, and 20% on savings or investments. Know how much you make, know how much you owe. When you compare the two, you should be able to know how much you should spend.
  2. Make some changes in lifestyle
    • Skip the expensive coffee. You should invest in a decent coffee pot or coffee maker if you are a caffeine addict. We get it, there is something about that green and white cup…. But you could save up to IDR18million a year. We are not saying you should entirely stop drinking coffee. There is something called ‘guilty pleasure’ that allows you to get it once a week, maybe? 
  3. Cut discretionary expenses
    • Differentiate between needs and wants. What you think you need might be just what you want. Rethink before you make any big purchase. If you find yourself wanting a new phone, analyze whether your current phone can’t do what the new one can. Do you really need a new phone? Or you just want a new phone?

When you decide it is time to cut back on your expenses, you could find ways to save some money such as bringing your own lunch box instead of always eating out. Besides, it is way healthier when you make your own lunch instead of buying from elsewhere. Less oily, less salt, fewer calories? 

With the right approach and mindset, you could be making significant changes in your finance. Even a small start can make a big difference.