- September 9, 2019
- Posted by: Karen
- Category: Bank fees, Finance & accounting, Financial goals, First Home Buyer, Innovation, Wealth
|You may be forgiven for thinking of the millennial generation as financially frivolous given all the headlines on ‘smashed avocado’ – spending money on café breakfasts. Contrary to popular belief, this generation can teach parents and older generations a few money savvy tips.
Follow these tips and the banks will love you:
If your finances just aren’t what they should be, follow these 7 money savvy tips BEFORE you plan to buy a home.
1. Reduce your reliance on credit cards
If you already have a (or some!) credit card(s)…
• STOP using your credit cards
Finally, if you can’t afford it, don’t buy it. Don’t be tempted back into bad credit usage habits.
2. Do your research before you spend
Put the brakes on your spending
• Is your purchase a want or a need?
3. Cut back on discretionary spending to save
For example, calculate just how much you could save if you cut back on one brunch and a few coffees a week.
Say you cut back on one $25 brunch and three coffees a week – that could save you approximately $2,080 a year. That’s the cost of a good holiday! There’s no reason you can’t afford a holiday, a new television or house furnishings.
4. Use new technology to manage your finances
There are other apps and online tools readily available such as Pocketbook and TrackMy Spend, that, once linked to your accounts, automatically total your spend by category. Some even have ‘safely spend’ limits and alerts. There is no excuse for not knowing where you money goes!
5. Own your money situation
Take the lead from this generation and make time in your life for your finances.
Drop some time in your diary each month to do a quick check of your account transactions, fees and charges. Make sure your debt is reducing and your savings/offset account is increasing because if it isn’t, then you are not getting ahead financially.
6. Create a side-hustle to accumulate additional wealth
A recent Aussie survey3 indicates that millennials are joining the FIRE moment – Financially Independent Retire Early – and creating side-hustles to accumulate wealth.
Do you have skills or interests that could earn you extra income?
7. Spend on experiences, not on ‘things’
Instead of impulse spending or online shopping, reward your improved money management techniques with an experience.
Some strategists quote 75% of millennials prefer to spend money on desirable experiences, education or a ‘shared’ good rather than on material possessions4.
Think like a millennial and focus on experiences rather than spending on material goods that will date, be replaced or depreciate over time…. instead spend on experiences you will remember for a lifetime.
Becoming ‘saving-and-finance’ savvy can take time and requires changing bad habits. We are here for you. Don’t be shy to touch base with us if you need financial help or your circumstances change.
Call (07) 5452 7979 or email me [email protected]