As Millennials are reaching adulthood, more companies shift their focus from the future to the here and now. People born in the 1980s and 1990s have been the beacon of hope for the future of brands. Millennials’ poor spending habits on top of massive student loans have shaped a lot of trends in society including putting off marriages and having children or buying a house. There are a few other trendy findings among marketers and market researchers about you if you are a Millennial.
1. You eat out most of the time. According to statistics, at one point in March, American consumer spending on dining out surpassed grocery store sales for the first time.
2. You act on impulse. Whether it is a reward after a long work week or a chase after a pleasant rush from online shopping, the majority of Millennials tend to hold the belief that their income level determines their success.
3. You spend before you save. Wall Street Journal reported that Millennials had a negative savings rate in 2014.
4. You don’t have any cash for emergencies. Living paycheck to paycheck spells trouble. It’s time to consider shrinking disposable income section of your budget.
By evaluating your spending habits, you may get inspired to change a few things. Here are a few quick tips to get you started:
1. Spend mindfully and analyze your situation
In other words, make sure your spending aligns with what is most important to you. Weighting your self-worth against others based on the social media accounts is a very destructive thought pattern. Instead of trying to follow yet unaffordable for you lifestyle choices or purchases, decide what is it you want and set reasonable expectations and goals.
2. Automate with a tracking app
Automate the monitoring process of your spending habits. An important first step towards saving, is knowing what your major expenditures fall on. Apps like Mint, Acorns, Digit, to name a few, monitor your spending, transfer money to savings account, invest in your portfolio, and create tailor-made budgets.
3. Set personal goals.
There is nothing more rewarding than reaching any type of your goals regardless of whether they are financial, career, or personal.
4. Pay yourself first to save
Budget your disposable income after you put away 10%-20% off your paycheck. There are numerous ways to cut your spending: inquire about low-interest rate on your debt, skip the Stabucks, take public transportation just to name a few.
5. Pick the lifestyle right for you.
It simply means enjoy life experiences without feeling pressured that you have to keep up with someone and over-extend yourself chasing what you don’t need.