Millennials are commonly seen as casual, carefree, and confident young professionals that are willing to try close to anything in their effort to learn the ropes of adulthood. Some of them find their way on their own. But because of the lack of disciplined, well-thought out, and professional planning characteristic of the previous generation, millennials often struggle to manage what they have. This is widely apparent in their money habits which usually fall short of expectations. If you’re a millennial that’s flustered with how to handle finances, these 5 bright practices should help you breathe new life into your bank account.
- Get Smart with Bank Accounts – You probably have a savings account in your trusted bank earning a simple interest of around 1.5 – 2% every year. The interest you earn is computed based on the balance you have in your account. For instance, an account holding 1,000 Ringgit will earn 20 Ringgit in one year at an interest rate of 2%. For some, that might be an added bonus, but there are ways you can boost that interest for greater gains. Opting instead for an account that requires a fixed deposit with high interest rate will earn you more in the long run. Often, these accounts can earn 5 – 7% per annum, triple of that offered by other accounts.
- Retrace Your Subscriptions – Millennials often subscribe to over a handful of services just because they’re all part of a trend. Retrace what you subscribe to and see if you’re actually maximizing what you’re paying for. Toss out the gym membership and go for DIY workouts instead, have your cable cut-off if you don’t watch TV too often, and consider lowering your internet subscription if you don’t need high speed.
- Skip the Coffee Run – Coffee trends have changed throughout the years. Back in the day, it was a genuine pick-me-up consumed by the working class to boost office performance. These days, it’s treated more like a privilege, with different establishments taking advantage of consumer trends by offering fancy concoctions that are priced close to three times their actual value. Unless you really need that cup of coffee, try ditching the habit or brew your own at home.
- Don’t Be Swayed by Branding – More than any other generation, millennials seem to designate the greatest value on brands. Don’t let yourself be swayed or lured by trendy marketing strategies. Look for other shopping options and keep an open mind about lesser known consumer products manufacturers.
- Cut Back on Data – Millennials have an incessant need to stay connected, and sometimes, it becomes more of a distraction than an actual need. Avoid maxing out your phone bill by cutting back on your use of internet data. Connect only when there’s available WiFi or switch to a prepaid account instead. If you really need to access the internet while you’re out, consider registering a portion of your balance for a short internet plan.
Consumer trends have changed, and market driven behaviors are fueling overspending. There are better ways to spend your salary, so don’t let the trends dictate your future. Avoid losing a hold of your finances and encourage your bank accounts to grow. Be a smart money-saving millennial by practicing these 6 bright tactics.