How to Be a Millenniannaire
Many millennials are tired of hearing how bad they are at saving, or speculation over whether they’ll ever be able to afford a home. Recently, studies have found millennials are more likely to consider moving abroad for work opportunities, save for travelling experiences or just enjoy life with what they can afford than save for their futures.
As the UK experiences a widening generational wealth gap, research from credit comparison experts TotallyMoney, uncovers how much different generations are spending or overspending - along with some tips so you can save for that three month trip to Thailand in no time.
61% of millennials feel like they overspend on entertainment - including nights out and trips to the cinema.
Where Do Millennials Overspend?
While the average Brit puts away £183.50 into savings each month, the research revealed millennials (born between 1977 and 1995) save less at around £176 a month. Millennials are also the most likely to run out of money before payday - with 24% saying this is the case, and the majority of these blaming it on their expensive spending habits rather than an overall lack of funds.
The survey also revealed 61% of millennials feel like they overspend on entertainment - including nights out and trips to the cinema, with a further 34% believing they spend too much on eating out.
Tips and Tricks:
We’re pretty sure you’ve thought of ways to save money - but here are a few others just in case you haven’t thought about it, or that final reminder to get you started:
Student Discount and Perks
Some millennials can benefit from discounts in various shops and restaurants with a valid student ID. A few student bank accounts offer free railcards or interest-free credit cards, as well as a number of other incentives when you sign up.
Calculate your expenses
Whether it’s an app, a diary or scrap piece of paper - tracking your incoming and outgoings can really help identify where you spend unnecessarily. Try logging your main costs down and avoid impulse buys.
Lowering the Value
You might be used to brand names, but simple changes such as value brands can help save the pennies! Shopping in local butchers or greengrocers can help minimise the costs too - or swap your Sainsbury’s shop for an Aldi or Lidl.
Haggle your utility bill
Us Brits are notorious for avoiding the hassle of change, but research has found speaking to your provider may enable you to find cheaper plans or deals to cut down on your bill. We’d recommend researching other offers online in case making a switch would work better for you.
In a world where we can get anything at a touch of a button, overspending on food, transport, and online shopping has been the bane of our bank accounts. Monitor your spending, and if it makes it any easier - delete the apps from your phone if it makes it you think twice.
Going on holiday doesn’t have to be expensive, with new travel sites such as Kayak, Momondo, and Skyscanner - there are deals for all destinations you’ve been dying to tick off your bucket list.
Stop buying lunch
We’re all guilty of this - Pret sandwiches, Costa coffees and sushi bowls from Wasabi - if you’re not careful you could spend around £10 a day on lunch, which could add up to a whopping £200 a month.
According to studies, there’s around £37 million unused in gym memberships each year, and for many of us we sign up each year and forget to cancel them once the novelty has worn off. If you want to lose the pounds of your waist, but keep them in your pocket, sign up for a pay as you go contract or keep fit by jogging or running in your local park.
Henry Keegan from TotallyMoney commented: “Property is certainly more expensive than ever, and interest rates are notably low at the moment – both of which make it hard for younger people to be as well off as their parents or grandparents
“But there is a noticeable trend that younger people might not be acting with a clear view towards saving for the future. Whether it’s higher spending on unnecessary purchases or an approach to spending which means that they run out of money when they need it, their spending habits may not always be in their best interests.
“We encourage everyone to do research, keep a budget, and use helpful tools to ensure they’re making smart financial decisions.”