5 Smart Ways on How Millennials Should Save Their Money 

If there is one thing millennials don’t talk about often, it is about how to use and save their money. As a generation that was born and raised in an essentially middle-class India, millennials were the first to become the ‘global’ citizens when Indian economy welcomed the Foreign Direct Investment (FDI) and foreign brands into the Indian markets.

Add to that the rise of the Internet.

 

“With the advent of the Internet and, with it the vast world of choices, brought with it the high aspirations and the need to live a life worth mentioning. Today, money for millennials means more spending power to experience and create memories that will live eternally on their social media posts and back-ups in laptops and google photos. Unlike their parents, who aspired for stable, well-paying jobs and careers, a family, a home, a car, and a decent retirement, millennials today aim for much more. They want a vacation in Europe, experience the latest gadgets with modern technology, have a social life, and engage in hobbies and social welfare activities,” says Vipul Agarwal, Start-up mentor, Serial investor, and Consultant.

 

As a generation focused on experiences rather than ownership, unfortunately, ‘saving’ money has been one of the biggest challenges. “While their capacity to earn money has dramatically increased, compared to their parents, their ability to ‘save’ money seems to have ironically disappeared. It is not a coincidence that this is also a generation that lives on ‘credit’ and struggles to meet individual expenses, surviving from pay-check to pay-check,” he adds.

 

While most millennials, who are now approaching their 30’s and 40’s, are waking up to the harsh reality of ‘life of credit’, they are seeking means to save while not losing out on their dreams and aspirations. As a start-up mentor and a serial entrepreneur, Vipul recommends these 5 smart ways to save more money:

1.       Analyse, De-clutter and Stop Leakage: Taking a step back to analyse is always beneficial. Even as we approach a new financial year, it helps to go back to bank statements, check out the past one year of expenses and earnings, and take stock of your financial health. Ledger statements can help understand the areas where one spent the most, the total savings you were able to make, your current credit profile, tax slabs and if you are eligible for rebate etc., all of which is important to ensure there is no ‘leakage’. De-cluttering the ledger and re-designing your financial vision, can be an impactful way to start saving.   

 

2.       Fulfil Goals with Auto-debit: One of the best ways to save money is to leverage the ‘auto-debit’ feature of banks. Creating a ‘goal’ account, like Euro Trip or ‘House’ or ‘Car’, and ensuring that a set amount is auto-debited every month from the paycheck will ensure the consistency of ‘saving’ money every month. Additionally, since it is auto-debit, it will be regardless of your motivation, memory or will.

 

3.        Sharing is Saving: With several smart options to lead a comfortable life, it is easier to enjoy common experiences while saving money. Opting for a pool cab instead of an individual one, for example, helps save money while giving an opportunity to connect and make friends. Sharing Netflix accounts or pooling in with housemates to buy groceries in bulk, can help save costs while ensuring you don’t compromise on living standards. In the era of co-working and co-living, it is easier to share resources while enjoying a comfortable lifestyle and saving money.  

 

4.       Leverage E-Commerce: One of the largest disruptions in retail is the advent of eCommerce. While some claim it to be a temptation, it can become a boon for millennial looking to own the latest trends. With amazing discounts, cashback offers, coupons and complimentary vouchers on brand collaborations, one can shop smart and save money!

 

5.       Get Insured: Healthcare can be one of the most devastating and helpless expense and most young people choose to ignore or oversee the damage it can make to their hard-earned savings. Apart from health, even loss of possessions, from car’s and bikes to homes and businesses, can all be extremely expensive and drain the monetary resources. Insurance is a smart move for anyone willing to not just save money but to also safeguard themselves against potential loss. With multiple short and long term plans and flexible premium rates, insurance can also be a great investment opportunity.