The world is changing right before our eyes- and no one has seen quicker change than the millennial generation. Just ten years ago, cell phones were a luxury that were used only to talk and text- today, our phones are mini-computers that are attached at our hips. Freedom Debt Relief has found that the rules of money and saving are changing- and with these new rules comes new opportunities.
Many millennials dream of traveling abroad and seeing new places. Unfortunately, many also find it difficult to choose between heading out on their international adventure and saving for their first home. In the past, this might have been true- but Freedom Debt Relief has found that as the world becomes more and more interconnected, it’s never been easier to have it all. It does take a bit of planning and money management, but Freedom Debt Relief has found the best millennial finance tips that will help them explore their world- while also saving for a home. Consider applying some of these saving strategies to your life!
Analyze where to cut. The first step to any saving plan should be to analyze your spending and take notice of where you can afford to cut back. Open up all of your bank statements, paychecks, and credit card transactions from the last few months and search for patterns in your spending that can be reduced. For example, if you’re prone to shopping online twice a month, cutting back to one new dress or pair of sneakers has the potential to save you $50 a month- that money can go towards your travel fund if you choose to head to a thrift store to shop instead.
Curb your impulses. Freedom Debt Relief has found that one of the biggest money-wasters that millennials love to splurge on is the impulse purchase. Items like fast fashion, take-out, and ridesharing services in lieu of public transportation for a night out may seem harmless at first, but they can do serious damage to anyone’s finances when added all together over the course of a year. Whenever you have an impulse to spend on something you don’t need, try using the 72 hour rule; wait 72 hours from after you’ve seen the thing you’d like to purchase and assess whether or not you still want it. You may be surprised by how many things you felt like you absolutely needed feel very “meh” after three days.
Have realistic expectations. Saving for a home is difficult- it can also be difficult to save money for travel at the same time, especially if you have unrealistic expectations for your destination. Millennials can get abroad, but they may have to take some comfort cuts if they are also saving for a home at the same time as their trip. For example, instead of staying in hotels, many millennial travelers choose to bunk in hostels, which split a room between a large group of foreign travelers and are usually much less expensive when compared to hotels. Many millennials also choose to forgo flight luxuries like extra baggage, instead choosing to pack light and fly on budget airlines. Making small sacrifices in your trip expectations is an excellent way to continue saving for your mortgage while enjoying your destination to the fullest. Less expensive international options also usually have the benefit of being more authentic as well!
Freedom Debt Relief wants millennials to know that it is possible to have it all- but it will take some work and a few sacrifices. The bottom line? Consider what’s more important to you- if you really want to achieve your major goals like owning a home and an international vacation, you’ll have to make changes to your lifestyle and live under-budget for a while. However, the payout in the end is the feeling of satisfaction that comes along with knowing that you’ve beaten the odds.