The Problem with Millennials Saving Money
I’ve been working for more than 10 years now and if there is one thing I’ve learned about saving money, it is that it’s never easy at first. Sure, after you get hired for your first job, you tend to buy stuff with the money you have earned. There is nothing wrong with that. But it starts being a problem when spending becomes a habit.
Most millennials have a hard time saving money because of the lifestyle they lead. Here are 3 reasons why they usually fail.
- The wrong mindset of how to budget their money
I actually learned this the hard way when I was struggling with how to budget my salary. Most people still think that when they get their salary, they need to pay their bills first then buy in some groceries etc., perhaps pay for some entertainment. Then what is left of their salary would be their savings. It should be the other way around. Start by paying into your savings first.
- Buying stuff they want, but not what they need
I’m sure a lot of us are guilty of this. This happens usually when you see a product that is on SALE. You think you must buy this new item because it’s half the original price! But the question is...do you really need it?
- Buying things that are way over your budget
You know you can buy that new car since you are eligible for a car loan. Or you can buy new gadgets and fashion items because you have your credit card with you. However, does it fit your budget? Or worse yet, are you spending beyond your salary?
Millennials are so focused on the things that they think they should have now rather than focusing on their future and saving money for it. They don’t seem to realise that by putting money into savings now, they will be able to buy the things that they are going to need in the future. They actually feel like buying things now is what they need to do in order to be successful in life.
Well I’m going to tell you that if you want to be successful in life, you have to start saving money the right way. Pay yourself first. I won’t lie, It’s going to be hard. Just like other things that you will do for the first time. Difficult initially, but once you get used to it, and make it a habit, it will be easy. Especially when you know you are doing this for your future.
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