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Many commentators believe that millennials comprise the generation of self-absorbed, lazy, and luxury goods fanatic people. Such generation is the least likely to save as they love to splurge on things and even foods that are deemed popular and on trend. However, new research says otherwise.
Studies suggest that millennials have their fair share of financial woes like higher student loan debts, lower assets, and lower wages compared to the older generations. These are the very same reasons why they are extra careful in managing what they have, especially finances.
Millennials save as much as they can. They seek value with their purchases, invest with caution, and shy away from debts. There’s more to them than their“ The Me Me Me Generation” label suggests.
There could also be important financial lessons you can get from them such as the following.
Make the Most Out of Your Money
The study conducted by the Federal Reserve in 2018 reveals that millennials actually have lesser spending habits compared to baby boomers (born between the years 1946 and 1964).
It owes to the fact that this generation is younger and is earning less compared to their predecessors. As a consequence, they’re pushed to suppress their spending habits and make the most out of the money they have.
That said, millennials become conscious of every money they spend. It is evident on both small scale and large scale financial reports under categories where these consumers look for the best value with every individual purchase and focus their spending.
Invest More on Experiences
If there’s one big difference between older generations and millennials, it’s that the latter prefers to spend money on experiences rather than material things.
In a poll conducted a few years ago, 82% of millennials revealed they would rather spend their money on experiences such as travelling, attending parties, festivals, cultural performances, sporting events, concerts, and the likes.
It’s a smart choice, according to economists, as spending money on experiences provides more satisfaction than buying stuff. If you’re someone who treats experiences as more important than possessions, you can finance it by downsizing.
For example, you can save on housing costs by moving into a smaller home. You can also reduce your expenses on shoes, clothes, and other items. Be smart also when it comes to loans. Weigh your options carefully through asking for advice and inquiring through Credit Ninja Loans and other credible lending platforms online.
Further, allocate your spending appropriately.
Use Technology to Manage Your Finances Better
When it comes to tinkering with technology and being tech-savvy, millennials almost always defeat baby boomers.
You can now even ask help to your grandchildren with your cell phone, laptop, tablet and other devices. It goes to show that now is the best time to engage with technology and use it to your advantage.
For example, there are available mobile apps that you can download to help you track and budget your spending in real time. It will help you stay on the right track so you don’t exhaust your assets.
Be Resourceful in Looking for Supplementary Source of Income
Technology has entirely revolutionized the way people earn as well as the economy. Millennials now shun the traditional ways of establishing a stable career with only one employer. Instead, this generation goes for alternatives and unconventional approaches like nontraditional income opportunities and entrepreneurship.
For instance, you can rent out spare bedrooms in your home by travel websites. You can earn extra by driving for a ride-hailing company. You can offer online consulting and coaching or teach lessons.
The key here is to embrace a millennial mindset. Think and search for ways to earn extra income without compromising your lifestyle.
Don’t be Brand Conscious
Another notable difference between those of earlier generations and millennials spending habits is that millennials are far less brand loyal.
In a study conducted by Cadent Consulting Group in 2017, the majority of millennials don’t have a real preference between private-label products and brand names compared to baby boomers. Cadent recognize it as one of the major factors on the growing popularity of many store brands since 2005.
Focusing only on what’s inside the package and not paying attention to the brand label helps millennials get more value for their shopping money. This is also supported by the fact that store brands in supermarkets cost 25% less compared to branded names according to Consumer Reports. And, in most cases, the quality of both are equally good.
The relationship of millennials with technology and just about anything futuristic and trendy has given them different perspectives on things, finances included.
These people grew up with internet access, cell phones, and other technological advancements that older generations couldn’t understand right away. Moreover, they know very well how to use technology to their advantage and look for better opportunities that older generations didn’t even know existed or are possible. Take your cue from the given examples above.
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