Saving money is easier said than done, particularly for today’s cash-strapped Generation Z. As the youngest generation gets older and wiser, they’re discovering that saving money is one of the biggest challenges that they’ve yet to face. This is particularly true for those working on starting salaries. Once you’ve paid for all of your essentials, like internet lines, cable, groceries, and more, the chances are that your paycheck is left looking pretty malnourished.
The good news is that even youngsters just making their way into the world of work for the first time can save some much-needed cash with the right approach. We’ve got a few simple money management tips for Generation Z to share today. Check them out for easy ways to strengthen your saving strategy in the years ahead.
1. Know Exactly What you’re Dealing With
When you start earning money for the first time, it’s essential to get into a habit of figuring out exactly how much you have to spend. Although you might not have a huge number of bills to deal with straight away – particularly if you’re still living at home, practicing using a budget early will help you out a great deal in the long term.
There is a wide range of ways that you can keep track of your spending, from using a smartphone app to making the most of an excel spreadsheet. You can even use an old notepad and a pen if that’s what works best for you. Find out how much money you have coming in each month, and how much you have going out, then track every penny.
2. Say Yes to Less
Millennials and Gen Z are two generations that are often plagued by the concept of FOMO. In other words, they’re afraid of missing out on the things that they say no to. However, you can’t necessarily afford to agree to every gig or night out that your friends invite you to. Instead, you need to get into a habit of figuring out what you really want to say yes to, and what you can let slide.
Think carefully about how often you can realistically say “yes” in a month and remember to put money aside in your budget for those things that you most want to do. While you’re taking steps to avoid being overwhelmed by FOMO, don’t forget to pay attention to other things that could be triggers to your spending habits too. For instance, you might notice that you’re more likely to spend money when you spend a few hours on Instagram. If so, you might need to cut down your social media usage.
3. Get Organized When it Comes to Loans
As a Gen Z youngster, you might not need a loan just yet, but there’s a good chance that you will need to borrow money at some point in the future. You could need to borrow the cash so you can buy a car to take you to and from work. On the other hand, plenty of Gen Z consumers will also need to invest in loans to help them get their education.
The key to success is knowing what you’re getting in to. Make sure that you learn everything there is to know about your lending options before you get started, including what kind of quick and easy loans are available to you, and how you can make the most of your credit score.
4. Hide your Savings from Yourself
When you’re still young, it’s often difficult to be disciplined with your money. Often, you’ll start with the best of intentions, then end up suddenly spending the cash you’ve saved on a trip with friends or a new game when temptation comes calling. One of the best ways to prevent this from happening is to hide your savings somewhere that you can’t see them.
Open up a separate savings account and set up a direct payment each month that sends money from the cash you earn into this account. Eventually, you won’t miss the money you’re losing to your savings, but you’ll have a nice little nest egg that you can come back to if you ever face an emergency.
5. Think About Retirement
Finally, remember that you’re never too young to start thinking about retirement. Although it might sound like a long way off now – particularly when you’ve just started work, the faster you start investing in your future, the better off you’ll be. Remember, if you start saving cash when you turn 18, then you’ll have a lot more to spend when you’re older than if you started when you were 35.
When you’re looking for ways to earn money in a part time job or career, remember to pay attention to the retirement options you can set up for yourself with your new employer.