Whether you are saving for a long-term goal or the next weekend trip, saving money is always a challenge. Especially for millennials, who live a paycheck-to-paycheck life, and have larger than life financial commitments.
According to a survey by YPulse, more than 80% of millennials spend most on groceries and dining out. It also suggests that the power of millennial spending today is estimated at $2.5 trillion annually. So, the real question is, where are you spending your hard-earned money?
The answer to that question can be anything, but if the expense is poking a hole in your savings, you need to be careful.
No doubt that saving is easier said than done! But if you are willing to save and grow your wealth, you can start saving pennies with some simple hacks and become a millionaire. Read on to find out how!
Just like any other good practice, savings can also be regulated with some renowned guidelines. The one practical budget rule that we can mention here is the 50/30/20 rule. Implying this rule would mean that you allocate 50% of your earnings to fixed expenses, 30% to what you wish to have, and the last 20% towards emergency funds, or savings.
We at RuDo have taken a step forward and created a new version of this rule. Wish to know what it is? Connect with us on our social media channels.
These budgeting rules sound good on the macro level, but what about day-to-day life? There are times that even with your best efforts, your savings account touched rock bottom. And that hurts like a pinch!
How about incorporating some cost-cutting methods into your daily habits then? As a result, you can save for the future, and you'll certainly have a lump sum by the end of the month.
Do you really need to subscribe to 5 different OTT platforms when you use only one? Or do you need to renew that gym membership you’ve only visited a few times? Ask yourself and spend less on unnecessary memberships.
Imagine if you have AED 30 in your pocket, you’ll only spend AED 30 and won’t be enticed with the thought of spending more than that. That is the kind of effect a functional account has on your thought process. It will not only limit your extra spending but will also help inculcate the saving habit in you.
If you aren’t the one driving, you can utilise that time efficiently, and if you are carpooling with someone, you will even save more. Statistically speaking, 54% of millennials spend a huge chunk of their money on taxis and Ubers. That’s why we advocate public transportation as one of the great ways to cut the extra commuting cost.
60% of millennials spend more than $4 on a single coffee. Imagine the amount you spend on a coffee in a month and then try to calculate your spending on food away from home. Isn’t that a little too much? The solution to avoiding the temptation of eating out is preparing your meals, and carrying them with you.
Most often, people get scammed and end up paying more than they should just because something was on discount. To avoid such mishaps, read the T&C carefully, and know the actual price before placing an order. One more thing that can become a pothole for your savings is the credit card in your bag. Not everything that looks good is helpful!
We relate with you! But one major reason why millennials fail to save is impulse buying. That is why, it is important to analyze the need of any item in your life, before making the purchase. When you buy something you wish for right this moment, you might feel good because of instant gratification, but what about your financial goals? Instant gratification can be compelling, but nothing can punch a bigger hole in your pocket than impulse buying. So the next time you really really want something, take a step back and think before you act.
Unfortunately no! Saving is the first step to building wealth, but you need to go a little further and invest your saved amount too. Savings can be affected by inflation, but if you wisely invest your savings, you’ll have the backup you need.
Thanks to the growing technology, savings can now be automated and a small amount, as little as spare change, can be saved without any extra effort. In fact, with apps like RuDo, you can round up your everyday spending to the nearest 10 dirhams and save the difference amount. You can then invest the spare change in different securities like ETFs and other securities.
Is spare change investment a new concept for you? Read this article and learn all about it!
So, if you are willing to save as little as pennies, we are willing to help you grow it into wealth effortlessly. To know how we will make investing fun and rewarding, join our waitlist at our exclusive website https://rudowealth.com/.
Saving is cool! Despite the preconceived notion, saving money is pretty easy if you wish to. The smallest amount like spare change can be your biggest bridge to fill the gap in your financial goals. So, what’s the wait? Start saving in your digital piggy bank today!
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