Because bills and debt and babies and fur babies and vacations and brunch. Oh, brunch.
Young millennials, ages 18-24, who have less than $1,000 in savings
Older millennials, ages 25-34, who have less than $1,000 in savings
Track your income and expenses, damnit!
First and foremost, if you aren’t tracking your income and expenses on a monthly basis, how the hell are you saving money? You pay bills, make a couple trips to Chipotle, and load up your Amazon cart, and as a result, your checking account starts to look like Grandma’s old cellar. Dusty, lifeless, and a bit disturbing.
An easy way to save money is to start by tracking your income and expenses. Start with pen and paper and write down everything. Generally speaking, that includes your monthly paychecks, bills, debt, and expenses like shopping and going out to eat. Even better, grab a white board and stick it on your fridge to force yourself to look at your monthly figures. Seeing the numbers will help you consistently under spend and save more.
“An easy way to save money is to start by tracking your income and expenses.”
Research your savings and checking account terms
Have you had the same savings account with the same bank since you were nine? Yup, I did, too. Until I started looking into banking fees and interest rates.
A member of the Debt Free Millennials Facebook Group researched this and as a result, they reported that switching savings accounts with Bank of America helped increase their APY from .01% to .03% and closing a checking account saved them a $12 monthly fee.
- Are you maximizing the interest that you are earning in your savings or money market accounts?
- How much are your monthly banking fees?
- Are you penalized for withdrawing cash from other ATMs?
List items for sale on buy/sell apps and Craigslist
Instead of hauling off your junk to Goodwill or letting your 1992 Crockpot collect dust, sell the damn thing! Add buy/sell apps to your list of easy ways to save money. I use apps like OfferUp and Let Go. I also post on Next Door and Craigslist. Here’s how you do this properly:
“Lamp for sale. $15 OBO (or best offer).”
Instead, you could spin it like this:
“Off-white table lamp with beige shade, perfect for your next reading nook or bedside table! Shade is harp-style so you can easily customize later. Clean, no scratches, but needs a new light bulb. Colors are neutral to go with your decor. Asking $15 OBO. Pick up in Mission neighborhood.”
See how much more appealing the item gets when you add a description?
Take online surveys with Survey Junkie or Survey Rewardz
There’s no better way to pass idle time than with a quick survey. I’ve taken online surveys for years, starting with e-Rewards but I’ve since moved on to other platforms that have quick payout options.
Survey Junkie connects you to big market research firms to take surveys from cars to financial services to grocery shopping. I even took a survey on Starbucks’ new blonde espresso (anyone try this yet?). Qualifying surveys are awarded points which can be redeemed for cash. I’ve been on this platform just a few weeks and already have close to $20 and spend about 20 minutes per day taking a survey. Minimum $10 to cash out via PayPal or e-gift cards.
Cash back credit card
Before I get into this, let me be clear. If you have credit card debt, this option is not for you! If you consistently carry a balance on your card, this option is not for you!
Ahem. Now then. The cash back credit card.
If you are diligent in paying your credit card in full every month, then you may want to consider a cash back credit card. These cards usually hand out quarterly incentives like 5% cash back on groceries or simply by shopping at Wal-Mart. Cash back cards create easy ways to save money on purchases you already make every month.
Consequently, I take advantage of the Chase Freedom credit card. No annual membership fees, great online interface, 1% unlimited cash back on all purchases, and 5% cash back on quarterly bonus categories.
Is Chase Freedom right for you?
- Do you put at least $150 per month on your credit card?
- Is your credit card used for everyday purchases like groceries, utilities or shopping?
- Do you pay off your credit card every single month and carry a ZERO balance from the previous month?
- Are occasional discounts on things you already buy something you would enjoy?
If you answered yes to the above, then Chase Freedom might be your card! Check out more info here.
Take advantage of conservative investment vehicles
Take a look at Certificates of Deposit for easy ways to save money for your short to intermediate savings goals. Short to intermediate term savings goals, like purchasing a car or putting a down payment on a house, usually don’t make a whole lot of interest when the money is in a savings account that makes .01%, therefore CDs are a better alternative.
According to Investopedia, a Certificate of Deposit (CD) is a savings certificate with a fixed maturity date with a fixed interest rate. The rule is that you aren’t allowed to withdraw money from a CD until it reaches its maturity date. There are a ton of CD options out there ranging from three months to 10 years.
Ultimately, you’ll want to look for a CD that has a high interest rate and a maturity date that aligns with your money goals. Let’s say you know you want to buy a new car in the next year. You could identify a CD that has a one year maturity date with an interest rate of 3%. If you stash $5,000 into this account, you’d make a bit more than with a traditional savings account.
|Savings type||Certificate of Deposit (CD)||Traditional Savings Account|
|# of months in savings||12||12|
|Interest rate (compounded annually)||3%||.01%|
|Interest accrued after 12 months||$150||$0.50|