Millennials are arguably more resourceful than the previous generations, but being unable to manage expenses well leads to a month-end cash crunch.
In a country where a vast majority of the populace is educated and tech-savvy, one talent is rare – managing finances. No doubt, Millennials are arguably more resourceful than the previous generations, but being unable to manage expenses well leads to a month-end money crunch. Left with no choice, most of us ask friends or relatives for financial help. However, it’s embarrassing and not feasible all the time. So what to do?
Fret not! We got a few tips that will keep you ‘un-broke’ without much effort. All you need to do is adopt some personal finance practices that will make expense management a lot easier.
Pay fewer visits to swanky cafes
Frequent dine-outs with friends or colleagues isn’t a wise way to empty your pockets. Most cafes often turn out to be a place for relishing ordinary beverages at expensive prices. Instead of such repeated outings, start making and having coffee and other common drinks at home. It will help you save a lot of money that you can spend somewhere else.
Automate expense monitoring
Millennials are digital people. We don’t like to do things manually, but digitally. We want to leverage technology to get our work done, if not entirely, then at least a significant part of it. So why not put this habit to better use? Today, there is a slew of apps available on iOS and Android that are specially designed to assist and monitor one’s spending habits. These apps notify and even prevent you from making extra online purchases. No harm in trying it.
Switch to public transport
A habit of complete dependence on rental cab services is easy to develop but very difficult to get rid of. Although they usually offer discounts and cashbacks, we still end up spending a lot more on commute than required. Instead, adopt the good habit of using public transport. Purchase a monthly bus pass or metro card to save some moolah and the environment.
Cut down on outside food
If technology has done one thing really well, it’s making food ordering simpler. Food delivery apps have made it a breeze to order whatever we wish to eat whenever we want. Plus, special discounts make it even more attractive. No wonder Millennials are ordering in more frequently than ever. But here’s a piece of sage advice – instead of risking your health with outside food, try having homemade food more often. Ordering your favourite food once in a while is ok, but making it a habit means saying goodbye to health and money both.
Now that we have shared tips on saving money in your day-to-day life, let us tell you how to grow this saved amount and create wealth for the future.
Invest in SIP
Systematic Investment Plan is one of the best ways of investing for the future. Many apps are available that cut out the need for agents in wealth management. These apps provide assistance on how much to invest and in which SIPs to invest. You can start investing in SIPs with as low as Rs. 500. The amount you choose will be automatically withdrawn from your account every month. You can increase or reduce the amounts you want to invest later.
Savings go a long way in helping you out in managing additional needs. However, why break the bank when there’s a better option to handle unexpected expenses or sudden emergencies. Here’s what you must do:
Get a personal Credit Line
A Credit Line is your reserved pool of money that you can use anytime. So how to get one for yourself? It’s simple – there’s an app for that! We live in the best time; thanks to technology, no bank visits or paperwork is required to get access to credit anymore. Fintech companies are providing quick, easy, and hassle-free credit on the app within minutes. Just download on your the Android or iOS phone and apply. Withdraw any amount from your approved limit as per your need, and repay in convenient EMIs. Interest is charged only on the amount that you withdraw, not on the total approved limit. So what are you waiting for? Get a Credit Line today and be money-ready, always.
(By Anuj Kacker, COO & Co Founder, MoneyTap)