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How to become a money-saving millennial
Younger generations are thinking more about their financial futures. A 2014 Wells Fargo Millennial Study showed that 72 percent of millennials are confident they can save what they need to for the lifestyle they want in the future compared to 64 percent of baby boomers. Moreover, 53 percent of millennials think about their financial future on a daily basis, compared to 40 percent of baby boomers.
While their heads may be in the right place, it's more difficult to get the wallet to follow suit. While many would like to start saving for retirement, a great deal of respondents found that they either don't have the money to, have more pressing priorities or have to pay off debt first.
Saving what you need to retire comfortably is a huge task, but it's not impossible. Here are a few tips specifically for the younger generation.
Pay off debts with the highest interest rate first
While it may seem beneficial to pay down student loans first, there are other expenses that can cost you an arm and a leg in the long run because of the higher interest rates - namely credit cards.
"Credit cards vary in what the interest rate is. All credit cards have their own terms. Always pay down the higher rate (credit card) first, beyond what's required," Luke Carey, a certified public accountant and senior financial adviser at Lighthouse Financial Advisors Inc., told Asbury Park Press. "The nice thing is student loans usually have a lower [interest] rate than credit cards."
Plan for your future now
Saving money takes a general plan. That's how students with roughly $30,000 in college loan debt end up paying off that amount in 10 years or less. It all takes a carefully crafted plan. Unfortunately, a billing agency won't create a savings plan for you. It's up to you instead.
Refer to your earnings and expenses to explore how much you can comfortably save over the course of a month. Put that money aside in a separate savings account - or better yet, an IRA or Roth IRA account - and you'll be well on your way to funding your future.
Explore some low-commitment revenue and reward outlets
The Internet and some nifty apps have made saving and making money easier than ever before. From saving on taxi fare by ordering an Uber to building a comprehensive budget using Mint.com, technology has given tech-savvy millennials a big leg up.
If you do a little research, you'll even find some outlets that help you make a little extra money on the side, too. Paid online surveys are a great example of a quick and easy revenue generator that anyone can use.
If you want to check out some of the newest income sources others are inventing, check out apps like Field Agent, Gigwalk and Rewardable, too. These services connect users with people close by who are willing to do little tasks for cash.
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