“Am I adulting yet?” Every millennial has asked themselves this catchphrase. It’s commonly heard from twenty-something-year-olds who have legitimate concerns on how to survive.
We are unprepared and scared for our well-being because our parents didn’t teach us personal finances or how to pick the right partner. Older generations made economic policies, such as Social Security and raising the national debt, that gambled away our future.
Can you really blame us for feeling hopeless? Millennials are some of the hardest working people and the most innovative. Look at Uber, Airbnb, and Facebook. We are far from lazy and we’ve disrupted many industries for the better.
To my friends and peers, we struggle every day to keep ourselves afloat. We’ve got bills to pay and student loans to worry about but there are ways to help you make better decisions and save money.
- Food and groceries. Shop within your budget even if it means sacrificing a pleasant shopping experience. Stores like Whole Foods, Target, and Publix will be more expensive than Walmart or Aldi. Aldi is cheaper than Walmart but the portions are smaller. However, if you’re only feeding a few people or yourself then shop there often. If you’re feeding a family then buy in bulk. Dollar stores also carry basic items like canned food, snacks, and even spices all for a dollar each. Use coupons whenever you can. Find them online or in your local newspaper. Download rewards apps like Drop or Dosh. Some of these apps will give you cash back or points to redeem for gift cards. An important tip to remember before you grab groceries; never shop hungry or you’ll be tempted to buy junk food. Also, don’t eat out but plan your meals ahead of time
- Clothes. Wear your clothes for a few more years even if they’ve gone out of style. Always be on the lookout for coupons and shopping online is usually cheaper. Compare the prices in-store and online for the same store. Used clothes are always cheaper and you can score stylish items for less. Hit garage sales in rich areas or thrift shops. The Salvation Army has a fifty percent off sale on Wednesdays depending on the location. If you’re looking for ladies’ officewear, ThredUp has name brands up to seventy-five percent off.
- Cars. Never buy a new car. They’re rapidly depreciating assets and it’s a costly investment. The moment you drive it off the lot its value drops. A five or six-year payment will eat up your budget in the long run. Think about it, is it worth investing in a new car if you get in an accident or if someone dents it? Instead, buy used in cash if you can. There are plenty of safe used cars just ask for a Carfax report before you buy it. You never want to buy a car that’s been in an accident because serious problems can crop up in the future. Drive it until the wheels fall off. When buying a car there are three main things to consider. Safety comes first, gas mileage, and maintenance costs. All other flashy things are unneeded.
- Credit Cards. Start building credit now because it will affect your eligibility for buying a house, obtaining a loan, or starting a business. Compare the perks of different credit cards and banks. Find one that suits your lifestyle like if you travel a lot then choose a travel rewards card. Capital One has an option for students and building credit. Keep in mind that some banks might charge annual fees. Also, compare the interest rates of different cards and banks, you want a lower interest rate. Always pay your credit card bill in full instead of the minimum payment and prepay for next month. For example, if your monthly bill is $300 send in $320 if your budget allows it. Doing these helps increase your credit score.
- Energy. You can save money if you decide to use it during off-peak hours. This means do laundry, dishes, and other tasks that require more water and energy, after 9 PM when fewer people are using it. Keep a close eye on how much energy and water companies charge you. Sometimes they overcharge unsuspecting customers so call them right away if something is off.
- Hospital and doctor’s bills. It’s little known that you can negotiate your bills even if you have no health or dental insurance. This doesn’t mean it works with every hospital and practice but learn to negotiate. They will work with you if you have no means to pay. Talk to the hospital about your financial situation and ask if they’re any charities willing to help. Offer a cash payment to reduce your bill. Consider looking into Samaritan Ministries, which is a Christian based healthcare organization. They’re not an insurance company but they’re more like a charity to help fellow Christians with healthcare.
Yes adulting is hard but the trick is to live within your means. Buy generic brands whenever you can and shop at cheap grocery stores. Spend on your needs first rather than your wants.