This article was originally on GET.com at: 5 Money-Saving Tips For Millennials In Singapore
We've all seen articles about millennials, but who exactly are they? The term 'millennial' is used to describe those who were born between 1980 and the early 2000s, this generation is also known as Gen-Y.
The reason we are hearing so much about them is because millennials are one of the largest generations in history and due to the huge amount of changes this generation is going through, they've got quite a different worldview compared to previous generations.
A key difference is the way millennials think about money. According to Goldman Sachs, millennials will have less money to spend due to lower employment levels and they are more encumbered with debt.
While obviously the fortune of millennials in Singapore is not written in the stars, here at GET.com, we have 5 money-saving tips to help you get a good start towards a financially-secure future.
1. Automatise your savings and payments
With millennials being a tech-savvy bunch, it'll aid greatly if you are able to automatise your banking transactions so that you do not need to think about it every month.
A great way to ensure that you save money each month is to use an automatic savings account like the DBS eMySavings Account.
It provides a convenient way for you to save money automatically every month with a preset amount. And if you happen to need more money that very month, it's easy to adjust your savings amount and crediting date online as well.
For those of you who have a credit card, you should similarly pay your credit card bills via Giro so that you do not miss out on your credit card payments and end up paying interest fees and late charges.
2. Set up a monthly budget
Setting up a budget is one of the most important things to do when it comes to managing your money. A budget helps you keep your spending in check and provides a handy guide for you to tweak your spending patterns should the need arise.
3. Make paying off your debts your priority
One of the common types of debt that millennials incur are student loan debts. Student loans can be a drag on your finances, especially if you only pay the minimum $100 a month.
While it could be difficult for you as a fresh graduate to fork out 50 per cent of your salary to pay off your student loan, aim for about 20 per cent to 30 per cent so that you can clear it as soon as possible and move on to achieving other financial goals.
4. Don't feel like you have to say 'yes'
We all want to be part of a group and feel like we belong. This can put undue pressure on millennials to say 'yes' for fear of missing out.
It can be simple things like agreeing to an impromptu weekend trip to Bangkok, opening bottles of liquor while out partying or splurging on the latest gadgets.
Being able to say 'no' when you don't want to do something is part of the growing up process, it will also help you stay grounded and not spend beyond your means.
5. Travel, but do it on a budget
As millennials are more likely to put off marriage and buying their first home till a later age, that leaves them with more disposable income to travel.
If you are are a young millennial who has caught the travel bug, take heart that there's always a way to see the world without having to use up all your savings.
Simple tips like buying your air tickets ahead of time to take advantage of promotions, using the right travel credit cards to get travel discounts and free travel insurance, as well as staying in cheaper accommodations such as B&Bs, backpacker hostels and couchsurfing will save you lots of money while travelling!
Here are the two best credit cards for budget travellers in Singapore.
If you want to travel somewhere on a budget and you don't want to go too far, take a look at these 4 affordable getaway destinations close to Singapore.
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