- Personal Finance
Saving Money Ideas For Millennials
There are some simple concepts and ideas to save money for the long haul. It comes down to discipline and common sense and knowledge. I share with you some ideas that has worked.
A List Of Ideas
- Don't smoke. It not only is good for your health but it can save you thousands of dollars over a lifetime.
- Coffee brands can be a big difference. Consider choosing Dunkin' Donut coffee over Starbucks.
- Use rechargeable batteries whenever possible. A typical AA battery can cost 1 dollar each. A rechargeable battery cost a bit more to purchase but can be re-used over 100 times.
- Bottled water can be expensive if purchased one at a time. Consider buying it in bulk and save money.
- Auto maintenance is expensive if you go to the dealer. For many simple maintenance procedures such as brakes, tires, oil change and muffler, it is cheaper if you find a local mechanic who you can trust.
- Auto insurance and home insurance can be reduced if you choose a higher deductible. Choose $500 deductible over $250 deductible can save up to 20% on premiums depending on your insurance company.
- Always get the full glass coverage option on auto insurance. It only cost a few dollars and can save hundreds when you get a chip on your windshield.
- Driving on roads and avoid tolls if possible. Sometimes, it is much cheaper to take an alternate route and avoid the big tolls. It may take a little longer to get there.
- For dental procedures, spend some time and find a dentist that will accept full coverage from your dental insurance. There are a few good dentists that will do that. Most will charge you up to 50% of the cost. If you have to drive a little farther, it is still worth it. You only go to get checkup twice a year.
- Never keep a balance on your credit card. Always pay off every month to avoid the revolving credit scam. You can end up paying a high amount of interest.
- Make sure you have health insurance. Even though you are young and healthy, accidents do happen. I want to relate a true incident. A relative of my told me recently that their son-in-law was hiking in some park and fell and broke his leg. They needed to rescue him with a helicopter. He didn't have any insurance and ended up with a $30,000 bill. You don't want to wipe out your savings with one freak accident.
Compound Interest Table
Most of the items I mention are small in amount but they are repeated hundreds of times over your lifetime. For example, 2 packs of cigarettes per week can cost $1000 per year and $40K over a life time. It is wise to watch the small things that will accumulate. It is Ben Franklin that says "A penny saved is a penny earned." Well, in today's terms, it probably is more realistic to say "A dollar saved is a dollar earned."
The key to saving money and accumulating wealth is to watch your spending habits. Some small items can lead to big savings. Remember, it is not how much you earn but how much you save.
Some Related Info
- The Most Common Ways You Waste Money (and How to Save It)
All too often we focus on cutting out the little things (like a daily cappuccino), when we should really focus on our major expenses for the biggest impact. Here are seven areas we spend or waste the most money—and how to plug those leaks.