According to Student Loan Hero, the average 2016 college graduate has at least $37,000 in student loan debt. As a result, the millennial generation is forced to delay making major purchases, such as a car or home, and starting a family. If you’re a recent college graduate struggling to make ends meet, what considerations should be made to help save money for a comfortable future?
Can You Afford to Live On Your Own?
Unfortunately, many millennials feel that there is a stigma associated with living at home. Once they graduate college, the expectation is independence. Yet, most young adults in this age group simply cannot afford a rent or mortgage payment right out of college.
Move Back Home
While it is perfectly acceptable to live at home following your college graduation, it is important to approach the situation differently than when you were a kid. Acting as a contributing member in the household, whether it be cooking, cleaning or paying rent, you’ll know what to expect when you afford to move out.
Find a Roommate
If you feel strongly about living on your own or don’t have the option to move back home, consider finding a roommate to split costs. According to SmartAsset, living with a roommate can save you $700 or more each month. Though having a roommate can save you money, it is important to find someone that you’re able to live peacefully with to avoid any issues.
Create a Monthly Budget
Budgeting is not as complicated as it may seem at first glance. An online worksheet will ask you for your salary and break down all expenditures into general categories. Your discretionary income is then calculated for you. Creating a budget is important to know how much money you have leftover to save or spend from each paycheck.
Where Can You Cut Costs?
Whether we realize it or not, we all make day-to-day purchases that are frivolous. For instance, if you buy your lunch every day, you’re spending an average of $50 a work week. An easy way to save money on food is to bring your own lunch to work. A twenty-dollar bill can go a long way, while saving you double or more what you would have spent.
Also, be conscious of your surroundings. Do you keep lights on when you leave the house or continually go over your cell phone’s data plan? Little changes like turning off the lights and only using your phone’s internet while connected to Wi-Fi can go a long way when trying to save money..
Credit Cards and Your Credit Score
Although opening your credit card bills each month can be overwhelming, it is crucial to avoid paying the minimum balance due. When you don’t pay off your balance, the credit card company charges you interest. If you find yourself unable to pay the full balance each month, consider swiping your card less. Remember that when you pay on time and pay more than the minimum payment when possible, your credit score is positively affected.
A savings account can encourage millennials to spend and save their money wisely. To learn more about your options with Ion Bank, contact us or stop by one of your locations today.