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Money Hacks for Millennials in 2021

Money Hacks for Millennials in 2021

Millennials have had a bad rap when it comes to handling finances. Criticism ranges from playing loose with the budget, forgetting secondary income, or not caring about financial stability at all. While not every millennial is guilty of these, there is always room for improvement when it comes to saving and investing.

Alas, saving money is a wise practice for many different reasons; it offers peace of mind, enlarges your options for better quality of life, and disciplines you to become a better provider.

Here’s a tldr breakdown of our suggestions:

Main Expenses Projected savings per month (PHP) Difficulty of saving
Food 2,000- 5,000  (depending on your appetite) Hard
Hobbies 1,000-2,000 Easy
Entertainment 650 Medium
Online Shopping 500 to everything you’re worth Easy
Clothing 500 Easy
Phone/internet plan 1,000-2,500 Medium
Other subscriptions 500 Easy
Transportation 200-500 Medium
Utilities 1,000-2,500 Hard
Rent 500-1,500 Hard
Total projected savings per month 6,200-14,650

Where Do Millennials Place Their Money?

– Food, rent and utilities take up the most expenses range per month, since we consider that these are the major important things to spend with.
– Entertainment and other subscriptions:
1. Video Games
2. Subscriptions
3. Netflix subscription
– Hobbies and Phone\Internet plan can take up 10 to 20% of your monthly income.
– Online shopping and clothing like:
1. Lazada
2. Shopee
3. Apparel
– On average, transportation can also take a huge chunk of your monthly expenses. But since work from home and alternative working options are being encouraged right now, we’ll peg it to around 5% of your monthly expenses.

 

The Projected Savings:

According to the table, we listed the projected savings per month of a millennial that can earn from their major expenses to least priority. Here are some breakdowns we’ve got:

  • Food is a basic necessity but if we can budget it accordingly we can save at least 2,000Php up to 5,000Php , depending on your appetite.
  • For online shopping, clothing, entertainment and other subscriptions, it gives enjoyment, excitement, and fun moments especially when times get rough. But while unwinding, we can save up to 500Php per category.
  • Utilities and rent expenses are one of the important things where their money goes. For utilities the projected savings is from 1,000Php to 2,500Php and for rent, is from 500Php to 1,500Php per month.
  • Since millennials are hooked on using social media or gadgets nowadays, they use data or internet plans too. If you plan to save money under this category you can save up 1,000Php up to 2,500Php as the projected savings per month.
  • As it is mentioned with entertainment, hobbies also give enjoyment. Sometimes we are not aware of doing something and we spend a lot of money, but if you guard yourself in spending much for this, you can save at least 1,000Php to 2,000Php.

Money Hacks:

You saw the breakdown and it has a big amount from each category, right? But how can we achieve saving more?

  • Bring home-cooked meals when going to the office.
  • Make a meal plan.
  • For video games, resist microtransactions as much as you can. Don’t buy on release and wait for a few months for discounts.
  • For streaming services like Netflix from premium subscription, consider downgrading to standard. Review and downgrade your subscription plans. If you don’t need mobile data, consider canceling your postpaid plan.
  • Cut down on online food orders.
  • Try buying used pre-loved clothes and gadgets.
  • Open separate savings account that you won’t touch except for emergencies.
  • Buy necessities in bulk to get better prices.
  • Cut down your budget for expensive hobbies. Try indoor activities and DIY.
  • Observe the usage of appliances at home. Monitor air conditioning heavily.
  • Scrounge the internet for coupons and discount cards for groceries.
  • Don’t save your credit card on online stores. Make it inconvenient for you to use them.
  • Let items sit on your shopping cart before checking out. Sleep on it!
  • Automate a fund transfer to your savings every payday.
  • Get a cashback credit card
  • Cut TV cable plan for good if you’re watching on Netflix or YouTube anyway.
  • Maximize free trials of subscriptions or services. Finish what you want within the trial period.
  • Double-check your reward points!
  • Buy seasonal vegetables. They’re way cheaper.
  • Make gifts DIY instead of buying them.
  • Declutter your home and sell non-essentials for cash.
  • Disable/hide ads on your favorite website to avoid temptation.
  • Walk more. Open areas can be safer instead of public transportation these days.

 

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