If you want to know whether you are one, just check whether you were born anywhere between 1980 and 2000 or thereabouts.
Majority of those that fall under this age group would swear they have made resolution after resolution, every first week of the New Year, to have a larger bank account, and stay more focused on their priorities.
But, something happens in between, and there’s always more month at the end of the money – always.
We say we’ll shop less and save more than we did at the beginning, but a week after payday, we’re looking for extra cash, or taking a loan especially now that it’s been made easier through mobile money apps, or we remember our BFFs.
And by the way, we even write down how we spent the last paycheck but it still doesn’t add up.
Something’s entirely wrong, or we have the wrong priorities – in most cases both.
Here are the top 8 things millennials (even Kenyans) spend (read: waste) their money on, that leaves them broke for months on end.
Food
Whether its appetizers, or snacks to keep you energized while you work, fast food or fancy dinners, food eats up a substantial amount of your cash. For millennials, its worse when they don’t want to carry lunch to work, especially the week cash checks into the account, it’s takeout all the way.
Coffee
According to Wikipedia, over 22,500,000,000 cups of coffee are consumed globally, everyday! While this figure may look exciting, the effect on your wallet may not be profitable. On average, a good cup of coffee in Kenya sells for over KSh 250. If you’re a lover of coffee, check your receipts (if you keep them), and calculate how much goes to your cuppa every week. Enough said.
Fancy Clothes
Do you ever wonder whether clothes will ever have a limit? They won’t. But this doesn’t mean you have to mop up every fad that comes along. In fact, these days you just cannot keep up because fashion is being churned out at a high rate.
Shoes
There are too many shoe stores these days, majority targeting ladies with shoes that cost from as little as KSh 500 (new ones…from China, or is it Turkey). Some are really hyped on social media and you end up booking a whole five pairs just so you don’t miss out on your favorite colors and size (and the style too). Before you know it, you can’t sell the shoes, some are already starting to lose their luster, and you’re stuck with them – and broke.
Gel Manicure
Ladies, there’s no running away from this one. It’s eating up your money.
Binge Drinking
While it may not be easy catching up with the squad on weekdays, the weekend shouldn’t leave a dent on your wallet or bank account. Binge drinking is addictive, draining, leaves you with a painful hangover, and broke.
Cable TV
We all love to be entertained, but when this is eating up a significant chunk of our paycheck, there’s need to reconsider.
Online Shopping
When the deal is too good, think twice. Online shopping is all about convenience. Everything you hold dear is brought before your computer screen or your phone, and the deals just keep coming. In fact, we’re heading to the Christmas season, and it’s only going to get worse. Check your spending and cut on what is really eating up your money. This could be one of them.
Becoming a millionaire takes four things: determination, diligence, drive, and above all, discipline. Without these, you’ll only be lying to yourself that you’ll spend, then save next month – can’t happen.
Here are four easy tips you can use to get started on your journey towards financial freedom:
Save
Open a savings account and keep at least 10-20 percent of what you earn as your savings, and don’t touch this money. Let it grow. The earlier you start, the better for you. It may look difficult and painful at first, but once you get used, it becomes one of the most rewarding positive habits in your life. Always set aside the allocated percentage for savings, and if you get a pay rise, increase the amount. Banks or financial lenders look more favorably on borrowers who show early discipline of saving money.
Live within your means
To do this effectively, you need to have a budget, and ensure it’s in writing. Whatever is written is never forgotten. Stick to your budget, unless there’s an emergency (a real one), and adjust your spending accordingly. For example, instead of buying fast food (which isn’t healthy anyway), pack yourself a snack or lunch to the office – you can even try fasting for a day.
Plan ahead for your retirement
You may look at the future and think you have a whole lifetime ahead of you, but time flies by so fast these days, before you blink you’re 30, and still broke. Get an early head start and plan for your golden years.
Plan for debt
Early in their careers, most millennials desire to buy a car, spend on the latest gadgets and other items just to look the part, or fit in. But most of these things don’t add value, in fact, they’re more of liabilities than they are assets. If you take on debts early in life, you’ll spend your life paying for the debts. Ensure you have a good credit history with your bank so that you can access quick loans when you really need to.
Educate yourself on financial matters
Take time to know more about expenditure, types of loans, savings, and other money matters while you’re still young. As you get older, it may be too late to start because your finances are already a mess. Learn all the terms you need to, and discover early what you need to ditch, and what you need to keep to help you be financially healthy. You can even talk to a financial advisor for more guidance. Stay updated on business news, know more about money markets and what investment opportunities you can take up. Never stop learning.
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