Observations on life

A simple step to help millennials save

TeenVogue has an article entitled “4 Super Simple Tips That’ll Help You Do The Impossible: Actually Save Your Money”

Here are steps one and three below. Two and four are talk to your friends and save at any age … brilliant. I guess I’m just too old to appreciate this stuff. How dumb do you have to be to need this kind of advice? How common sense challenged are you to need an app to set a savings goal? 

Don’t get me wrong I like apps. I have one that checks my heart rate another that tracks my Fitbit and my favorite one that lets me point my iPhone at foreign language text and it shows me it in English; it helped me avoid eating tripe here in Spain. 😃. I have lots of apps. I even have one that when you press it says to you …

“Hey Dummy, the secret to saving is to save automatically out of each paycheck so you never get your hands on the money and then you can do whatever you like with what’s left after paying your living expenses as long as you don’t use a credit card.”

See, only one simple rule based on one simple idea; common sense. Something I hope even millennials can appreciate. Her is rule 1A; stop wasting money on all those apps you don’t need and will never use … I have a lot of those too. 😎

1. Start paying attention to small purchases, which can quickly add up.

How many PSLs have you ordered from Starbucks this week? What would be the financial impact if you made your coffee at home? “Start to pay a little bit more attention to what you are already doing and understand that there is decision-making going on all the time,” says Chatzky. Spending $5 a day at Starbucks can add up at the end of the month. Reviewing your credit card bill each month and gaining a true understanding of how many times you actually one-click shop at Amazon can be eye-opening. It might also help you catch charges that have been accidentally billed to your credit card.

3. Technology can help.

PlentyFi is a financial planning app that Chatzky recommends, especially if you have a job that doesn’t give you access to a retirement account.

The nifty app allows you to set up a savings goal for purchases, which can be as small as a new pair of shoes or as large as a mortgage for your dream home. It lets you set a deadline and links to your checking account so you can schedule payments. You can also track multiple savings goals and visualize how much money you have left to earn in order to reach your goal.

If you want to learn more about saving through more traditional venues, ask your parents if they have a financial advisor that you can meet with. You can also try speaking to the financial advisors and tellers at your local bank branch — they are a wealth of knowledge.

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