Saving money is difficult. Even saving 1% of your paycheck can be a challenge. However, this percentage can have a huge impact on your ability to retire or become debt-free.
For example, let’s say you are 25 years old, make $40,000 a year today, and never get a pay increase from that salary. 1% of that would be $400 a year / $33.33 a month / $7.69 a week. To save this amount it could mean eating out one less time a week, skipping buying a few articles of clothing a month, skipping one night on the town a month, or many other options.
So, instead of spending that one percent of your paycheck you invest the money in the stock market.
On average the stock market has a return of 8% per year, or 10% if you
reinvest the dividends. Dividends are a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves). Assuming you get a 10% return on your investment, by the time you are 65 the 1% you save monthly would be worth roughly $195,000. All from 1% of your paycheck. Continue reading Here’s What Saving 1% of Your Paycheck Could Do…
Tax return season is upon on, and this is good news for lots of Millennials. It’s great to get a lucrative return, but what to do with this large sum of money is another question. Below are 5 ways to use your tax return wisely.
#1 Pay off existing debt – highest interest first
If you have existing debt this is a good chance to pay off a huge chunk at once. Pay off whatever debt has the highest interest rate first, usually credit card debt would fit this. Paying off debt early will save you lots of money in the long run, as you will be paying mostly principal on the loan, not interest payments. Continue reading 5 Wise Ways to Use Your Tax Return
Recently I came upon a statistic that said roughly 47% of Americans would not be able to cover a $400 emergency. I’m going to guess that number is higher for millennials than older generations. A $400 emergency could come from so many avenues: vet bills, hospital bill, car trouble, job loss, etc. Having an emergency/rainy day fund is always important to have, just in case life throws you a curveball.
Saving money is hard, so below are 5 ways to easily save money in order to build/add to your emergency fund.
#1 Price Match
Thanks to Amazon, and other online retailers it is incredibly easy to compare prices before you make a purchase. Most stores honor these competitive prices as well. A few months back when I was looking for a birthday present I went to Toys R Us to look at Lego sets in person. The setI decided on was about $45 at the store. However, the same set was only $27 online through WalMart. Upon checkout I showed this to the cashier, and I got the gift then and there at a fraction of the price for using my phone for all of 20 seconds.
Whenever you are making a sizable purchase, do yourself a favor and run it through google first. This could save you a ton of money. The only store I know that does not price match to online stores is GNC.
Continue reading 5 Ways For Millennials to Save Money This Month