How to Save that Moolah

Peeps, I bought my house. It's still unreal. Like, me committing to something? Not a far throw but still it is not easy. You truly want to have it bad enough.

Please know this is salient advice for saving money in general. It's important to have a three-month rainy day fund, to save for a new car, a certain purse, your kid's college fund, whatever the case may be; I got you.

Feed your savings

My dad, or should I say Mr Penny Picherson, told me that you have to feed your savings account like you do a dog or a pet. When you get money, know what you want to go into savings whether it be a dollar amount or percentage. Online banking makes this easy that you can just transfer the money to different accounts. You can also set up your direct deposit so a certain percentage goes to your account without you knowing. Make sure it's fed!

Make a budget

This goes without saying you need to learn the age old concept of wants versus needs. Do I need new heels? Do I need these Stuart Weitzman heels or would I be just fine with Target? Set up apart what you want to spend for gas, groceries, going out, travel. Decide what's important.

You can still have fun.

This life doesn't have to be so boring. You can still have fun. Just make adjustments. I'm a big fan of getting Happy Hour as opposed to getting dinner. You can also entertain at your home and do a potluck or BBQ. Going out for lunch every weekday can add up, but maybe just once a week will make a different. There's a more affordable way to live your life.

Staycations or Local-cations

I used to fly all the time and it took a lot out of me financially doing cross country trips home 2-3 times a year. Yes, there are cheap ways to fly but traveling is indeed a luxury. Since being back home, my goal to own a home became more laser focused and sacrifices had to be made. I try to make the best of what's around me. Yes, this is me bragging about being an Oregonian that I can go to the beach, the mountains, awesome hiking spots, Seattle within a decent car ride.

Side note, I realized that local + vacation was just location so I'm starting local-cations. Not my finest word combo but we'll roll with it.

Gig Work 

Don't bash it. According to Experian, 50 percent of Millenials have a side hustle. WOW. That is a lot. Sometimes we have to go the extra mile, right? There's tons of work out there that is part time and flexible from your rideshare options, serving, childcare, focus groups. Whenever I get extra income, a bonus from work, W2, etc; you know where it's going? Directly into savings.

Make a goal and stick with it

I told myself I needed to get a certain percentage for a down payment by the end of the year, divided it by twelve and each month I had to put a certain amount in. Yes, I'm like most Americans that scrape by, especially when that first check goes to rent, credit card bill, cel phone, electricity, car payment, the list goes on (and suddenly my heart beat increases!). So usually my first paycheck I may put a smaller amount in, second paycheck, I up the ante.

Invest

I've heard CRAZY stories about how people can solely live off their investments. How much passive income (money that is made when you're doing virtually nothing. Little sleep fairies working while you're dreaming of Fabio.) people make that supplement their income. My first stroke with investing was putting $250 in a CD by TD Bank. Six months later and I gained $50 and cashed out at $300. Of course, I had to be patient but if I let that money just sit there, I would have A) spent it, B) it would have just been $250.

Living affordably

I feel like this goes without saying but I feel like it is especially prevalent for "Millennials" to want to live in the cool, trendy 'hoods with cute cafes, decent bar crawl space, probably a Whole Foods. IDK. I have never liked living paycheck to paycheck for a zip code. That, and I like ample parking. Save your money where you can. As much as you love the cute apartment, do you want to live there 10 years from now and still not own in? Nah!

Or get a roomie! Hey, it's not forever but we're all in this together (shout out, High School Musical).

Pay off your Credit Cards

I made mistakes when I was a young thang and skipped CC payments, acquired late fees and did what many folks in their early 20s do and mess up their credit. So when I had to build it back up, I had to truly prove myself. I used my $500 limit card like a charge card and sure enough it paid off, banks started trusting me more. However, the bigger the limit, it was harder to pay it off one-and-done style like I had been. And I would do a little math in my head how much I would spend on interest alone. Try it, it will make you cringe.

I'm not here to tell you to stop using them. I know everyone's parents would tell them "use this in case of an emergency" and they do happen. Just work out a balance that gets you closer to zero.

Best to you and whatever your financial goals are in 2019!

#money #advice #millenial #savings #howtobuyahome