Three millennials share their top financial tips for saving money

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With a growing body of financial education available on social media or a quick visit to a search engine, it can be difficult to separate relevant advice from click traps, especially for young Canadians.

With a growing body of financial education available on social media or a quick visit to a search engine, it can be difficult to separate relevant advice from click traps, especially for young Canadians.

To find out what advice actually makes a difference to your bank account, The Canadian Press spoke to three millennials who offered the words of wisdom that worked for them.

Treat your credit card like your debit card

After reading David Bach’s book “The Automatic Millionaire,” Stefan Palios, a 29-year-old freelance writer and freelance coach in Windsor, Nova Scotia, began to treat his credit card like his debit card. using it only for necessary expenses and paying in full each month.

“When you know you have to pay off your credit card in full at the end of the month (or risk 20% compound interest) it becomes a good incentive not to be frivolous. Or, at least it was for me.” , did he declare. noted.

“I even paid my rent on my credit card, which not only gave me great rewards, but also a very, very good credit score,” he added, since his balance was paid monthly.

In early 2015, the then Palios owner began accepting credit card payments on RentMoola.

“You do charge a payment processing fee, but my rewards were slightly higher than the fee, so I still took advantage of it. The real reward for me, however, was flexibility. I didn’t have to make sure that the exact amount was in place. my bank account on the day of rent for withdrawal. “

“Plus, the flexibility of it all is so underestimated. It’s not just the rewards and the credit score. It’s the fact that I can buy what I need now and pay it off when my next paycheck arrives. This allowed me to continue to invest in my investments and buy in bulk, which resulted in significant savings. “

Palios makes sure he doesn’t overspend on his credit card by only charging for items like groceries that he knows he can pay back on his next check. the entire balance each month. “

Make saving a top priority by setting up automatic withdrawals

Jack Harding, 29-year-old managing partner at Diner Agency in Toronto, said the best advice he received was to treat savings and investments like your rent or mortgage – an absolute necessity.

Prior to this advice, he spent his 20s figuring out to the penny what he could and couldn’t spend each month and treated the rest of each month as an opportunity to splurge.

Her mindset changed after spending time following financial education channels on Instagram and YouTube.

“[Their advice] has totally changed my approach to finances, “he said.” I view savings as non-negotiable and have implemented automatic withdrawals to avoid the temptation. “

He decides how much to transfer by looking at his income and subtracting rent, food, and other necessities such as internet and telephone. “I made sure my savings were a much larger portion than my play money and treated it like I had no choice, hence the automatic withdrawals,” he said.

Reassess your relationship to material goods

Keagan Perlette, a 28-year-old freelance writer in Calgary, said self-help author Eckhart Tolle had inspired her to thrive in the beauty and joy that surrounded her, rather than in the material things. .

Instead of buying items that promise to improve her life, she’s more aware of the personal value of what she’s buying, she said. This advice was especially helpful to her when she was paying off her student debt and felt like she couldn’t have anything beautiful or frivolous in her life.

“Making discretionary purchases has become a slow and thoughtful process for me and it has really helped me curb impulse buying and… cultivate the patience to save for larger purchases or investments that will be well worth their price,” she declared.

She is saving to buy better quality items and wonders if the purchases will work in the long run.

“To make sure I’m spending my money on things that will bring me long-term joy, I ‘keep’ them somewhere, often on a Pinterest board or in an Instagram folder.”

Perlette pivoted to online shopping almost exclusively during the pandemic and now uses those digital spaces to admire beautiful items without taking them home.

“So many lifestyle items that I would love – from extra-beautiful linen sheets to Glossier makeup – really sell a story and an aesthetic,” Perlette said. Being in marketing has given her additional insight into how these narratives are crafted, she said.

“Sometimes it’s enough to immerse myself in a brand’s Instagram content enjoying the beauty of the items ‘in the store’ and leaving them there or finding other ways to bring that ambitious vibe into my life at lower cost.”

This report by The Canadian Press was first published on September 7, 2021.

Léa Golob, The Canadian Press


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