They might be known as a supposedly entitled generation that's highly connected and always energized and yet, many millennials are living in a financial world where paying off debt and buying a home seems out of reach.
"Most millennials don't believe that they will ever do better than their parents and that they will always live with debt," says author and financial coach David Campbell Lester.
Often, one of the biggest burdens students and people under the age of 30 face is paying off their debt. Lester advises managing your debt by using fixed payments. "Figure out how much you can afford to pay each month and set the payments as high as possible," he says. "Based on your payments, figure out when D-Day or debt free day is, and mark it on your calendar."
And once millennials start working and saving, they enter another loophole of spending a lot of money during the first year of their new jobs. First jobs require socializing, new clothes and new costs for living and commuting, Lester says, but don't get caught up with spending — start laying out your budget as soon as you can.
He also recommends getting a registered retirement savings account (RRSP) to not only start saving, but to also receive a tax return for that big trip or car for which you've been trying to save up. Some employers also offer to match your RRSP contributions, which can help you max out your savings in the long run.
To start, Lester offers his best tips for budgeting and looking ahead into the future. Here are 10 ways millennials can start saving their dough — and if you're reading this and you're over 30, hey, it's not too late to start saving like a millennial.
