Broke Millennial

5 Things Millennials Should Know About Money

Yes, this is for you, college students

When it comes to money, we all know the cliche sayings, whether they are true or not. Have a rainy day fund, pay yourself first, pay your bills on time, you can snowball your way out of debt, etc. As these are all true, there is so much more to being good with money. It all first comes from understanding money beyond the surface value of things. Here are 5 good things to know when it comes to money and money management. 

1. Other people will enjoy spending your money

We all know your twenties and early thirties is a time to live. Everyone is having big blow out birthday parties, destination bachelor and bachelorette parties, and wanting to travel the world. These things are all fun, and all sound intriguing and like a good idea at first. In reality, it leaves you in an awkward spot to explain you cannot afford the big birthday gifts and drinks, along with that $2,500 vacation to Mexico because they are getting married. When it comes to money, other people love spending your money. They are not you, and do not know your finances. They say this day only comes once in a lifetime for them... but you have plenty of other friends and family members that it comes for also. Next time this situation comes up, remember, other people love spending your money and this situation IS NOT the once in a life time thing they keep saying it is.

2. Have more than one savings app

We have all heard of one savings app or another whether it be mint, or digit, etc. These are all genius! They really will help you financially save. BUT, don't think that just because you have one savings app that takes a random .12 cents from your bank account every other day you are set. This is definitely a good rainy day fund, vacation fund etc. but you should have something else also. 

Having an automatic savings amount taken from your paycheck before you even see it is the best way to create a savings account that will be sufficient. You could also use an app that will take your purchase, round them up to the nearest dollar, and put that into a savings. Acorns is a good app for this.

3. The truth behind those small purchases 

We are no stranger to those small purchases adding up, but why is it that it seems like they add up so fast and to such a large amount?! The culprit of this is the mindless routine spending. Sure, you didn't need the 7 dollar coffee... but if you only got it every once in a while it would not be a big deal. It is getting that $7 coffee everyday out of routine behavior. 

Even if you can't break that habit, know you need to factor it into your budget. This will save you the shock of seeing how many small purchases you made and how much they cost all together!

4. You don't need a physical building to keep your money safe 

It is 2017. It is the age of being digital... yet so many millennials are still holding onto needing a physical place to put their money. The physical building will not keep your money any safer than an online only bank. Of course, this is an adjustment, but there are so many awesome online only banks out there. Most of these virtual banks belong to ATM's that already exist making that part much easier. With the age of everything being digital anyway, why not use the best bank there is out there?

5. Negotiate

Yes, savings is important. You want to have a savings account and know how to save. But, this is a reminder to remember to negotiate. You should know your worth. This isn't to say you should walk into your annual review expecting a $10,000 raise. That is a little crazy. But, negotiating a raise or a bigger raise could help you financially. It is an easy step a lot of people over look.