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Your income gives you the opportunity to pay for room and board, save for retirement and achieve other life goals. Some people are fortunate enough to have just one main source of income to meet all of their needs and wants. Others, however, have to stretch every paycheck to cover their basic expenses. And according to a report by the TIAA institute, Millennials are the generation most likely to face financial pressures in areas like numbers blame and save money.

Millennials – classified according to the Pew Research Center when people born between 1981 and 1996 received a lot of attention as a generation struggling to balance their living costs with their financial goals. And a large part of this imbalance could be due to not making enough money to cover their costs.

According to the US Census Bureau, the average pre-tax income of millennials in 2020 was $ 71,566 Sunmark Credit Union study on the spending habits of different generations found that millennials spend an average of $ 208.77 per day. This includes the average daily cost of groceries, housing, utilities, insurance, entertainment, eating out, and more. That number is $ 1,461.39 spent each week and $ 5,845.56 per month. But by the end of the year, the average person will have spent $ 70,146.72 – just below the average millennial income.

When they spend almost as much as they make each year, there is less room for them keep for emergencies or invest for retirement. But with that average rental cost – Millennials’ Biggest Spending – Weighing $ 1,584 for a studio and $ 1,636 for a one-bedroom room in the U.S., many millennials find that their wages just aren’t enough to keep up with everyday expenses To keep up with life.

Factors Affecting Millennial Profits

The 2008 recession took a huge financial toll on millennials. The lack of jobs meant fewer millennials were able to earn income or advance their careers, which set them back financially. Indeed, a report was made by a nonprofit group called Young invincible found that the 2008 economic downturn cost younger workers an estimated $ 22,000 in lost earnings per person.

Even after unemployed millennials finally found jobs in the post-recession years, their salaries had come down. The Hamilton Project, an economic analysis by the Brookings Institute, found that millennials were making about $ 3,640 per month before economic job losses, which is the equivalent of $ 43,700 annually. But two years after the onset of the recession, those who got jobs earned an average monthly income of just $ 1,910 ($ 23,000 per year). Millennials have had to work their way up from this astonishing income gap.

And while the COVID-19 pandemic 2020 An effect that spanned all age groups, it seemed like millennials were taking another blow as they are currently the largest generation in the workforce. According to Pew Research Center, 30% of Americans between the ages of 30 and 49 report that they or someone in their household has lost a job due to the pandemic. However, it may be too early to see the full impact of the pandemic on the income potential of Millennials.

How millennials can keep more of their money

While the problem of low wages may not be resolved overnight, there are a few ways Millennials can keep more of their money and adding new sources of income. Sideline jobs have become increasingly popular as a way of supplementing their income, saving more and even having a little more spend money. And while the extra money can go a long way, Millennials might also consider cutting down on some of the “hidden costs” that devour their money, such as Interest costs and recurring monthly expenses they may have forgotten.

the mint App can analyze your income and expenses and help you draw up a budget based on your spending patterns. This can help you uncover unnecessary or undesirable Spending so you can save extra money.

And although Credit cards can be a useful financial tool when it comes to Construction loan and harvest Reward Points and Cashback, you’re be taken of interest if you do not pay your balance in full.

If you already have a balance that seems difficult to pay off, you can consider a. to use Credit transfer card with a 0% introductory APR period. Consider the following maps:

US Bank Visa® Platinum Card

On the safe side of the US bank

  • reward

  • Welcome bonus

  • annual fee

  • Introduction of APR

    0% for the first 20 billing cycles for credit transfers and purchases *

  • Regular annual interest

    14.49% – 24.49% (variable) *

  • Transfer fee for the credit

    Either 3% of the amount of each transfer or a minimum of $ 5, whichever is greater

  • Foreign transaction fee

  • Credit needed

Wells Fargo Active Cash℠ card

  • reward

    Unlimited 2% cash rewards on purchases

  • Welcome bonus

    $ 200 cash reward bonus after spending $ 1,000 on purchases in the first 3 months after opening an account

  • annual fee

  • Introduction of APR

    0% APR on purchases and qualifying credit transfers for the first 15 months after account opening

  • Regular annual interest

    14.99% to 24.99% variable for purchases and credit transfers

  • Transfer fee for the credit

    Introductory fee of 3% (minimum US $ 5) for 120 days from account opening, then up to 5% (minimum US $ 5)

  • Foreign transaction fee

  • Credit needed

Once you have your credit card payments under control, you can use your card to make extra money back when you shop. You could get a credit card with a. consider great welcome bonus – how Chase Sapphire Preferred® card or the Citi Premier® card. Welcome bonuses allow you to earn a large number of points when you open a card and spend a certain amount of money over a certain period of time.

With the Chase Sapphire Preferred® card Earn 100,000 points (worth $ 1,250 for trips made through the Hunting travel portal or $ 1,000 in cashback) if you spend $ 4,000 in the first three months after opening the card. The card allows you to pay for your regular expenses – and you should be able to pay them off right away, since you would be spending on costs you would have to pay anyway – and then use your points to take on a vacation you really want.

After all, you can invest your money and let it grow by itself over time. If you keep all of your cash in a regular savings account, your money will depreciate over time due to inflation, which means that as the years go by, you will be able to afford less and less. However, when you invest, your money can grow even if you don’t make additional contributions (however, the more you contribute, the more it will grow). If you are new to investing, here are some things to consider: Robo-Advisor to like wealth and improvementwho can invest your money in portfolios that best suit your goals.

wealth

On the Wealthfront secure website

  • Minimum deposit and balance

    The minimum deposit and balance requirements may vary depending on the investment vehicle selected. $ 500 minimum deposit for investment accounts

  • fees

    Fees may vary depending on the investment vehicle selected. No account, transfer, trading or commission fees (fund ratios may apply). Wealthfront’s annual management advisory fee is 0.25% of your account balance

  • bonus

  • Investment vehicle

  • Investment opportunities

    Stocks, bonds, ETFs and cash. Other asset classes in your portfolio include real estate, natural resources, and dividend stocks

  • Educational resources

    Provides free financial planning for college planning, retirement, and home buying

Bottom line

Millennials have already lost a lot of ground when it comes to their earnings thanks to the 2008 recession and now the Covid-19 pandemic. But by taking a few small steps, like using credit cards that allow them to save interest, invest, and supplement their income with sideline activities, millennials can begin to strike a better balance between what they need and what they do can afford.

Note to editors: The opinions, analyzes, reviews or recommendations expressed in this article are solely those of the Select editors and have not been reviewed, approved or otherwise endorsed by third parties.