We all likely have realized the importance of saving money because you never know what will be thrown at you next. We can embrace many frugal habits to help us get better at saving money.
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However, certain frugal habits have worked for other generations that rarely pay off for millennials. What frugal habits are unlikely to work for millennials?
Ditching the Coffee
A controversial topic in the personal finance community has always been making your own coffee instead of buying it.
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David Bach, the personal finance author, became known for the latte factor, where he urged readers to focus on saving money by making their own coffee so that they wouldn’t let the little expenses build up over time. While it makes sense to prepare your coffee instead of paying an inflated rate, this frugality habit isn’t as helpful these days.
Millennials realize there are other ways to save money that don’t involve cuting out a little bit of joy from the morning. Even though you would be saving money by opting out of the morning coffee from your local shop, sometimes the pleasure of treating yourself isn’t worth the savings.
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Coupon Clipping
While previous generations may have relied on coupons and deals to get their shopping done, millennials have other options. There are many cash-back apps and credit cards that help you save money in other ways when doing your shopping. You could also use price-matching apps to get a lower price at your preferred store, so you don’t have to shop around.
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Doing Your Home Maintenance
Previous generations may have embraced home projects to save money. These days, many younger people prefer to focus on tasks they can specialize in while outsourcing where they’re not as proficient. This is why many millennials won’t perform home maintenance, like changing filters or renovating the spare bedroom. Millennials have accepted that they can spend money on hiring professionals to ensure the job is completed correctly.
This leads us to the next habit.
DIY Everything
It wasn’t rare to see someone changing their oil or doing their own renovation projects. This frugality habit worked for previous generations, but millennials are more likely to outsource something like walking their dog to moving because there are so many apps and services that can be used to handle tasks more efficiently.
Instead of spending a weekend painting your home, you could outsource this task to focus on activities bringing in money. Millennials are more cognizant of the activites that they devote their time towards.
Preparing Every Meal
A traditional piece of advice for saving money was the idea that you should brown bag it and always bring your own lunch to save money. Even though you can still save money by preparing your own food, there isn’t always as much emphasis on a lower price when it comes to eating. For example, many millennials prioritize eating nutritious meals filled with protein.
Food delivery apps and meal prep services also handle the cooking for you so that you can focus on other activities. Spending money on quality food is an investment in yourself for many young people.
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Avoiding Technology
It’s standard advice in the personal finance community to suggest that you avoid the newest technology. You could save money by keeping your older phone and relying on your laptop. While this logic worked for previous generations, millennials often need the newest technology to perform their jobs.
In some fields, investing in the best software, the newest phone, or a more advanced laptop can be nonnegotiable. You don’t want to deal with the headaches associated with having a less efficient version of the tool that you need to complete your tasks.
Strict Budgeting
Previous generations relied on budgeting techniques like the envelope system to plan for their expenses. These days, it’s essential to have flexibility in your budget since prices are constantly increasing while your income may not be as consistent. With many millennials holding down side hustles, it’s not as easy to stick to a standard budget anymore.
Buying in Bulk
Buying in bulk was a common way to save money for previous generations since you could fill your home with the essentials so that you wouldn’t have to run out for every purchase. However, many millennials don’t have the storage space to fill up a home with toilet paper and other necessities. Buying in bulk doesn’t always make sense because you won’t have anywhere to hold these items, and they could go to waste. Millennials are also more conscious about the products that they use and how they consume.
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Making Transactions in Cash
Previous generations were able to save money by making larger transactions in cash. This practice almost disappeared since many retailers don’t even accept cash anymore. Instead of using cash, there are buy now, pay later apps and other options for financing purchases.
Avoiding Social Events
An easy way to cut out money in the past involved avoiding social events altogether. Even though you could still skip out on social activities, attending events has become necessary for many millennials since networking is considered essential to career growth. Young people find themselves attending more work-related events and conferences.
There’s also a stronger emphasis on more social gatherings lately, as it’s not uncommon for someone to have a destination wedding or be involved in more social clubs. Young people have also embraced the importance of community and staying in touch with friends. While you could save money by staying in, millennials are more likely to prioritize social interactions.
Closing Thoughts
It’s evident that how we view spending money and personal finance has changed over the years. The advice that worked for our parents and grandparents may not be as applicable today. The good news is that you can filter out money management advice based on what works for your lifestyle and your goals.
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This article originally appeared on GOBankingRates.com: 10 Frugal Habits That Rarely Pay Off for Millennials
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