Tuesday, 12 February 2019 10:05

Majority of millennials don't have any savings

Are you in your mid-twenties? Do you have any savings? If your answer to the latter question is yes, you're in the minority.

According to official figures, over 61 per cent of 21-29-year-olds, have no savings at all. And the ones that are lucky enough to have a small amount set aside have only been able to do so because they have continued to live with their parents whilst they try their best to save up.

The savings problem in this demographic is definitely getting worse, as figures obtained a decade ago showed a much healthier outlook.

The reasons for the dire savings figures are all things we've heard before. Wages haven't risen at the rate needed to keep up with the cost of living, and other living expenditures such as travel, food and energy bills have also increased steeply.

Despite it being harder than ever before to save at a rate that is productive, however, we think there are a couple of lifestyle changes that could be made that would aid getting started with the savings process.

Personally, we believe people make a fatal mistake as soon as their wage hits their account. The majority of people will wait until the end of the month to see if they have any money left in their account; if they have, and all bills have been paid, they will then transfer this money into their savings pot. Straight away, this is the wrong way to go about things. Very rarely will anybody have any money left in their account at the end of the month.

So, instead, once all bills have been paid, and before any social outings have been arranged, money needs to be taken out of the account (possibly the same amount every month so that you get disciplined) and deposited in another account. This means that savings are a priority and not an afterthought. This should see your savings pot healthy in no time at all.

People should also try to limit what we call 'unnecessary outgoings'. This could relate to nights out and takeaway meals. Just reducing this by half will make a difference. 

Above all, be disciplined, and see the savings rack up.

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