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7 Ways Millennials Can Get Their Savings Back on Track

By Maurie Backman - Apr 7, 2021 at 8:00AM
Person in glasses holding money and smiling widely.

7 Ways Millennials Can Get Their Savings Back on Track

It's time to get serious about savings

Saving money from a relatively young age is a good way to set yourself up for a secure future and avoid hiccups like debt along the way. If you're a millennial whose savings plans have been thrown off course, here are a few things you can do to correct for that.

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A household budget written out on notebook paper.

1. Set up a budget

Following a budget is a good way to keep your spending in check. The result? Extra savings for you. Map out your monthly expenses using a spreadsheet or app, and then compare your spending to your earnings. Having that budget will help you determine which, if any, expense categories to slash.

ALSO READ: 3 Millennial-Focused Stocks Poised for a Bull Run

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Four people eating lunch at a restaurant.

2. Cut back on expenses

If you're aiming to save money, you'll need to spend less on something, whether it's food, travel, or transportation. Choose at least one big expense to reduce and earmark that money for savings.

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Person walking six dogs.

3. Pick up a side hustle

The great thing about getting a second job is that the money it pays you isn't money you're counting on to pay your essential bills. As such, it's feasible that you can save all of it, aside from what you owe the IRS for taxes. These days, side hustles can run the gamut from dog walking to house-sitting to web design to waiting tables. Choose a gig that'll fit best with your schedule.

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A 401k statement showing a match.

4. Automate the process

The simple act of automating your savings could help you better stay focused. You can set up an automatic transfer from your checking account to your savings account, or arrange for a portion of each paycheck to land in your employer's 401(k) plan. And if you don't have an employer-sponsored retirement plan, find an IRA with an automatic savings feature.

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Young woman sitting at table with laptop and looking at phone and smiling

5. Set attainable goals

Many people get discouraged from saving money when the going gets tough. That's why it's important to establish realistic goals. You may not manage to sock away $10,000 a year on a $40,000 salary. Figure out what's reasonable and take it from there.

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Three savings jars full of cash and labeled House, Car, and Travel.

6. Break out goals by category

Mapping out your savings goals could help you more easily stay on target. If you're saving for multiple purposes, figure out how much you need for a home down payment versus an emergency fund versus a retirement nest egg, or whatever other items are on your list.

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Two people looking over finances on laptop.

7. Have an accountability partner

Saving money is easier when you have someone to support you along the way. If you've struggled to save, get yourself a partner to team up with. That person can be a romantic partner, a co-worker, or a friend with similar goals.

ALSO READ: These 3 Robinhood Stocks Could Double Your Money in 2021

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Happy woman in glasses looking at jar of coins

Get ready to refocus

If you've strayed from your savings goals, don't beat yourself up over it -- that won't help. Instead, get yourself back into the swing of things. Meeting your savings goals will give you something to celebrate, so that alone should motivate you to forget your blunders and move forward with a positive outlook.

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