Money is a feminist issue — and yet, women are still reluctant to talk about it. According to a recent Bustle survey of more than 1,000 Millennial women, more than 50 percent of people said they never discuss personal finances with friends, even though 28 percent reported feeling stressed out about money every single day. Bustle's Get Money series gets real about what Millennial women are doing with their money, and why — because managing your finances should feel empowering, not intimidating.
Saving money is tough, and you may often wonder if you're saving enough or even how much Millennials save every month typically. After all, some people have more to save than others but, at the end of the day, it's all about budgeting and doing the right things with your money, no matter how much you make. "It's not the most fun advice, but the only way to save money is to live below your means," Mike Katchen, founder and CEO of Wealthsimple, tells Bustle. “Make a budget and include savings in it as a non-negotiable expense — just like your rent and your electricity bill. "Your best friend when you're getting into the habit of saving is automation: having an amount deposited to your savings or investment account weekly or monthly means it just happens. You don't get to convince yourself you'll contribute extra next month because you had to chip in for that birthday dinner this month."
Sound familiar? I know I can relate. Plus, with all the budgeting apps out there, there are plenty of ways to keep your budget in check. But how much is enough as a safety net? "You'll want to build up three-to-six months of expenses in a 'rainy-day fund,' then divert those regular deposits to an investment account," Katchen says. "There are lots of options when it comes to investing."
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As you can see above, there are various ways Millennial women save money. However, you probably also noticed some common themes — having 401(k)s, Roth IRAs, and sticking to a budget, for instance. No matter how you save, the key is: Do it. "Remember to pay yourself first," Brianna McGurran, student loans and personal finance expert at NerdWallet, tells Bustle. "First, you should decide on a reasonable amount that you would like to save each month, then set up an automatic transfer so it goes straight to your savings account. Then, commit to living off the remaining amount of your paycheck versus planning to roll over your savings at the end of the month. That way, your savings are out of sight and stay untouched until you actually need them. You can also set up a savings account at a bank that is different from where you do your checking. Then, you're not tempted to transfer money back to your checking for random expenses or that pair of shoes you've been eyeing." Quick aside: I actually do that savings-account-at-a-different-bank trick, and it does work!
Especially with all the budgeting apps, money blogs, and finance experts out there, it is possible to find ways to save money, even if you're not raking in tons of it. Speaking of budgeting, I'm now inspired by the above and am going to go reevaluate mine.