6 Reasons Why Millennials Can’t Save Money, Are You One of Them?

The millennials who were born in 1981-1996 are now all entering their productive age. However, the millennials are often referred to as the generation that finds it difficult to save money. This is also confirmed by research from Luno and Dahlia Research which reveals that 69% of the 7.000 millennials do not save regularly! What makes it hard for millennials to save money? Let's identify the causes, so you can improve yourself and start saving regularly.

Always Want the Best New Things
Millennials’ tendency to get easily bored and always want to follow the latest trends is the first reason why millennials are known to rarely save money. For example, the latest smartphones which are usually released annually by a number of brands always packed with busy millennials waiting in line to buy them. The price of the latest smartphone is not cheap, you know!

So, if you are one of the millennials who like to replace old items with the newest ones, try asking yourself first. Is your old item damaged and must be replaced? Are there any needs that haven't been met by your old stuff? If you are still unsure about answering these two questions, you should postpone the purchase and save money for other needs.

Impulse Buying
Discounts and cashback? Yes, please! This is millennials’ biggest weakness. It's hard for them to save money because they can’t refuse a discount offer. Yes, discounts or cashback can help reduce your expenses, as long as you buy items that you really need. It's a different case when you weren't previously interested in buying the item but were tempted by a discount.

"Wow, it's so cheap, why not just buy it?" This thought must have crossed your mind. Calm down and let's introspect. Avoid buyer's remorse, regret for buying expensive items that are not really needed. Make sure the expenses do not exceed your budget.

“You Only Live Once” State of Mind
Most millennials often say "you only live once (YOLO)" every time they’re doing something impulsive. It’s true; life should be enjoyed without regrets. However, what happens if you waste money after receiving your salary, and then live in poverty near the end of the month? If you always run out of money and are unable to save, that means you don't have control over your future!

This will instead bring you to the pleasure of a moment, where later when you get older, you will bear a heavy financial burden. It's okay to indulge yourself occasionally, but do it after you have set aside money for all your bills and savings.

Stagnant Salary
Do you feel that your expenses continue to increase while your salary stays the same? You are not alone, this is a phenomenon experienced by many millennials which makes it even harder for them to save money. Sometimes, just reducing expenses is not enough.

You can try to increase your income by applying for a promotion or opening a side business. Align your side business with your hobbies or abilities. For example, if you are good at writing, you can try to become a freelance writer on the weekends. For those who like to cook, you can open a catering business on Instagram.

Mountains of Debts
Due to excessive spending, it is not uncommon for millennials to use credit cards or loans to meet their primary needs, even secondary and tertiary needs. The problem is when you are late in paying this debt.

When it comes to that, the installments will grow larger and without you knowing it, the debts will accumulate. If you have this, you should prioritize yourself to pay off all debts you have before adding large expenses.

Confused About How to Manage Finances
Unfortunately, there are still many millennials who are financially illiterate. In some cases, millennials tend to not schedule their routine expenses, such as electricity and internet bills, resulting in late payments and penalties. Not to mention, many of them have only one saving account and do not have insurance.

What are the side effects? Millennials find it difficult to save money because their monthly salary is always used up. The solution is, set the budget at the beginning of the month as soon as you receive your salary. Assign expenditure items as needed. Then, set aside at least 10%-30% of the money for savings.

So, for those of you who have trouble saving money, just open PermataME right now. PermataME is a savings account that is suitable for young people. With PermataME, you can enjoy 10% cashback for every online transportation transaction, 20% cashback for online shopping, and 30% cashback for coffee and movie theater transactions. Even though you regularly save money, you can still have a modern lifestyle, you know? PermataME can also be opened online via the PermataMobile X mobile banking application. So, you don't have to bother coming to the bank.

With the #CantStopME campaign, PermataBank offers various banking products suitable for millennials, from savings, credit cards, mortgage, KTA, to investment. Check the full info here.