“Young people often know they can count on their parents to get them out of trouble, so they mistakenly think they do not need to save money,” she explained. “I think it’s due to the impulsivity and invincibility inherent in 20’s. Young people have trouble imagining when they will be too old to work, or where they will need money to buy a home. Their days are passing at an alarming speed, and their economies are stagnating. ”
How to avoid unnecessary expenses
Since I did not know my spending habits at all, I downloaded an application called Digit. From time to time, the program monitors your bank account, calculates the money that is likely to stay there, and determines what your unnecessary expenses are.
Digit takes money from your account according to your expenses. This means that the more I prevent myself from spending, the more I see my savings increase. I know that an average American spends more than $ 1,000 a year in coffee, I try to drink the sock juice that comes out of the coffee machine in my office. I needed to know where I was spending my money to adjust on.
To do this, I grabbed another app, Mint, which reviews each of the items you buy, places them in a category and tells you where your money ends.
Mint manages your budget by recording your expenses and trying to reduce them by 20%.
In the United States, withdrawal fees reached a record average of $ 52 per transaction – 20% more than five years ago. One of the first things I noticed when I used Mint was how much money I was slamming in there.
Since the end of June, I have spent more than $ 65 just by withdrawing money. It’s genuinely annoying and hard for me to living on a budget because it means I’m spending $ 150 a year to get my money. I live in New York, and most traders insist on being paid in cash – knowing that my bank is 20 minutes from my apartment, I always go to the nearest distributor.
My solution was to change banks to go and buy Charles Schwab, a company without physical buildings – which can be a concern if you need to see a banker for some reason, as it can all happen to us. The advantage is that they take care of paying your withdrawal fees.
Benson also told me that people my age spent a lot of money on eating out or on transportation. I know that every time I go to lunch I spend an average of $ 10 a day – $ 50 a week to save money. To alleviate this problem, I used the services of Blue Apron – for $ 60 a week, you get all the food you need to eat three meals for two people of average size (which is nine meals for me). Alone). I do not spend anything on food unless I go out late at night. This service covers all my lunches and prevents me from shopping. If you are a little less immature than me, you can just as well make you eat at night to take a Tupperware lunch.