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Everything is expensive these days, there’s no doubt about it. However, the younger generation is bearing a significant brunt of the “financial storm” we’re facing today. The costs of higher education and housing have skyrocketed, and inflation is taking a large bite out of the average Gen Zer’s budget.
In fact, 82% of Generation Z admits that they aren’t where they want to be financially, according to Synchrony Bank. Luckily, there are a variety of tips that will help lower-income Gen Zers to save money and get ahead.
1. Increase Your Financial Literacy
Many young adults haven’t received the financial education necessary to really get ahead. Fortunately, you can change that. Consider doing extensive research on financial topics and watching YouTube videos from financial experts. All of these methods don’t cost any money and can make a real difference in how you cut costs and grow your wealth. As they say, knowledge is power.
2. Create a Budget That Works for You
An easy way to get started is by building out a simple budget that considers your total income and all your expenses. Then, divide your expenses into the following categories: needs, wants and savings. Once you visualize all of the expenses, it’s easier to prioritize your needs and your savings first and your wants second (if you have any money left).
3. Set Clear Financial Goals
Setting and focusing on clear financial goals can help you save more money, even if it’s small amounts at a time. For example, you can set a specific date to save up the necessary down payment for a new car or a family vacation. Once you know approximately how much you’ll need, you can start putting money away each month in accordance with your financial goal timeline.
4. Destroy Your Debt
Debt eats away at your money and creates a drain on your finances. Credit card debt, for example, typically carries higher interest rates and can be detrimental to your ability to save money.
So, be sure to prioritize killing your debt first before allocating money to savings.
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Source: 4 Tips To Help Gen Z Save Money While Making Less Than $30K
