While every generation faces economic barriers that impact their personal finances, the challenges that Millennials face are particularly unique. A Federal Reserve report investigated the financial health of this generation, defined as those born between 1981 and 1996, have doubled their assets to over $ 10 trillion in value, they also hold over $ 4 trillion in debt .
Millennials’ financial success is weighed down by more consumer debt, and the total value of their assets – such as real estate, mutual fund shares, pension rights, and private companies – is eclipsed by Generation X and Baby Boomers.
The pandemic has certainly increased the financial strain of the Millennium, especially for those struggling to repay debts, support their growing families, and save for retirement. Fortunately, there are some easy ways to save that can improve your personal finances and get you on the path to achieving your financial goals, including:
- Open a high yield savings account
- Consolidate debt
- Refinance your loans
If you are interested in exploring money-saving options to maintain your financial health, there is a wealth of information and resources on the Credible Market.
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How to save money as a millennial
1. Open a high yield savings account
A high yield savings account is different from a traditional savings account. As with any savings strategy, there are pros and cons to consider when it comes to personal finance:
- These savings accounts offer the possibility of benefiting from a significantly higher savings rate (or annual percentage return).
- Your savings of up to $ 250,000 are insured by the FDIC.
- The value of your savings will not decrease during inflation as much as the value of a traditional savings account.
- You can withdraw money from a high yield savings account more easily than other investment accounts like CDs.
- Your interest rate may be reduced once your account reaches a certain value cap.
- Some high yield savings accounts are only available online, which can make deposits and withdrawals difficult.
- You may be limited in the number of times you can withdraw money from a high yield savings account.
- There may be other savings and investment strategies available that are more profitable in the long run.
Because they are FDIC insured, generally have low fees, and offer the ability to withdraw money, a high yield savings account is often viewed as a low risk strategy for saving money. .
Why settle for the minimum savings potential of a traditional savings account when you could benefit from higher interest rates? Explore the ways you can earn more money and plan for a better financial future with Credible’s high yield savings options.
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2. Consolidate debt
If you have multiple high interest credit card debt, for example, you may want to consider a debt consolidation loan to help you pay off your total balance faster while saving on interest. Here is an overview of some advantages and disadvantages of personal loans:
- If your credit history or credit score is poor, you may not be able to get a low interest rate on your personal loan.
- Depending on the lender, you may have to pay high fees including prepayment penalties for this loan.
Explore your personal loan options by visiting Credible. You can talk to loan officers, compare rates, and find the lender who will meet your financial goals.
Before contacting a lender, it is important that you know how much you will need for your personal loan. You can instantly determine how much you need to borrow using free online resources like Credible’s personal loan calculator.
Once you have calculated the amount you need to borrow responsibly, you can instantly find the best personal loan rates in the Credible market.
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3. Refinance your loans
With student loan refinancing rates continuing to hit record lows, now is a great time to refinance your private student loans. Refinancing can help you pay off student loan debt faster by securing a lower interest rate, removing a co-signer from your loan, and potentially removing origination fees on the new loan.
Use an online tool like Credible to display an easy-to-read table that compares the rates of multiple lenders at once. By using an online student loan refinance calculator, you can instantly get an idea of what your new monthly payments would be.
Along with private student loans, national mortgage rates are also close to record highs. Refinancing your mortgage now could lower your interest rate, shorten your loan term, and ultimately save you thousands of dollars over the life of the loan.
Visit an online marketplace like Credible to view refinance rates and determine if this is a route to financial success that you want to explore. You can also use an online mortgage refinance calculator to determine your new monthly costs.
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