We spend a lot of time disparaging millennials. I know that, as a “mature” and “thoughtful” member of Gen X, sometimes I shake my head at members of Gen Y. However, just because we give millennials a hard time it doesn’t mean that we can’t learn something from them. In fact, according to David R. Smith, with Kaiku Finance, millennial strategies for spending less every day can benefit the rest of us.
Creative Cost of Living
Cost of living can be one of the biggest drains on your finances. If you want cheaper living, you can employ some of the strategies that Smith says millennials focus on. “They create and share life hacks to lower their utility bills, stretch their grocery budgets, and more,” he says.
These life hacks might be seemingly small changes to living, such as getting a programmable thermostat or using online coupons to save on groceries, in order to watch the small savings add up to bigger savings over time. Many millennials are more aware of how their actions can lead to greater costs, and are willing to make changes to their lifestyles in order to reduce the cost of living.
“Millennials are also more likely to be renters who use public and alternative transportation, such as bikes, to avoid the burdens of mortgages and high car payments,” Smith says. Being able to look around the community and look for alternatives to high-cost modes of transportation, as well as getting creative with housing costs by living with roommates or taking on lodgers, can be ways to reduce your cost of living.
How Much Stuff Do You Need?
One of the things that Smith points out that really resonates with me is the idea that many in Gen Y aren’t as interested in stuff as some of those of us in previous generations. “Millennials tend to value community, simplicity, and experiences above work and material possessions,” he says.
To some extent, I can see how that can help you reduce your expenses every day. If you aren’t worried about how much stuff you have, you tend to spend less on things (saving money), and you don’t need large living spaces. Since downsizing to an apartment, I’ve seen this in my own life. We don’t need to spend as much money on taking care of our stuff, and we are also fortunate in that our new location offers us easy and inexpensive access to a number of cultural experiences. There’s a lot to see and do, and we don’t need to spend as much to be entertained.
The millennial strategies of living with a little more simplicity and relying more on alternative transport and arrangements can make a lot of sense for the rest of us. While I still think it’s a good idea to cultivate a regular source of income and work hard for it, I can see the value in a situation that allows you to choose your hours (after all, I’m a freelancer working from home).
What other lessons can we learn from millennials?
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