5 Ways Millennials Can Save $10K or More This Year
Thrifty millennials have a reputation for being pretty good at saving money, at least compared with other generations. A recent survey from MarketWatch Guides found that on average, millennials save the most every month at $535.50. That puts them well ahead of Gen Z ($489.20), baby boomers ($406) and Gen X ($400.60) — impressive, considering that many millennials are entering an age when they face major expenses such as home purchases and new families.
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A separate study from New York Life found that millennials led the pack in terms of building wealth in 2023, saving an average of $9,299.45 for the year — well above the average of $6,138.06 for all adults. Gen Zers saved an average of $6,440.67, followed by Gen Xers ($5,132.20) and boomers ($4,059.72).
None of the generations hit an average of $10,000 last year, though millennials came the closest, falling short by about $700. Based on that, they need to save an extra $58 a month to reach $10k in 2024.
Here are five ways millennials can save $10,000 or more this year.
Create a Path to $10,000
To hit your $10,000 goal, you should break down how much you need to save each month and budget accordingly. In this case, you’ll need to set aside $833.33 a month. If that seems daunting, then break it down even further by telling yourself you only need to save $192.31 a week or $27.32 a day (based on the 2024 leap year). If you have fallen behind so far in 2024, figure out major expenses you can reduce to help you catch up.
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Reduce Spending on Non-Essentials
Because millennials are in a stage of life when overall costs go up, the best way they can free up more money for savings is to cut back on things they might want but don’t really need. This typically means dining out less, shaving your entertainment budget, cancelling subscriptions and memberships you don’t use and resisting the urge to make impulse purchases.
Open a High-Yield Savings Account
If you haven’t done so already, you should take advantage of today’s high interest rates by opening a high-yield savings account. The best high-yield savings accounts offer annual percentage yields of 5.0% and higher — more than 11 times the average savings rate of 0.45%, according to the latest FDIC data. Depending on your balance, moving from a standard savings account to a high-yield one can boost your 2024 savings by hundreds of dollars.
Automate Your Savings
Another way to help save $10,000 this year is to set up automatic transfers into your savings account each month. This ensures that your balance grows on a regular basis without you having to remember to make manual transfers. Most banks let you set up automatic transfers with only a few clicks of the mouse.
Earn Extra Money
If you’ve already cut as much as you can from your budget, then the next solution is to earn more money to put toward savings. Part-time jobs and side hustles can boost your monthly income in a hurry and put you back on track to save $10,000.
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