When scanning the news headlines, I’ve noticed a common trend: people really like to bash Millennials. Recently, the topic of discussion has been none other than… avocado toast. Wait, what? You heard me—the recent lament of economists has been that Millennials are spending too much money on unimportant items, specifically avocado toast, and not on homes, cars, or savings. If you feel personally attacked when reading headlines like that, or if you think you could use some expense cutting tips, then this article is for you. Here’s a few tips to reduce unneeded expenses:
1. Check yourself before you wreck yourself: Even if you’ve never heard the words ‘avocado toast,’ I encourage you to try this. Pull together your checking and credit card statements for the last 6 months, and grab some paper or make a spreadsheet. List out any recurring expenses that you might be able to cut. Also list out any expenses that seem high that you might be able to reduce. Be honest with yourself here—no self-shaming allowed, simply be realistic. Do you really need that $6 coffee every morning when you have a coffeemaker at home? Do you really need a new dress for every function you attend? How much do you really use your Netflix, Hulu, or Amazon Prime memberships? Be critical of where your money is going.
2. Follow through: After doing this, it’s really easy to walk away feeling satisfied without making any real changes. In doing so, you’ve just wasted an hour and you’ve saved exactly zero dollars. If you take the time to dig through your expenses, you might as well save some money too! Once you’ve identified your unnecessary expenses, make a plan to cut them. We asked some families to do this, and here were some of their responses:
3. Reallocate: Old habits die hard. Instead of simply saying, “Great, I have more cash! Let’s go buy more iced lattes with my free money,” find a place to put the extra cash. Calculate how much you’re saving annually by cutting your unnecessary expenses, and set a goal to save or invest that money by setting something up monthly that is automated. It could contribute to retirement, a second home, or a child’s education. If you have no immediate savings goals, you could also consider donating it to charity. It will be much easier to change your habits and stick to your savings if you have a clear goal in mind.
United Capital Financial Advisers, LLC (United Capital) provides financial guidance and makes recommendations based on the specific needs and circumstances of each client. For clients with managed accounts, United Capital has discretionary authority over investment decisions. Investing involves risk and clients should carefully consider their own investment objectives and never rely on any single chart, graph or marketing piece to make decisions. The information contained in this blog is intended for information only, is not a recommendation, and should not be considered investment advice. Please contact your financial adviser with questions about your specific needs and circumstances. This blog is a sponsored blog created or supported by United Capital and its employees, organization or group of organizations. This blog does not accept any form of advertising, sponsorship, or paid insertions. Certain authors of our blog posts may be influenced by their background, occupation, religion, political affiliation or experience. It is important to note that the views and opinions expressed on this blog are that of the owner, and not necessarily United Capital Financial Advisers. As a Registered Investment Adviser, United Capital does not allow any testimonials on their blog, and any comments deemed as such United Capital will remove.
United Capital does not offer tax or legal advice; therefore all articles should not be taken as such. Please consult legal or tax professionals for specific information regarding your individual situation. All referenced entities in this site are separate and unrelated to United Capital. Any references to any specific commercial product, process, or service, or the use of any trade, firm or corporation name is for the information and convenience of the public, and does not constitute endorsement, recommendation, or favoring by United Capital.