Young Workers Are Wise Savers Despite Some of Their Splurges, Here’s What You Must Know

Millennials have oftentimes been wrongly branded as careless because of the devil-may-care mindset they supposedly have. Other generations would shame the young professionals for their vacations and splurges that may seem unreasonable for them but are certainly worth it for others.

Older ones tend to shame them, scolding them about their spending habits. However, has anyone really ever praised them for their aggressive saving practices?

It sucks to be called names just because you opt to have a streaming service subscription, after all, not all people who pay monthly for Netflix or Hulu end up wasting all their salary.

In fact, people shouldn’t easily judge at all by what they see, just take a look at the poll conducted by Principal Financial Group wherein half of what’s called “Super Savers” end up nearly maxing out their 401(k) last year – they spent $18,500 for the contributions, while still enjoying themselves binge-watching through their favorite platforms. This is why it pays to know how to put balance in between.

Traveling Within Reason

Other people would argue that experience is priceless yet expensive. In some area, this is true: traveling may come with a hefty price tag but what you will get in return is not something that can be sold nor forgotten. However, you shouldn’t blow your savings through the roof just to cross everything off your bucket list when you’re still far from having a comfortable retirement.

You can still travel near home

The poll revealed that 40 percent of respondents said they don’t travel despite wanting to, but, half of the super savers deem traveling as a treat. They may have found a way to still travel and not spend thousands of dollar: staying close to home. After all, there are many scenic places near you that are worth exploring.

Managing Expenses

Many Americans are sticking with their cars rather than buying a new one

Who wouldn’t want a nice car to get to work? But for super savers, they are smart in avoiding shelling out about $37,000 – the average cost of a vehicle nowadays – for a ride. Four out of 10 of the respondents said they are using an older model just to save more, which makes sense. More and more Americans are choosing to stick with their cars for a longer period with an average of 11.8 years, the IHS Markit said.

Investing

Warren Buffett, one of the most successful investors in the world, started investing at 11. But, don’t fret just yet, you’re never too old to start. For young workers, they have time at their side. According to Principal, those who are close to maxing out their retirement account started contributing in their 20s. Seven percent of the aggressive savers began saving money between 13 to 19, the poll revealed.

Tracking Developments

Many young workers track their progress

You won’t really know if you have reached your goal unless you track your progress. Almost 2 out of 3 super savers resort to online tools to check their retirement savings goal. It pays to know where you are at your goal because it will help you feel motivated about saving a portion of your money.