1 in 5 Millennials Has $0 in Savings — and That’s a Big Problem

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A $0 savings balance could really hurt you when an unplanned bill strikes. 

Building savings isn’t always an easy thing to do. In fact, it’s often quite difficult.

But it’s important to have money in a savings account for unplanned expenses. If you don’t have a solid emergency fund, and you’re hit with an unexpected bill you can’t put off, like a home or car repair, you might instantly be forced to rack up credit card debt to cover it.

Credit card debt can be really bad news. Not only can it cost you a lot of money in interest, but it could also leave you vulnerable to credit score damage. And the lower your credit score, the harder it becomes to not only borrow money when you need to, but also, do things like rent an apartment.

Meanwhile, a recent survey by Real Estate Witch found that roughly 20% of millennials have no money in savings whatsoever. If that’s the boat you’re in, make these important moves soon to build yourself some sort of financial safety net.

1. Get on a tight budget

Not having savings is a dangerous thing. If your savings account balance is sitting at $0, it’s time to take control of your spending and find ways to cut back on expenses. And getting onto a budget is a good way to go about that.

Your budget doesn’t have to be anything fancy. You can write yours down on paper or use a spreadsheet to map out your bills. You could also try using a budgeting app. Many of these apps will assign your purchases to different spending categories so you’re able to keep track of them easily.

But either way, the point is to see where your money goes month after month, and then do your best to bank more of it. That could mean canceling expenses like streaming services, subscription boxes, and your gym membership. It could even mean doing things like getting a roommate to split the rent with — despite the hit to your privacy that might ensue.

2. Pick up a side hustle

If you’re already living pretty frugally, cutting back on expenses may not be all that feasible or reasonable. But in that case, a second job could be your ticket to building up a savings balance.

Explore your options for working a side hustle that will earn you a nice amount of money. If you’re great with kids, you could look into babysitting or tutoring. If you love animals, be a dog-walker or pet-sit in your home for people who need to go away. You can even revert to work-from-home jobs like data entry if they do the trick of putting more money in your pocket so you can put some cash in the bank.

Going without savings leaves you vulnerable to debt, and that’s really not something you want. Rather than run that risk, make an effort to build your savings. It may take some time, but any balance you accumulate will be far better than a balance of $0.

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