Research released by CommBank has revealed more than half of millennials don’t have a regular savings plan.

Despite this, the research found that millennials (a.k.a. the generation born in the 1980s to early 2000s) are keen to learn strategies to get ahead financially (54 per cent) and develop better ways to manage their money and save (53 per cent).

Living from payday to payday

The CommBank study looked at the attitudes and habits of millennials towards their personal finances, using a sample of more than 1,000 Australians aged between 24-39 years old.

While a third try to put their money into savings whenever they can, 1 in 10 admitted they are living from payday to payday.

When it comes to financial goals and achievements, the majority (58 per cent) want to buy a home, but only 28 per cent have managed to do so to date. Still, more than half say they intend to buy a home within the next five years.

Many millennials need help to save and plan

My Expert® Founder and CEO, Brett Wadelton, says the findings reflect a common theme with this age group, who recognise the importance of having a savings plan but need help to achieve this.

“There’s no doubt Australians in this age group have the desire to save more as they focus on major life goals, like buying their first home,” says Brett.

“While that might be their aim, many need help to put strategies in place to create legitimate savings and to realise this requires a concerted effort over time. It simply doesn’t happen overnight.”

It all starts with a budget

Brett says his Finance team regularly assists clients to set goals around saving a deposit to buy their first home.

“This can simply be a matter of breaking things down into what are achievable targets around payday, so that the end goal feels less overwhelming or out of reach,” he says.

“Above all, the first step is to put a budget in place. Record your expenses and find out exactly how much you’re spending and what you’re spending it on.

“From there, you can decide on priorities and identify ways you can cut your spending, make saving an automatic part of your plan and watch your savings grow from there.”

If you’re looking to buy your first home but don’t have a plan to save a deposit, talk to one of our Home Loan Experts today.

Source: CommBank report on YouGov Galaxy study, April 2021.

Disclaimer: The information provided in this blog is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information in this blog you should consider the appropriateness of the information having regard to your objectives, financial situation and needs, and it is important for you to consider these matters and to seek appropriate legal, tax and financial advice.

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