Many things have been said about millennials. When it comes to owning an apartment, how do millennials think and act? If you belong to this generation, then getting an apartment, and paying for it, is a good test to see how good you are in handling your money.

How good are millennials in budgeting their money to keep and pay for their apartments? When it comes to financial literacy, millennials are not exactly hitting the mark. Here are some of the most common mistakes that millennial renters make regarding money.

5 Most Common Money Mistakes Millennial Renters Commit

  1. Spending on unnecessary things.

Face it, having your own money is thrilling. You get to spend for things that are otherwise not affordable to you when you were not earning. You spend incessantly on gadgets, clothes, makeup, travels, expensive food, and other things that you think you can’t live without. Then comes the time to pay rent, and you learn that you have barely enough money to survive the entire month.

Paying your own rent means you need to regulate how you spend your money. One question to ask yourself: can you live without the item you are about to purchase? If the answer is yes, then you probably don’t need to buy it anyway.

  1. Not saving

Most millennials do not have extra money on their bank account. Excuses like not earning high enough or having too much payables are common reasons why it’s hard for millennials to make a saving goal and stick to it. However, having a saving goal and working towards it can instill discipline and self-control. You can also feel more secure and safer knowing that whatever happens, you have some cash to pull out.

  1. Not investing

Millennial renters always complain about not having enough cash. This stems from the very problem that they do not know how to handle their money properly to ensure that they end up with money and savings in the future. Through smart investment, you have a longer time to watch your money grow.

  1. Using credit cards too often

Not tracking how much you are spending with your credit card is like setting yourself up for a disaster. Spending way more than you can pay is easy with just a swipe of a card. Avoid being buried in debt by tracking your credit card purchases and paying your dues on time.

  1. Not planning your budget and sticking to it.

A monthly budget can help you keep track on what to spend on each month. Millennial renters often forget to factor in that they are spending more than when they used to live with their parents. Having your own money and managing it will be a daunting task if you don’t plan your budget.

Renting your own apartment is a fun and exciting time in a young adult’s life. However, avoid making these millennial renter’s mistakes to make sure that you don’t rush back home because you ran out of money. Make your parents and yourself proud by making a conscious effort to avoid the above mistakes. Good luck!

The Lofts of Columbia offers upscale downtown Columbia apartments.