Millennials. Gen Y. The “Avocado-Toast” generation. Who exactly are we? The internet defines us as those who were born between the 1980’s and 2000’s. Also known as “Generation Rent”, we are known for being unable to manage our wealth and living hand-to-mouth. But hey, don’t let stereotypes define you — wealth management is possible, and we’ve got some tips to get you started.
Even though millennials constantly find themselves in a shortage of cash, they start earning from a younger age as compared to their previous generation. Seems a bit contradictory, doesn’t it? One would assume that the sooner they start earning, the more they’ll save at the end of the day. Well, that’s where the bigger problem lies. Saving. As your expenses increase, you find yourselves unable to save regularly. Adding to that, millennials earn less than their parents and are less well-off than they were at the same age. Again, it seems that the opposite should be true, as it was for your parents. So, why does this happen?
A slower growth in the economy and unequal access to basic necessities are some of the reasons that lead to this gap. Another reason for this is the relation between higher education and better jobs. The more educated you are, the more you earn, but that too comes with a high price. Education loans are more expensive than ever, and paying them off takes out a big chunk of your income. Throw in increasing rents and other expenses, and there’s hardly anything left to save, let alone invest.
So, how can you come out of this mess? No one wants to be broke when it’s their turn to retire and (finally) live their life without having to worry about jobs, salaries, and expenses.
This is where we come in.
- Use technology to your advantage: Millennials are said to be the most tech-savvy group, so why not take advantage of it? With an increasing dependence on technology, you can now save, invest, and do whatever you want with your money sitting right at home. But, what’s more important is learning how to do those things right. So educate yourself about how to save and where to invest to get the best returns. Here’s a link to help you get started on the basics of saving and investing.
- Choose your careers wisely: With a large percentage of millennials having graduate degrees, you can choose from a variety of well-paying jobs. By increasing your income, you not only will be able to save every month, but you can also invest and get great returns. Since millennials live longer when compared to previous generations, you have more time to figure things out and find the right job. Read on to know more about making investments and budgeting!
- Invest: Making various types of investments has never been easier. Take Niyo for example. You can invest in mutual funds with 0% commissions, and you gain access to international markets as well! All of this can be done right from your phone. So spend a little time digging into the world of investing, and make the most of it – perhaps with a simple app!
- Don’t get pulled into shady schemes: Only invest in what you trust. There are get-rich-quick or get-rich-easy schemes, but these are not effective. It’s all about making smart financial choices and saving regularly. Over time, you’ll have a steady monthly saving, which will help you in the near future when you’re making big financial decisions like buying a house.
- Have a monthly budget and save: Get organised and take charge of your finances! Prepare a budget for every month, prioritising rent, food, paying off debts, and other basic expenses. Chalk out an amount that you’ll save every month, and strictly stick to it. Saving a relatively small amount of money every month goes a long way. Plus, if you have a Savings bank account with Niyo, you get a high interest rate of 7% p.a.! Here’s a link to help you get started on building your budget.
- Keep track of your loans: Taking loans have become an inevitable part of people’s lives. We borrow from banks, friends, and families to be able to pay for education, buying houses and property, etc. Since there doesn’t seem to be a way around this, it is important to repay your loans on time, otherwise the amount just keeps increasing. Keep track of your debts, interest, and EMI’s. Here’s a link to help you plan your way out of debt!
- Plan, plan, plan: Becoming financially secure comes with good planning. Have a plan for your life which isn’t just about your career. Remember to include major aspects of your life like marriage, making real estate and other expensive purchases, starting a family, etc. Also keep in mind that financial emergencies, recessions, and windows of unemployment are all parts of life, and it is always wise to save money for rainy days.
Two steps forward and one step back is still one step forward. Start small and cut down on unnecessary splurges. You won’t have it all figured out in a day, but keep working towards achieving your financial goals.