Think Millennials…. and we are describing a generation born between 1981-1996, which is have one problem to deal with – ‘savings’, while being loaded with debts, and perhaps needs some insight to ‘investing’.
This is backed with a survey that indicates how the meaning of creating ‘wealth’ and owning ‘savings habits’ across generations that practiced financial planning has changed , while learning to manage money and future life’s goals through sound investment strategies requiring framing a road map to include the following –
1] Financial planning and goal setting
2] Saving & Investing
3] Tracking spends and shopping behavior
4] Planning with confidence.
There is an ancient proverb – ‘when you write a plan or a goal, the universe joins the dots to make it succeed’…. For those who have written down a financial plan, chances are they have already met the right set of advisors, investment opportunities and even ‘financial planners’ who helped them in reaching their financial goals.
The Modern Wealth Index (2018) scores millions of millennial based on their habits of savings and investments between 1-100 percentile.
|Modern Wealth Index||Those who Plan regularly||Still not decided||Rest of the Universe|
|Average Modern Wealth Index score||68||44||50|
|Have Bills to Pay and Yet Save||75%||33%||43%|
|Must own Funds for Emergency?||65%||24%||35%|
|Still Thinking of Life Insurance?||62%||39%||45%|
|Feeling financially stable||62%||32%||40%|
|Need to pay credit card outstanding’s and other loan payments on time, or have no debt||42%||26%||30%|
|Living on a month to month basis||38%||68%||60%|
So, what does mean, Financial Planning is like fixing an Exercise regimen, where hitting the gym gets us into shape, the former helps in achieving a goal. Both need the same approach – ‘Discipline and Rigorous Commitment’.
Statistics prove that 31% of Millennial are learning and determined to save as opposed the previous generations but let’s pause, and check their ‘savings priority’ and life’s challenges.Well three out every four millennial are drowned in debt -age group is [18 to 34 years]. See the figure below.
Credit Card Debts – are the highest prevailing burden within the group . 56% of Millennial with College Degrees as compared to 40% who don’t possess a College Degree, while two in every 10 millennial have a home loan or some sort of an emergency debt/ student loan..
Now let’s pause around and ask these questions to ourselves
Eventually it’s all about choices, when pursing our dreams and goals in this lifetime. Now ask yourself, what are the top two most important goals you would like to accomplish before completing the age of 30?…
Dr. Raman Subramanian
Westford University College