Millennials—people born between 1980 and 2000. People whose traits are positive—they are earnest, positive, seek new experiences, and display a high level of social consciousness. They have expectations from life (positive ones), they work and strive for the best, they use technology, they crave for work-life balance and give a lot of attention to new experiences in life. Millenials are go-getters, hard-working, they are careful about their spending and saving. They are also known to handle responsibilities better, take challenges as opportunities and face competition which otherwise their previous generations haven’t had to face so intensely. Our Millennials are pretty thrifty when it comes to saving money and they know exactly where to spend that. Let’s find out how financial planning for millennials can help them for a better and secured life ahead.
Saving to see ‘The World’
Travel is a wonderful thing. It broadens your horizon. It helps you get a better perspective. It takes you out of your routine life and what not! Millenials, the generation of go-getters are the ones who soulfully believe in this concept and totally live for this. For Millennials traveling matters more than anything. The backpacking trip to Indonesia, biking trip to Ladakh, solo trip to Canada would have been unthinkable choices for the Generation-Xers. But for Millennials the bucket list is getting bigger and better with each passing year. So it’s quite natural that saving for travel is a priority for millennials. And thanks to the economy that has made travel a cheaper and more flexible affair, the love for traveling among Millennials is only growing. They would rather take regular holidays than save for a home or car. Their motto lies in Saving, Exploring, Getting Amazed, and Repeating the same.
Saving to buy more experiences
Millennials tend to define themselves by their experiences more so than other qualities or factors. And it’s not just travel or adventure sports or cultural experiences that they are addicted to. In fact, they value all sorts of experiences—live performances, sporting events, concerts, social events, food fairs, photography and the list goes on. More than aiming to spend on possessions, they love saving for varied experiences of life. They aren’t spending our money on cars, TVs, and watches. In fact, they are renting scooters and touring Goa, rocking out at music festivals, or taking part in Marathons. So after aiming to tour in maximum cities or countries, saving for experiences comes as a high priority for them.
Saving to take better care of themselves
Although open to new experiences in life, Millennials avoid getting addicted to things that seem to harm their body in more ways than one. Millennials are, by and large, eating more healthily than any previous generation. They eat more ethically and are aware of what’s served on the platter. They are also more likely to take part in healthy behaviors (social media influence for good), such as exercising regularly and maintaining a healthy weight. For millennials, value and product quality are important too and they favor things that are natural and organic (from food to cosmetics). So, it’s an obvious thing that they save up to invest in taking better care of themselves. Plus staying healthy helps them save a lot more too.
Saving to maintain the same lifestyle post retirement
The ability to maintain a similar lifestyle in retirement in a satisfying and fulfilling way is one of the biggest concerns for millennials. The key to achieving financial comfort in retirement is to have a clear understanding of the financial resources and the demands on these resources both now and in the future. It is kind of given that Millennials do understand the importance of retirement planning and getting an early start on building retirement security. Many surveys have also shown that when searching for a job, they look out for retirement benefits or make sure to save a certain percentage of their salary in PF accounts.
Additionally, it has been found that millennials purchase their first mutual funds at a younger age compared to their earlier generation. Millennials are still in their prime years to start investing, so you can expect this number to rise at a faster rate than older generations that should have been saving for decades already.
Team SBS Fin is working constantly to help you plan finances better and to help the millennials with setting financial goals as per their bucket lists. Wondering about your travel wish-list?? Feel free to write us on firstname.lastname@example.org.