Fast-changing lifestyles, technological advancements and economic growth have shaped millennials' views and traits which have also impacted their outlook on financial planning.
One such trait is the need to indulge in the moment which motivates them to work hard and party even harder ensuring that they live their life to the fullest. Millennials are also very conscious about their appearance and this coupled with their urge to be the best version of themselves motivates them to invest money and time in continuous self-improvement.
In this day and age, due to the gamut of avenues to spend and their need for instant gratification millennials often end up doing the opposite of a famous saying-'Do not save what is left after spending; instead, spend what is left after saving'.
First, let us understand, why do people save money? The answer to this question varies from person to person. However, the intrinsic motivation for most people to save is to progress in life and enjoy greater security. Other important reasons why people save are:
— For the future of their children-Savings for their children's higher education and marriage
— To upgrade or maintain their lifestyle-Buy a house, buy a car, travel abroad or to purchase expensive gadgets
— To plan for a comfortable life after retirement
— To handle financial emergencies or unforeseen expenses like accidents, loss of livelihood, etc.
However, millennials live through experiences that can be seen in their love for food, music, fashion, etc., and thus they prefer to design their investments so that they do not miss out of every experience in life, be it big or small.
Ways millennials can save
Keeping the larger picture in mind, millennials need to ensure a certain level of savings to be ready for the future financial emergencies and the key milestones that they have set for themselves.
Millennials are also providers with an upgrader mindset which shapes their parenting style and keeps them motivated to provide a better lifestyle for their loved ones. They have goals like world tours, children's education or an enhanced lifestyle. Therefore, when the millennial goals are so different, so should the financial plan catering to these goals.
Hence the ideal product for millennials is one which not only protects the money from unforeseen events but also provides growth of money.
Source: Tax Guru