Millennials, is a term we hear often. But, which category do they fall in? Well! They fall in the age group of 26 to 41. They are fondly known as the happening group, the tax-paying group, the hard-working group, the hustling group, and the group of young people who contribute maximum to the GDP.
Having been this most influential group, they sure call the shots on the spending trends.
Although they’re known to be the most hard-working group, they have been lucky in many areas as well. With the whole society, in general, seeing a steep economic rise, the conventional expectancy of the new adult taking on the financial responsibility of the family is far less, expectations are for them to be more self-reliant.
This paves way for the focus being only on themselves; having no past financial commitments the emphasis is more on the present. Their idea of investments has undergone a sea of change. As their attitude is more hedonistic for they believe in living for the here and now.
2. With the arrival of cashless payments, millennials have quicker access to cash. With UPI, online payments, Buy Now pay later apps- money is easily accessible. This is where the millennial needs to be cautious. The depletion of money is not felt and could result in their spending going over the budget as well.
3. The financially savvy millennial is aware of this newfound access to money. Financial budgeting becomes crucial to help them manage their finances better. Here’s the age-old rule on budgeting we advocate.
The rule is to divide your after-tax money and allocate it rightly between spends, wants and savings. The spend should ideally be 50% of your salary, 30% of it should be on wants and 20% on your savings like contributing towards a registered chit fund like myPaisaa.
Life should be enjoyed, but having a plan and sticking to it will allow you to cover your expenses, save for future needs and emergencies and also do all the things that make you happy without any apprehension or regrets.