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In terms of financial management and earning opportunities, millennials appear to be the most privileged generation in history. They can now save, invest, spend, and do a lot more things that were unthinkable just a few years ago, with a few clicks or in a matter of minutes. But, on the other hand, every new financial advantage brings a new set of financial requirements that evolve through time. As a result, financial needs, particularly of the millennials, are rapidly changing.
Thanks to the easy access to investing apps, millennials’ new money-making habits aren’t confined to stock markets or cryptocurrencies. This blog discusses 7 of millennials’ new Financial Habits:
Once a week or month, have a no-spend day.
Many financial experts advise setting aside a “no spending day” to force you to reconsider your spending habits.
Once a month is a good start. It’s quite self-explanatory: don’t spend any money in a single day. It’s less about reducing overall expenditure and more about forcing you to consider where your money is going.
Make a Rs 4,000 or Rs10,000 monthly investment in the mutual funds market by setting up an automatic withdrawal.
According to traditional financial knowledge, the money you never see is much harder to spend. Set up a ₹4,000 to ₹10,000 monthly automatic withdrawal to a designated savings account and put it into a mutual fund after six months. You’ll have a lovely little nest egg in only a few years.
Day trading, stock market investment, and initial public offerings (IPOs)
are all examples of financial instruments that can be used to make money.
Thanks to lockdowns and working from home, many millennials have extra time to watch stock market trends. In addition, day trading has become a viable side income alternative for millennials thanks to easy-to-use mobile apps.
IPOs of new-age companies like Zomato and Paytm are also popular among Indian millennials. This is because they are unconcerned about the hazards associated with investing in the stock market.
Cryptocurrency investment and trading
Millennials are the lashing force behind the appeal of these new-age digital assets in India, even though they are not regulated in the country.
Crypto investments are quite popular for this age group; in fact, more than half of our crypto investors are mostly millennials.
Another reason is that Millennials are keen to learn about this new technology (Blockchain) and the new opportunities that come with it—decentralized finance (Defi), staking, liquidity pools, and non-fungible tokens (NFTs) are some of the most recent and popular options.
Financing Through Online Mediums
They understand the value of a broad portfolio that combines a long-term investing plan with double-digit returns to earn a sizable passive income. They are continuously searching for new investment alternatives due to diminishing fixed deposit yields and the volatility of equities.
For millennials looking to build and safeguard money, digital gold is fast becoming the asset of choice. Millennials seek assets that will help them meet their aspirational demands and serve as a good emergency fund in addition to the convenience of investing and higher returns.
Millennials are drawn to the simplicity and security it provides, especially in light of the pandemic because digital gold is accessible 24 hours a day, seven days a week on your smartphone. It is simple to buy and sell digital gold, but the user also eliminates intermediaries fees and resale prices. Furthermore, because digital gold allows for the purchase of tiny amounts (beginning at 1 gram), the young professional’s budget is not an issue.
‘Budget’ your savings by switching sides.
We talk about the importance of the budget all the time. Smart personal finance always starts with the budget, whether by designating envelopes with categories and inserting physical cash or using an app to track your spending in real-time.
Instead, how about setting aside some money for a savings budget? Create your accounting for monthly spending (adding 30% for future contingencies, such as a costly medical bills), and then save the difference between your income and those monthly expenses. You can set up automated withdrawals so that the money is taken out of your account before you even see it.
Millennials are confronted with a collection of issues that will only be fully appreciated in hindsight. In some ways, the New gen’s future is more unpredictable than that of any preceding generation, and its members have swiftly learned that there are few if any, absolutes. Instead, their financial success will be determined by various circumstances, including economic and political conditions, as well as their ability to overcome the sense of entitlement that much of society has imbued them with.