India – the largest young and vibrant economy – boasts of a significant GenZ as well as millennial population. And, they are placing greater emphasis on spending rather than saving (an unlikely Indian behaviour), as today they have easy access to affordable retail credit for desirable spends and varied online shopping options. However, once this become a pattern, reliable money management should be a tool that millennials would like to explore.
For the youth who are India’s future, here’s a guide to save money and invest in their future:
Track Expenses
Millennials view money as disposable and prefer to utilise it which could result in a paycheck-to-paycheck existence before they even realise it. Understanding expenditure trends, therefore, is the logical first step towards developing wise saving practises. And a smart tip for the tech-savvy youth is – Use expense tracker apps. Work on monitoring and reducing wasteful spending using apps that make it easier to group costs into categories like leisure, shopping, and eating. Apps also schedule reminders for bill payments and help in splitting and paying bills while dining out, on vacation, etc.
Easy Repayable Spends
Avoid credit card use too much while considering its usage for easy repayable costs, such as café meet up or a small dinner or other spends that can be paid back within interest-free period. This will help in maintaining a healthy credit score and credit worthiness.
Also Read: Rising rates? Here’s how your credit score can help you get cheaper home loans
Set up an emergency fund
A suitable amount of money must be available to achieve objectives like buying a new automobile, wedding, or remodelling home or even health emergency. These objectives might encourage you to practise better saving. The requirement for an emergency fund, however, is something that is frequently forgotten when it comes to saving.
Banking on Insurance
Nowadays, buying insurance is an essential need since it offers financial protection against any life crisis or mishaps. Youngsters must always keep in mind of having a safety net for their finances by choosing fundamental insurance policies such as company group health insurance or individual health cover, accidental, life insurance et al.
Make some lifestyle changes
Millennial and GenZs hooked to smartphones, social media and the digital life have different lifestyle priorities and way of life. The new way of digital life, if managed wisely, can result in good savings and keeping a balance on screentime. For example, with innumerable OTT platforms out there, one can manage their subscription by choosing 1-2 platforms for yearly subscription and rest can be taken for a 3-month tenure. This would lead to good savings.
In a nutshell
Saving money is a crucial life skill to imbibe at any age and if started early, it can be beneficial for all. Financial discipline is important so that you have complete control of your money and not the other way around.
(By Afreen Ali, AVP – Marketing Communications, Home Credit India)
