Millennials, the demographic cohort that makes up 34% of the country’s population, have had a ringside view of the world’s digital transformation. Their needs have expanded to fit their here-and-now approach to life, and so have the means to satiate those needs. Whether it’s a mundane task or a significant life decision, convenience comes as second nature to them. While the world may be at their feet (or fingertips), there’s no denying that it has also led to an information overload in all aspects of life today, including personal finance decisions.
Financial literacy has become more important than ever, all thanks to the uncertain times imposed upon us by the pandemic. But it’s equally important to be able to cut through the clutter and make informed navigation through financial planning. FinTech has certainly helped make finance more accessible and also relatable for the Millennials today. There are several funds aimed to provide millennial investors with the right launchpad into the world of wealth creation. Let’s take a closer look at how Millennials can go about their personal finance planning.
An early headstart to maximise returns
The rule of thumb to gain maximum returns on one’s investments is to start early. This is the smartest way to grow your savings and attain a sizeable corpus to meet your life’s milestones. Millennials have the time factor on their side that they should leverage and get an early headstart on their investments. Inflation is soaring at a brutal pace and currently clocked a 17-month high at 6.95% last month. Your child’s higher education might seem far off, but add another 20 years to this hike and factor in education inflation which stands at 11-12% right now, you’ll need at least Rs 1 crore to afford the college fee.
Therefore, every day that you delay translates to this cost going up and a loss of returns. The financial sector has taken cognizance of the need to make investment simpler and more relatable for Millennials now. Even if you set aside Rs 10,000 every month for investment, you will be able to achieve your financial goals over time. In fact, whether or not you have a family right now, you should know that you can start investing for your child as soon as he or she turns three months old. Besides this, investing early for yourself will also pay you off in your old age, eliminating the need for dependency on anyone.
The growing need for a resilient financial strategy
Millennials love to live in the moment. However, the stress of the modern-day lifestyle is a harsh reality for them that casts the shadow of its …….