Millennials worry about some concerns, like the generations before them.
Millennials are a generation with the YOLO (you only live once) mindset. This means that their first reason for pursuing something is happiness.
In other words their primary goal is to experience pleasure and happiness. This is true whether they are saving for or buying something. This is also true for Generation X and the baby boomers.
However, the huge difference lies in the concerns millennials have. And in this article, we have listed the main concerns that millennials worry about.
Millennials’ worry #1: More of the Present than the Future
Having enough to spend for their daily expenses is one of the biggest concerns that millennials face nowadays. In short, they focus more to the present instead of the future.
Millennials were born when families had lower household income, which was caused by a larger wealth gap.
Additionally, they were born in a sluggish job market. So, they preferred to get a higher education or an additional degree instead of having a day-job right away.
Everything felt a bit futile for them when they got a full-time employment. Why? Because their salaries are actually at the bottom of the scale.
Because of all of these, they are pushed into a great struggle, preventing them from having a well-planned budget. They also failed to have a solid financial goal.
Millennials’ worry #2: Being Independent
Since it is true that millennials are floating from paycheck to paycheck, being financially independent becomes next to impossible for them.
It becomes even more frustrating when you think that being independent is one defining quality of an adult. And you don’t want to be considered a kid forever.
Most of the time, millennials try to patch things up and become independent. How? By borrowing money from others. They do so only to start their journey to being adults.
However, this leads to another worry, articulated in worry #3.
Millennials’ worry #3: Debts
As mentioned, millennials are more willing to venture in different things to be totally independent.
Many choose to put up their own businesses, though small. And others choose the more traditional way: having two jobs at once. They do all these while they save money to someday put up their own business.
In doing these things, they need funds and capital. However, unless their parents or somebody gives them the funds, they would surely need to borrow.
And that is the start of their third worry. How do they get out of debt?
They have little opportunity of landing a job. And if they landed a job, salary’s a bit lousy. Thus, this generation always worries about debts and how to get rid of them. Moreover, they find it difficult to do the proper management of finances.
Fortunately, this generation is also among those who are very resourceful. Hence the different new and unique business models here and there.
Millennials’ worry #4: Future Planning
Since millennials think more about the present, it is not surprising to learn that millennials can’t catch up on retirement planning. Often, they are guilty of committing critical retirement mistakes.
This, plus the way retirement savings plans are presently structured, makes it more difficult for them to ensure their futures and put money aside.
Lastly, the disruption of economic and social safety nets during the last four decades left retirement savings weak to emergency withdrawals.
To put things in the right perspective, no one can receive any blame. Different generations have been born in different economic and financial circumstances. Technological innovation largely contributed to the changes that the millennials experience.
The most important thing to remember is that there is way to get rid of the worries that plague millennials.
With proper knowledge and a bit of guts and luck, millennials’ savings and investing will become something less of a worry, and more of an achievement. They can even conquer their fears of investing their precious and hard-earned money.
And if they succeed in doing so, their worries and concerns could fade away, and they can indulge more in their YOLO lifestyle.
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