5 Tips for Keeping Wealth Building on Track
There is no denying the fact that Millennials have spent the last decade struggling to build wealth. The 2008 Global Financial Crisis has seen ripple effects impacting this generation heavily: the last decade marked with rising debt, job insecurity, housing affordability, wage gaps, rising cost of living and delayed decisions in home ownership and marriage.
Fast forward to 2020 and the current global pandemic; another period of economic uncertainty, continued doubt, and the burning question of, “Are we ever going to get financially ahead?”
While financial security still feels far away for many millennials, research is suggesting that amidst this economic crisis, there is a silver lining.
That lining – albeit tough – is indicating positive trends when it comes to the financial state of millennials.
In fact, the economic impact has inspired a revived drive within the generation, and many millennials are shifting their focus towards wealth-building and financial literacy. Motivated to learn how to future-proof their finances.
Limiting expenses, optimising savings, and expanding investment portfolios are behaviours being observed. Research indicating that up to two-thirds of millennials have changed their thinking when it comes to spending, with much of the population already spending less. Plans to reduce travel and trips to the office, moving closer to family or forsaking cities for less populated areas are all on the consideration list.
So, what can you do to alleviate the pinch, and continue to keep your wealth building goals on track?
- Check spending. Wealth is not only about saving money but about managing it. Lifestyle habits also have to do with wealth management – meaning instead of spending on what you don’t need, save money for what you do need to build wealth.
- Budget. There are plenty of online (free) budgeting tools to help set you up for success. Try to prevent the working from home or work furlough boredom from killing your budget. Think about your next purchase: is it a must, or is it a ‘nice to have’?
- Apps. Use apps and get involved with different type of banking and investment accounts that help with saving and managing money
- Mindset. We all know that ‘for things to change, we have to change.’ To deal with uncertain times and continue to create wealth, it’s important that you recognise that personal responsibility, discipline, financial education and desire to succeed are going to be important to overcoming challenges.
- Seek advice. Not all of us speak fluent finance – or want to. Seeking advice from an expert can help minimise anxiety, provide clarity and help set up future financial goals.
While the current times are tough and the future unclear, one thing is for certain: Millennials are a generation who have grown up in an ever-changing world, and decade after decade have continued to adapt, change and move with the times. This period right now, is no exception.