Saving has been a tough decision for most, more so for the current generation. The members of Gen Z and late millennials are now the youngest employees in the workforce. As they venture into their professional careers, many are failing to prioritise on a key aspect of their finance– savings and investment.
According to a report by Deloitte, millennials and Gen Z save less than what they spend on their lifestyle and this is less than 10 per cent of their income.
This generation spends most on monthly essentials followed by education and utilities. Any additional income is spent towards dining out and entertainment, apparel and accessories, electronics, travel and so on - basically experiences. Out of the total income including incremental income, saving holds only 10 per cent share in it. This indicates a shift towards a consumption economy rather than a savings economy, which was a predominant feature of the preceding demographic cohort.
Warren Buffet’s golden advice on wealth management is ‘Do not save what is left after spending but spend what is left after saving.’ But it appears that this generation has a different philosophy to follow.
The young members of the workforce differ from their previous generations, Gen X or Baby Boomers as they are preferably called, by their lifestyle choices, expenditure pattern, a significant need for convenience, and brand preferences. Saving for retirement, buying homes and other traditional markers of achievement are no longer desired. Most of them have adopted the “You Live Only Once (YOLO)” ethos, enjoying life to the fullest, at the cost of their savings. Truth be told, many of them have no track of their spending, and have even less than ₹1,000 in their savings account.
Denne historien er fra December 2019-utgaven av Outlook Money.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra December 2019-utgaven av Outlook Money.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Stay Ahead Of AI-Powered Cyber Fraud
AI has become an integral part of our lives, right from customer service at banks to insurance claims. But it has now become a powerful arsenal for the fraudsters too who are increasingly using AI to scam individuals and corporations alike to commit fraud. The key is to stay vigilant
Travelling To Europe? Pack In The Essential Covers
Smart travellers must know that insurance is a must-have. From essential health coverage to theft protection and trip interruptions, know what you need for a worry-free Europe trip
How To Spend Wisely This Year-End
We all spend during the year-end. But the trick is not to overspend or borrow, either from friends, or your own investment, to fund your indulgence. Maintaining balance is the key
Travel Now Pay Later (TNPL)
Travel now, pay later (TNPL) is a close cousin of the more popular buy now, pay later (BNPL) schemes.
12 Books Devina Mehra Loved Reading In 2024
Listing books of her choice, among the ones she reads during the year, is ace investor Devina Mehra's favourite year-end activity. She says it's a daunting task to pick around 12 books from a list of 50.
Here's How To Avail Of Ayushman Bharat Yojana
Launched in 2018, the Ayushman Bharat Yojana aimed to provide health coverage to targeted benefi ciaries from the Socio-Economic Caste Census (SECC) 2011, based on deprivation and occupational criteria.
'Focus On The Business, Assess If You Want To Be A Partner For 10-20 Years'
Professor Sanjay Bakshi, a value investor, behavioural economist and adjunct professor at Flame University, Pune, gives his unique perspective on how to choose a stock, in an interview with Nidhi Sinha, editor, Outlook Money, as part of the Wealth Wizards series. He also shares his learnings from role models Warren Buffett, Charlie Munger, Benjamin Graham and others, and how being a chartered accountant, economist, investor and teacher make him into what he is today. Edited excerpts from the interview
The New Trump Card For IT, Pharma
Donald Trump has been re-elected as the 47th President of the US after a gap of four years. Here's how it will affect the Indian markets and how it will benefit sectors such as IT, pharma, export-oriented sectors and others
European Sojourn
Tight on budget? Dump the popular European destinations for the little-known wonders that are equally attractive
Gold ETFs And FoFs
While Indians love to invest in physical gold, even mutual funds offer the option, but in paper format.
