The times are changing and so is the attitude of Millennials towards money, investments and financial goals. Here are the five most common personal finance goals for the practical Millennials:
- Increase income to match living expenses – The present working generation understands the importance of continually earning more. As cost of living is rising gradually, it is important to supplement your income to match the living expenses and be able to save for other life goals as well.
- Save to enjoy life before retirement – Instead of solely focusing on the golden years, Millennials want to earn more to enjoy more. They are not averse to spending money on travel, food, luxuries and other good things in life. A great idea, indeed, if you can balance your expenses and dreams with your investment goals by setting an effective household budget and sticking to it.
- Own a house – Despite numerous blogs, articles and financiers harping about the advantages of renting over buying a house, buying a property remains a coveted dream for most, especially due to the emotions attached with owning a property and family pressure to buy one’s own home. However, investing in property crops up its own challenges and keeping the maintenance and other associated costs in mind, investing in equity over longer time-period may provide better returns.
- Quality education for children – A goal that is a part of every list is to ensure quality education for their kids. As the cost of education rises phenomenally, it helps to plan your child’s education in advance. Investing regularly in mutual funds aligned to the educational milestones in your child’s life will ensure you can provide for her education, anytime.
- Retirement fund – More and more people are realizing the importance of saving for their hey days and are increasingly investing towards building a comfortable retirement fund for leading a respectable life in the later years. However, little do we realise the benefits of starting early and consistently investing towards the retirement corpus as every year of working life must contribute towards funding one year of retirement and any saving breaks will significantly affect your corpus as a whole. A smart idea would be to systematically start investing in mutual funds via SIP or Systematic Investment Plan, starting as low as INR 1,000 per month.
The market is full of financial advice and investment products that can confuse any investor. To make informed investment decisions, it is prudent to consult a financial advisor who can help you understand your financial situation better and suggest investment options in line with your financial condition and vision.
Nave Marg, represented by Goa’s own financial doctor, Dr. Celso Fernandes; author of “Who says money doesn’t grow on trees”, has been on a mission to educate and inform people about the importance of investing, helping them set financial goals, and letting them realise the merits of investing from an early age.
How many of these financial goals form a part of your list? Drop a comment and share your top financial goals.