Who are Millennials?
Okay, I won’t go with all the achievements that millennials made so far and what distinguishes them from other generations. Putting it simply, millennials are those who were born in 1984 and after and were basically grown up with electronics, progressively online and the socially-networked world. If you are also categorized under millennial world then you might be knowing about the changes that the generation made; say it socially, economically and scientifically.
Millennials are different from all other generations and, Buddy! you know the best when you had a clash with people much much elder than you. Millennial has got their own way of thinking which very much segregates them from other world. They tend to be tolerant of difference. By difference, I mean, this generation knows that they are very much different from other generations and have the capability to make some changes into the world. Though millennial is a very cool generation to look at from outside but from inside you will find a few accusations from other generation that we (the millennials) are bound to get suffocated. Born with the philosophy of “be yourself” and “follow your dreams,” millennials are thrust into the entitlement of being narcissism… Umm! I think am dragging myself too much into the problems of millennial. Let’s get straight to the point.
Why Millennial are producing more millionaire
As you know that millennial has got an outstanding confidence in bringing changes and henceforth, they develop a very optimistic attitude towards life. They believe in nothing is impossible, as literally, nothing seems to be impossible. You see, if you are at the last-gasp of your entire dedication to find a soulmate for yourself, you will get it within an hour of chatting online with girls connected via different social apps. You text her today and marries her the other day. You know that she is the only perfect girl because social networks know your detail way much better than your own mom; haha kidding! (maybe not).
And this way everything is so so quick and easy to acquire. Since, according to a report, 50 percent of millennials consider themselves as politically and religiously unaffiliated, thereby their focus increases more on high tech businesses like apps and specialist websites where they find a reason to prosper in a way that would make their life much easier. This young generation is increasing the global Rich lists and is set to be the ‘captains of industry.’ Because millennials are learned and accustomed to technologies, henceforth it is quite obvious for this generation to think deeply about the technical advancement and how they can make their life much easier than before (Yeah! I know some of you be like “lazy lad”) but its 100% true.
And this is where millennials learn to save early in order to set themselves on a different platform. Millennials believe in saving early which becomes the key to long-term financial security. A study conducted on millennial depicts that about half of people between the ages of 21 and 37 expect to eventually become millionaires (or already are). Talking about their financial plan, millennials expect to retire at age 56 (this estimation varies in male and female- males expect at age 53 and females expect it at 59). This graph has already beaten the generations of old people who never thought of getting retirement so soon. (Ah! Feeling blessed to be born as a millennial)
Workplace satisfaction matters over monetary compensation
Do you face the same issue that I faced every day when your parents or elders forced you a lot regarding completing your “education degrees” and “settling life” by getting a job and you deny every time proving them wrong in their approach to settle life by finding security? Don’t worry, you are not the only one to face this. Every millennial knows the struggle behind it which makes others to think as “narcissist” or “self-interested” and thereby creating a huge generation gap.
The studies conducted on millennials found that 71% of millennials eligible for a 401(k) planned participate (will explain this one) and that 70% of millennials began saving at an average age of 22. This means millennials are quick at aspiring what they want. In the world of technies, you know everything is POSSIBLE! Apart from being a super saver, 53% of respondents in the survey said that they believed they’d become millionaires in their lifetimes, with about 7% predicting it would happen by the time they turned 30, 19% by age 40 and 16% by age 50.
But how this graph happens to be favoring millennials to get success at such a tender age? It’s because millennials chose the ‘purpose of their work’ and not the work itself. If you are satisfied with your work, you got to go a long way and will find a peaceful life. Millennials believe in having an impact and not just to produce. This attitude helps the generation to flow with the easiness of life and get the deeper value of life and fulfillment.
What is 401 (k) Plan
401 (k) Plan is an employer-sponsored retirement plan, by definition it means, an arrangement that allows an employee to choose between taking compensation in cash or deferring a percentage of it to a 401(k) account under the plan. Qualified plans are divided into two different ways: They can be either defined contribution or defined benefit. Defined contribution is a retirement plan in which employees contribute a fixed amount or a percentage of their paychecks in an account that is intended to fund their retirements. Whereas, defined benefit plan is an employer-sponsored retirement plan where employee benefits are computed using a formula that considers several factors, such as length of employment and salary history.
Reason for early savings
If we throw this question that why millennials are super-savers and what influences them, our answer would be divided into many categorical phrases. I know if I start listing all, you would definitely get dejected at one time. That’s why Pal, am gonna share only a few of them.
If you count on an average, too many of the millennials grew up subject to bad parenting techniques. Yes! you agree with me. How many times you listen to your parents saying ‘you are special and have the power to bring changes,’ am sure not even once. Parents always molded their children the way they wanted. So, if you get good grades, it’s because your parents thrust you into that and force you to get good grades. So, if you get into honors classes, it’s not because you deserved it but because your parents complained.
Henceforth, these kids started developing a sense of embarrassment for themselves of not doing what they actually wanted to do. Now comes that phrase of life when these millennial kids get a decent job and find out there is still something missing in their life despite fulfilling accordingly to the notions of being a “good guy.” And here plays the role of doing something that is based on some purpose and not merely following the bogus rules of life. Millennials started learning the art of saving and investing, thereby making them a millionaire at quite a young age. Am not joking! The list of millennials becoming a millionaire is increasing.
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A survey shows that 43% of millennials save for their vacation and the remaining 39% for emergency funds, for example, home/auto repairs or unexpected bills and 38% for their retirement. 8 in 10 millennials see themselves as ‘savers’ as opposed to ‘spenders’ which gives them a complete guide to using their money effectively, unlike lavishly wasting it out that our older generation used to do (no offense, Granpa!).
Spending on the stock market
Now if you have gone through my article where I talked about becoming rich, you know it very well that for some great thinkers, passive income becomes necessary. Evey millionaire does from the very beginning of their serious career, and so does the millennials. Half of Millennials invest in the stock market and half do not. Passive income is a great source to start your business and grow perpetually. Though investing in stock markets and other bonds need to be crammed up before going with it, therefore half of the millennials find a different way to prosper their passive income. Half (49%) of Male Millennials rate their investing knowledge very high compared to only 2 in 10 (19%) Female Millennials who rate themselves similarly.
Once these millennials know themselves very well and know their capabilities to carry on with their ‘peaceful’ life, they are not very far in achieving what they want in life. Imagine yourself that much rich where you can buy anything you wish for and no obstructions in your dreams! (Hey, Hey! Don’t take it in a bad sense).
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