The new generation of taxpayers is entering the financial world. They are Gen Z, who have a different viewpoint on financial matters.
Gen Z is the generation that was born between 1997 and 2015. It was the first generation to grow up in a digital world. That has provided them with a different worldview, which gave them a different perspective for life, career and finance.
More than any generation, Gen Z is at an advantage to access any opportunities caused by the technological shifts of this era.
Financial services are one of those sectors most benefited by the rapid advancements in technology. In this era, the opportunity to democratize access to a variety of financial solutions is tremendous.
For a long time many financial products, services and advice were directed towards affluent pre-retirees and the ultra-rich. That led to lower awareness and adoption among the masses, who were dependent on relatives or friends for advice.
That has all changed today. Financial advice is available everywhere. But it is difficult to identify what is true and what is false. But some timeless financial advice will help the new generation attain financial well-being.
The first piece of advice is to be disciplined, especially when it comes to personal finance. Everyone cannot make good decisions every time in their life. But with discipline, one can be in complete control of one’s financial life.
If done properly, it will open the doors to new opportunities that will permit one to excel financially. Whatever your goals are, discipline is necessary to reach them. It will also lead to better financial freedom.
The next piece of advice is budgeting. When one budgets one’s life, it will diminish the odds of living on the edge and increase the chances of saving money. It will take some effort, but once you master it, it will be a way of life.
Next is emergency funds. These funds are a savings pool that is only to be utilized in case of emergencies/crises such as loss of a job or an unexpected medical bill. It should be outside the typical savings.
After opening an emergency fund, one can concentrate on other aspects of personal finance, such as insurance and goal-investing etc.
Next is something one must do while following all of the steps. Planning for something that hasn’t occurred yet might give you a sense of illogicality. But it will make you feel equally guilty when you realize that you haven’t prepared yourself for it.
In this case, one has to be proactive and plan. So that one can be prepared both mentally and financially.
Unlike any Indian generation, more than half of Gen Z is beginning to enter the corporate world. Thus, it is necessary to be proficient in the language of money to make the best financial decisions for yourself.
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