Gen Z, who is rapidly making their way into the workforce at a tender age, is tech savvy, tolerant of diverse cultures, and more amenable. Moreover, breaking the stereotypes is definitely their tagline!
Visual Stories || Micheile/Unsplash | Gen Z usually takes impulsive decisions, even when it comes to money matters. But is it wise?
Now, while it’s great to do away with the age-old modus operandi and embrace the new, it might hit like a boomerang in certain cases. One among such cases is managing money. Youngsters are going all haywire following the advice given by contemporary finance influencers who suggest they “figure out their own path”. They’re opening and closing multiple accounts, investing in hot stocks, and selling them at the initial sign of bad news, aka - unnecessarily messing with money.
But is that really the way to go? Is that the best strategy to build a sound financial future? If not, what’s that secret formula to be a financial wizard?
Experts recommend the following tried and tested methodology which has yielded fruitful results over the years, that is, the ‘boring’ technique of leaving the money idle. Why do they advise so? Let’s find out.
It gives you more time to check off your bucket list
Avicii rightly says, "One day you'll leave this world behind; so, live a life you will remember". Considering the unpredictability of life, who knows what will happen tomorrow? So, there’s hardly any time to afford mistakes.
Managing your money is indeed a necessary chore, but that isn’t your entire life, folks! Why trap yourselves in the net of complex investments? Remember, the more you jump in muddy puddles, the more you stain your clothes. So, reach the summit, make money, but leave it absolutely idle for a while. This will provide you with ample time to check off that bucket list you made in your teens!
It constraints you from taking impetuous decisions
Newer methods require you to always stay alert of your notification bell. The outcome? Stressing over new stock market trends, taking a peek at the investments every now and then, and making rash decisions that have long-term effects.
The ‘boring’ method, on the other hand, keeps you from checking round-the-clock financial notifications and shoos away stress. So, hear out the experts who suggest turning off stock market alerts on your phone, taking a look at your investments only occasionally, and be chary about watching the news and staying updated.
Andrea Piacquadio/Pexels | Hear out the experts who suggest turning off stock market alerts on your phone, and taking a look at your investments only occasionally
And now that you know the reasons for sticking to the traditional technique, you must be wondering about the tricks to follow that. Don’t worry! We are here to help you with that.
#1 - Design a plan that motivates you to stay on track
No matter how perfectly planned your budget is, it can all go in vain without a plan. Experts believe that planning is reassuring. So, explore your tastes and chalk out the short, medium and long-term goals of your life. In that way, all your exciting future goals will keep you focused and keep fear at bay.
#2 - Always be prepared to surmount the unforeseen contingencies
Apart from planning your goals, always have emergency funds and life insurance in your kitty. This will help you to battle with any kind of quandary life puts you in.
Roman Odintsov/Pexels | Apart from planning your goals, always have emergency funds and life insurance in your kitty. This will help you to battle with any kind of quandary life puts you in
To wrap it up
We’re always dealing with some kind of stress whatsoever. Why add some more by engaging in convoluted ways of money management? Hence, follow your grandpa’s footsteps and manage your finances in his ‘boring’ (read: top-tier) method and achieve nirvana!