Millennials
Our approach to financial management delivers clarity for all client types – from individuals building wealth to high net worth families – through the utilisation of a strategic management framework & repeatable processes which address the entire balance sheet, and not just an investment account.
For 2019/20
The Millennial Way
Millennials are finding it increasingly difficult to not be scared about their financial future without being angry about the past.
“I am 35 years old—the oldest millennial, the first millennial—and for a decade now, I’ve been waiting for adulthood to kick in. My rent consumes nearly half my income, I haven’t had a steady job since Pluto was a planet and my savings are dwindling faster than the ice caps the baby boomers melted.” – By MICHAEL HOBBES
“I am 35 years old—the oldest millennial, the first millennial—and for a decade now, I’ve been waiting for adulthood to kick in. My rent consumes nearly half my income, I haven’t had a steady job since Pluto was a planet and my savings are dwindling faster than the ice caps the baby boomers melted.” – By MICHAEL HOBBES
There are tons of statistics and comments that millennials have heard presented about them. These include: more millennials are living with their parents than with roommates; more millennials delay buying a home, getting married or having kids than any other generation; many millennials are quick to say that they have studied the wrong degree; they don’t work hard enough and they are lazy. If you say millennial to anyone over 50, the word ‘entitlement’ will come back faster than green grass through a goose.
There are tons of statistics and comments that millennials have heard presented about them. These include: more millennials are living with their parents than with roommates; more millennials delay buying a home, getting married or having kids than any other generation; many millennials are quick to say that they have studied the wrong degree; they don’t work hard enough and they are lazy. If you say millennial to anyone over 50, the word ‘entitlement’ will come back faster than green grass through a goose.
Millennials make up 75% of the world’s population, of which 25% are South Africans. The majority of millennials did not go to college, didn’t work as a waiter or bartender and can’t lean on their parents for help which means every stereotype of our generation only applies to the richest, smallest group of young people.
Millennials make up 75% of the world’s population, of which 25% are South Africans. The majority of millennials did not go to college, didn’t work as a waiter or bartender and can’t lean on their parents for help which means every stereotype of our generation only applies to the richest, smallest group of young people.
Millennials are half as likely to own a house as young adults were in 1975. They have taken over 300% more student loans than their parents did. Baby Boomers needed roughly 306 hours of minimum wage work to pay for four years of college, but Millennials need roughly 4,459. 1 in 5 millennials are living in poverty and statistics say that millennials are most likely to only retire by 75, and not by choice.
Millennials are half as likely to own a house as young adults were in 1975. They have taken over 300% more student loans than their parents did. Baby Boomers needed roughly 306 hours of minimum wage work to pay for four years of college, but Millennials need roughly 4,459. 1 in 5 millennials are living in poverty and statistics say that millennials are most likely to only retire by 75, and not by choice.
It all boils down to uncertainty. A significant portion of millennials are delaying buying a home or saving a sufficient amount of money, and nearly half are suffering so much from paying off student loans that they don’t think the financial repercussions are worth it. Millennials of today need statistics and figures. They have information at their fingertips and are not scared to use it. Before any meeting, they will make sure to research you, your company and everything they need to know to ensure that what you have to offer is something they want or need.
It all boils down to uncertainty. A significant portion of millennials are delaying buying a home or saving a sufficient amount of money, and nearly half are suffering so much from paying off student loans that they don’t think the financial repercussions are worth it. Millennials of today need statistics and figures. They have information at their fingertips and are not scared to use it. Before any meeting, they will make sure to research you, your company and everything they need to know to ensure that what you have to offer is something they want or need.
Millennials are very astute regarding matters they are interested in. However, they are not concerned about how to save, how to budget, and general insurance matters as they see themselves as young and invincible. They are known as the “live-in-the-moment generation” and spend most of their earnings on their wants as opposed to their needs.
Millennials are very astute regarding matters they are interested in. However, they are not concerned about how to save, how to budget, and general insurance matters as they see themselves as young and invincible. They are known as the “live-in-the-moment generation” and spend most of their earnings on their wants as opposed to their needs.
Most young people don’t think twice about insuring their vehicle. They are happy to pay around R900 a month to insure a 250k VW Polo because they know that if their car is in an accident or if it is stolen that they don’t have R250k lying around to replace it. What they don’t realise, and what many people wish they had been told, is that securing their income is one of the most important things they should do. What’s the most important asset one has? It is one’s ability to earn an income. So, what happens when that ability is taken away?
Most young people don’t think twice about insuring their vehicle. They are happy to pay around R900 a month to insure a 250k VW Polo because they know that if their car is in an accident or if it is stolen that they don’t have R250k lying around to replace it. What they don’t realise, and what many people wish they had been told, is that securing their income is one of the most important things they should do. What’s the most important asset one has? It is one’s ability to earn an income. So, what happens when that ability is taken away?
If a person had to lose their ability to earn a living due to illness or injury, would they have R20 million lying around? Because that’s what they would lose in earnings should they not be able to work. What if we told you that this peace of mind would cost nearly half of what their premium would cost to insure their R250k vehicle?
If a person had to lose their ability to earn a living due to illness or injury, would they have R20 million lying around? Because that’s what they would lose in earnings should they not be able to work. What if we told you that this peace of mind would cost nearly half of what their premium would cost to insure their R250k vehicle?
We feel the reason why youngsters don’t have income protection, is not because they don’t see value in it, but because nobody has really sat down with them, and explained the massive importance of this benefit.
We feel the reason why youngsters don’t have income protection, is not because they don’t see value in it, but because nobody has really sat down with them, and explained the massive importance of this benefit.
It is critical to protect your most valued asset, your income! Should you want more information and advice please don’t hesitate to contact us.
The Millennial Way
Financial Habits to Adopt
Track your expenses
Always ensure you know where your expenses are going. Keep track of them and try cut down wherever you can.
Plan for retirement
Know that you can’t work forever and so you will have to retire one day. Start saving and investing for retirement today.
Pay for value
Don’t focus on price alone. Spend on products that are of quality and will give you the best value for your money.
Pay your bills on time
This will make sure you always have control over your finances and help you to avoid having to accrue interest.
Invest and save more
If you only rely on just making money, it will take you a lot more time and effort to reach your goals. If you invest, your money will grow and thus help you save more over a shorter time frame.
If you need assistance in ensuring that you have a safe financial future, get in contact with us today!
The Millennial Way
How To Save In 9 Easy Steps
A simple rule of thumb that millennials can apply when it comes to managing their income and making provision for saving is the 50-30-20 rule. 50% of your salary should cover your essential expenses. 20% should be directed towards your investments and personal goals. And the remaining 30% for flexible, or non-essential spending. However, if you have existing personal debt, you should use the 30% to pay off the debt first. Here are 9 steps in saving your income.
Eliminate debt first
Set saving goals
Get insured
Establish a time-frame
Record your expenses
Trim your expenses
Make a budget
Stop using credit cards
And don’t give up!
The Millennial Way
YES! Even Millennials Need Life Insurance
You aren’t bullet proof
Whilst you are young, you are less likely to fall critically ill but at the same time, you are at a higher risk of accidental death than at any other time in your life.
Insurance is cheaper for you
As insurance companies are aware of the low probability of you falling critically ill at your age, premiums will be lower than at any other point in your future.
You are young and healthy
Rather purchase a life insurance now while you are in a healthy condition because if you experience an event where you are no longer in perfect health, it might become impossible to get a policy.
Don’t be a financial burden
You do not want to pass away and leave financial strain on your family. Life cover ensures that your family is protected financially if you pass away.
You aren’t bullet proof
Whilst you are young, you are less likely to fall critically ill but at the same time, you are at a higher risk of accidental death than at any other time in your life.
Insurance is cheaper for you
As insurance companies are aware of the low probability of you falling critically ill at your age, premiums will be lower than at any other point in your future.
You are young and healthy
Rather purchase a life insurance now while you are in a healthy condition because if you experience an event where you are no longer in perfect health, it might become impossible to get a policy.
Don’t be a financial burden
You do not want to pass away and leave financial strain on your family. Life cover ensures that your family is protected financially if you pass away.
Just in case the above 4 points didn’t show you the importance of life insurance, here are 5 reasons you need life insurance today.
You are a breadwinner
Life insurance ensures that your spouse and children would be protected financially if you were to pass away.
You have a home mortgage
Life insurance can ensure that your family does not have to lose their home in the event of a disability or death.
You have aging parents who rely on you
Life insurance can ensure that if you have parents who rely on you, they will still receive the care they need should you pass away.
You are a business owner
Life insurance can ensure that if you pass away, your family will not be burdened with your debts.
You have unpaid loans/debts
Life insurance can ensure that outstanding debts and loans are paid off if you pass away, so that your family does not need to worry about doing so.
You are a breadwinner
Life insurance ensures that your spouse and children would be protected financially if you were to pass away.
You have a home mortgage
Life insurance can ensure that your family does not have to lose their home in the event of a disability or death.
You have aging parents who rely on you
Life insurance can ensure that if you have parents who rely on you, they will still receive the care they need should you pass away.
You are a business owner
Life insurance can ensure that if you pass away, your family will not be burdened with your debts.
You have unpaid loans/debts
Life insurance can ensure that outstanding debts and loans are paid off if you pass away, so that your family does not need to worry about doing so.
Get in touch with us for further information on investments, short and long-term insurance, life cover, disability cover, health benefits, income protection and more.
COLLABORATION
Associate Companies
Ready to BUILD YOUR FUTURE?
A Financial Plan is not just about your future, but about your present as well. Many people believe financial planning will help them only in their future, however, it is something that will help you learn about playing fully in this very moment. Therefore, rather than constantly worrying about future security, look at what best you can do in the present with your financial resources.