Many young people in the X and Y Generations are earning excellent incomes but have little savings, excessive debt and consider the future too distant to be of concern. Follow through this case study and learn how young people can plan their futures without sacrificing their current lifestyles with smarter spending.
Kylie and her short spending story
After Kylie completed university and had landed a well-paying job, her only plan was to enjoy her new financial freedom. She had living to do – the future was a long way off and would take care of itself … wouldn’t it?
Kylie’s spending character
Kylie’s first purchases were a trendy new hatchback car and expensive clothes suitable for climbing the corporate ladder. Enjoying her exciting lifestyle, she regularly visited restaurants and bars, and took an overseas holiday each year.
Research from Impact Leaders
According to research conducted by Impact Leaders, Kylie’s way of life is common with one third of 18–34 year olds. Having no savings and excessive debt.
After all, it’s understandable when you’re in your twenties and early thirties to put thoughts of saving for a home, much less retirement, aside. Because time has a nasty habit of getting away from you – just ask your parents!
Survey from Leading Edge Trends
A survey by Leading Edge Trends, found that the majority of 18–24 year olds won’t own their own home by retirement. Because they are fostered by a ‘buy now, pay later’ mentality. The result is that many will be excluded from home ownership. While others will struggle with late-life mortgages and financial insecurity at retirement.
Back to Kylie’s Story
A few weeks after returning from an African safari. Kylie was informed that her position at work had been made redundant. With no savings behind her, she borrowed from her parents to pay her rent and other regular bills.
Shortly after her lay-off, Kylie was forced to sell her car and use her credit card to manage her everyday expenses. Fortunately, within six months Kylie found a new job, again with a good salary. After her brief period of unemployment she’d racked up considerable debt. A large portion of the new salary would go towards her debts. It would take years to recover.
What can you do to ensure your story doesn’t end up like Kylie’s and continue the road to smarter spending?
Savings
A savings plan doesn’t mean restricting yourself. Even small amounts deducted directly from your wage quickly add up. In addition, can also become a future home deposit or a safety net for emergencies.
Budget
Sounds boring, but a realistic budget can help you to live within your means and practice smarter spending. Without relying on credit or feeling like you’re missing out.
Income protection
A young person starting out on a big career should consider buying an income insurance policy.
Get advice
Not just for older or well-off people, a financial adviser helps you to create your budget and savings plan. They could also help you take advantage of enjoying life now.
Naturally, buying a house may not interest you just yet, but how cool would it be if the money were available when you were ready?
Advice is probably inexpensive and a way to prove smarter spending. Contact us to find out how your future can gain a head start.
Make the right choice today! Book a cost and obligation-free financial advice appointment: https://bit.ly/your-right-choice.
Visit our website to learn more: https://rightchoicefinancial.com.au/