Millennials shake the world-digitally. But from an economic point of view, they don`t.
Although they connect to the world through hand-held screens, there seems to be a big disconnect between their future wealth and the security they have for their parents and grandparents from birth.
Previous generations can easily make money in real estate and stocks, and their jobs will be tough in the future, with little to enjoy after retirement.
A reporter has written an article outlining the poverty of many older millennials, especially if you were born in the early 1980s to mid-1990s.
So, what should we do?
1. If you own a house, you should take a long-term view
Home prices have more than doubled over the past 20 years. In the past six years, prices in Melbourne have risen by 50% and in Sydney by 70%.
For most millennials, like their parents, the opportunity to buy a house in Melbourne or Sydney in their early twenties is long gone.
2. Where you can afford it.
If Melbourne or Sydney fails, even in the long run (and as bank lending standards are tightened, the situation will only get worse), one strategy might be to buy a house in a cheaper place and rent it out.
As time goes on, you can buy a house in your own way where you really want it.
Many millennials will inherit from parents and other family members, which will help the process, but of course many will not.
In the worst-case scenario, you retire in your own house, Ballarat or Mudgee, rather than Melbourne or Sydney, where high rents or mortgages make up a large part of your income.
3. Long-term thinking with existing money
This suggestion also refers to "controlling your spending".
The income from our work can only be said to be limited. The truth is, the more we spend now, the less we save on homes or retirement.
This is where shrewd decisions need to be made.
You can choose to go camping instead of going abroad. You can buy a used car instead of a new car. Eat at home rather than go to a restaurant and let the iPhone 5 stay a little longer and have a cup of coffee a day instead of two. All these savings can be accumulated.
4. Record expenditure and prepare budget
If you don`t know where to spend your money, it`s hard to control your money.
An expense diary, say, six months, you write down everything from the biggest to the smallest, such as a pack of gum.
You may be shocked by your findings. For example, lunch of 10 yuan a day accumulates a lot of money in six months or a year.
Preparing a budget can help you carefully check where your money is spent and tell you if you spend more than you earn (like many people).
5. Home purchase pension deposit scheme
There is one way to increase your savings through tax breaks from the pension system.
People will be able to deposit 30,000 yuan a year in savings accounts to take out the money they have saved and the identified proceeds from the savings to buy their first home. In a word, a little makes a lot of things.
6. Watch your pension.
The pension will not be set, and do not assume that your employer will deposit 9.5% of your salary into your pension account. Pay attention to yourself.
The sooner you get into a pension, the better, because in 30 to 40 years, compound interest becomes a lot of money.
The Australian Association of Retirement Standards funds recommends that a couple need about $60, 000 a year to enjoy a comfortable retirement, and that individuals need about $43000 a year.
To get $43000 a year, you need a pension of about $ seven hundred and fifty thousand, a figure that most people can`t access.
7. Pension share
This is a good way for low-and middle-income people to increase their pension income.
For those earning $37000, they can call super for $1000 and government will pay $500.
Even if you only do so for a few years when you are young and single, compound interest will do the rest for you.
8. Avoid being blackmailed by retirement funds
If you have more than one pension fund, merge your money into one fund. You will lose a lot of money in the future by paying two retirement fund fees.
At this point, as the Royal Banking Commission and the Productivity Commission recently emphasized, pension insurance is a huge loss, another pension that "eats" money.
Make sure your pension fund insurance is what you really need.
As a suggestion, you can only declare one income insurance policy, so if you have more than one insurance, the rest is junk.
9. Consider investing wisely to increase your wealth
This is not for everyone. Before you try, you should consult a reputable, real, and fee-based financial adviser. Ask your friends and family to find a counselor.
There are a lot of investment strategies that can boost your wealth and help you get closer to your life goals. Reasonable operation, otherwise it is gambling, not investment, this is a lot of stakes.
It`s also difficult for millennials, but you can try to achieve your financial goals in life.
