The present situation made the youngsters to make financial security their top priority.
After getting a job as an interior designer, the first thing 24-year-old Supriya Singh did, was to ask her father about ‘financial security’ so that she could start saving money.
Supriya’s desire for financial security goes back to the time when one of her relatives faced financial problems. She said, “My relative lost his job due to the pandemic and his family faced a lot of difficulties.”
Singh further said, “For me, financial security is the most important thing. It’s not only about having money in your hand; it’s also about having mental peace. You cannot sleep if you don’t have any savings for emergencies.”
Sunil Singh, Supriya’s father, agrees with her. He believes one should start saving as soon as one starts earning. “Earlier, people used to live in joint families and had their own houses. The bills were equally divided. But now, with an increase in salaries, expenditure has also increased, especially if you live in another city. In such conditions, it is crucial to start saving and be financially secure” he said.
Aviral Agarwal, 23, an engineering graduate who will begin working as a mechanical engineer in June, has started planning his finances. He said to The Observer, “It gives you a sense of security and not just in terms of money but also mentally and emotionally.”
He talked about his saving plans. “The very first way is to stop the urge of spending needlessly. I talked to a finance expert who advised me to start a savings account and invest some amount… in mutual funds.”
A survey conducted by the credit payment start-up Slice in 2021, Gen Z and millennials in India are prioritizing their health and financial security. The survey stated that in 2021 “investing money” has come up as one of the important resolution of the year. While 57 percent of the respondents between the ages of 18 to 30 said, they would like to invest better, 21 percent said, they believe in saving more.
Abhishek Kumar, 28, an owner of a cloud kitchen, believes financial security gives one the confidence to take calculated risks. “I would not have initiated my startup if I didn’t have any financial security. For me, it allows me to be more aggressive with my career and do experiments.”
Kumar, who earlier worked with Zara and Raymond, said, it was his savings and investments that allowed him to start a cloud kitchen.
Shikha Shipra, 23, a civil engineer, shared: “Financial security is important for youngsters so that they have enough money to support their lifestyle as well as work to move towards their financial goals. It is also essential to avoid future debt and bankruptcy.” She believes financial security gives one the confidence to try something big in life.
Financial experts’ take
Financial experts believe financial security is as much important as health.
Anjali Pandey, a financial adviser at PolicyBazaar.com, informed The Observer: “Having financial security gives you a peace of mind at times when you’re struggling with your job and hence, prepares you for worse. It also helps to retire early and have more free time and not depend upon any job or other people to support you.”
Pandey stressed on diversifying one’s investments and savings as much as possible. “Never put all your eggs in one basket is the mantra for financial security.”
Abdiel Puman, a financial analyst, feels financial security isn’t just about having a lot of money. It means that you have a sufficient amount of money for your long-term goals. “Long-term goals can be buying your own house or vehicle, going on an international trip or funding your own higher education. There are many youngsters who, after getting a job, study for competitive exams or aspire to study abroad. For all these goals, you need to be financially secure as well as stable.
“Depending on his/her capacity, a youngster should start investing as early as possible to lead a comfortable life.”
An article in the Financial Express said Indians have become more aware about life insurance in the past two years due to Covid. The need for financial security has become a priority for people, states Max Life’s annual flagship survey. The survey also noted that millennials were at same level with non-millennials in insurance buying. Women were at same level with men in the protection index.