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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 that all millennials have heard. There are more millennials living with their parents than with roommates. Millennials delay buying a home, getting married or having kids than any other generation. Everyone is quick to say; they have studied the wrong degree. They don’t work hard enough. 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 that all millennials have heard. There are more millennials living with their parents than with roommates. Millennials delay buying a home, getting married or having kids than any other generation. Everyone is quick to say; they have studied the wrong degree. They don’t work hard enough. 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 worlds population, of which, 25% are South Africans. 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 smallest and richest of young people.

Millennials make up 75% of the worlds population, of which, 25% are South Africans. 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 smallest and richest 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 worked roughly 306 hours a week to pay off 4 years of college. Millennials are having to work roughly 4459 hours a week to pay off 4 years of college. 1 in 5 of millennials are living in poverty and statistics say, 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 worked roughly 306 hours a week to pay off 4 years of college. Millennials are having to work roughly 4459 hours a week to pay off 4 years of college. 1 in 5 of millennials are living in poverty and statistics say, millennials are most likely to only retire by 75 and not by choice.

It all boils down to uncertainty. A big portion of millennials are delaying buying a home, 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. Prior to any meeting, they will make sure to check you, your company and everything they need to know to ensure that this is something they want or need.

It all boils down to uncertainty. A big portion of millennials are delaying buying a home, 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. Prior to any meeting, they will make sure to check you, your company and everything they need to know to ensure that this is something they want or need.

Millennials are very astute with information regarding matters they are interested in, but matters regarding on how to save, how to budget, or general insurance matters, they are not too concerned about as they see themselves as young and that nothing would ever happen to them. 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 with information regarding matters they are interested in, but matters regarding on how to save, how to budget, or general insurance matters, they are not too concerned about as they see themselves as young and that nothing would ever happen to them. They are known as the “live in the moment generation” and spend most of their earnings on their wants as opposed to their needs.

We were all young once and lived care free, but we wish that someone had come to us when we were at that age and had told us about the power of saving, or about the power of securing your income should you get ill or injured because if you think about it, what’s the most important asset you have? It’s your ability to earn an income. So what happens if that ability is taken away due to illness or injury, what then? To illustrate my point, most young people don’t think twice about insuring their vehicle. They are happy to pay around R 900 a month to insure a R250k VW polo, because they know that if the car is in an accident or is stolen, they don’t have R250k lying around to replace it.

We were all young once and lived care free, but we wish that someone had come to us when we were at that age and had told us about the power of saving, or about the power of securing your income should you get ill or injured because if you think about it, what’s the most important asset you have? It’s your ability to earn an income. So what happens if that ability is taken away due to illness or injury, what then? To illustrate my point, most young people don’t think twice about insuring their vehicle. They are happy to pay around R 900 a month to insure a R250k VW polo, because they know that if the car is in an accident or is stolen, they don’t have R250k lying around to replace it.

Now if they had to lose their ability to earn a living due to illness or injury, do they have R20 million lying around, because that’s what they would lose in earnings should they not be able to work, and what if we told you that this piece of mind would cost nearly half of what there premium would cost to insure their R250k vehicle.

Now if they had to lose their ability to earn a living due to illness or injury, do they have R20 million lying around, because that’s what they would lose in earnings should they not be able to work, and what if we told you that this piece of mind would cost nearly half of what there 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 arent 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.

Dont 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 arent 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.

Dont 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.