What is High Net Worth?
High net worth individual is an expression that is used in the financial world for someone who has wealth or money a minimum of $ 5.000.000 excludes their personal asset like their living house. Is this possible? It's possible, and if you want to apply some of high net worth financial planning, then you are in the right article.
The millennial or the youth generations commonly identified as a generation with a glamorous lifestyle, hedonism, and having fun. We see a lot of youth workers who look astonishing with their looks at the office with branded things on their bodies, such as clothes, suit, accessories, and even their shoes. This came from their attitude, the youth who care so much about their looks and their hobbies. They love to shopping and spending money on their looks, sometimes even for useless and unimportant things, they don't hesitate to allocate a significant amount of their money for their social life as if they spent a lot of money to hang out in luxurious café and night clubs.
Some studies reveal with the wasteful lifestyle that millennials will compound them to buying a house in the future, even though at their young age is their chance to earn money as much as possible because of their health, creativity, and free time. Instead of making the fullest life, most of them waste their precious youth into hedonism and wasteful lifestyle.
Do I mean the millennial future will be gloomy? Of course not, if they willing to plan, they're financial in their youth into saving for the future and not spend all of their time and money in a wasteful lifestyle. Based on our research, some of the millennial habits that should be reduced:
Too Much extravagant Hang Outs
Who doesn't like to hang out? Everybody loves it, especially hang out with friends who have the same interest, talking about our hobbies and have some snacks and drink with friends is fantastic and good for our social life. However, if these hangouts are just for ineffective communication and frequently, then it won't be healthy for your finances. Sometimes bars are okay, especially if those hangouts ended with a reasonable investment plan or business agreement.
As the millennial gadget is something that can't be separated in our lives, the pace of gadget update is gone by second for now, and as the millennial, we surely want to be updated and have the latest gadget. But always renewing the device even though the old gadget could perfectly fulfill our need surely such a waste, let alone the price of gadget tend to be decreased. The gadget update is such a waste, especially if that update just for the image and personal satisfaction, to be seen "wow" in the community.
As we mentioned earlier, millennials' social life is essential, and they could spend a lot of money to maintain their social life. They love to spend time with their community and connected socially. But the harmful effects of that habit are unavoidable. First, the hang out expenses must go up, and the rivalry in the image between the member of the community must be shown too like the gadget or even the wardrobe. The problem is that not all millennials could afford that kind of lifestyle. So sometimes they take debt to afford the lifestyle that effecting in their financial condition.
Pile Up Debt
Millennials are one of the promising targets for banks or financial institutions. Their young age indicates their productivity and income reducing risk for unpaid debt because most millennials are workers with a steady income. But with bad financial management, a millennial could face problems in paying their mortgage in the bank as a credit card or other loan. If they not carefully use the debit or credit card and use it for wasteful needs, then they will end up with a pile of unpaid debt.
Too Quicky Satisfied
In this era, that is a lot of possibilities, including work-related. The millennial can have an opportunity to earn and make money from the technology. But sometimes they focus on one source of income and think that's enough. They are willing to spend their free time doing useless and hedonistic acts than to use it to earn money. Their excuse mostly is the quote "work hard play hard" as their shield to having fun.
Everything that we mentioned above is one of the millennials? If that so, then you have to think about your future. It is not impossible by thinking out-of-the-box to reduce or fixing the unnecessary habit, as we mention. You could end up as a high-net-worth at your young age.
Discipline in save money
Most people think what you save is what left at the end of the month, that is a wrong opinion. The right thing to do in saving was saving when you got the money. So when you got the money, you force yourself to save several amounts of money and maintain living until the next time you got the payment with the money left after the saving, you have to manage that left money to be able to fund your need until the next time you got money. Even better if after the time you still have money left to be added in the saving. You can try with a little amount of money, maybe 10% of the money. There is a lot of saving tricks on the internet that you can choose depends on your needs.
Make a note for every Spending.
It seems like a small thing, but make notes of every expense you make is actually a good way to keep tracking where your money goes. Keep spending money without taking notes tends to tend to make you losing track of your Spending and makes you spend unnecessary expenses and left you ended with small money or even an empty wallet at end of month. Taking notes in your Spending can give you a review of your unnecessary Spending, and you can fix it next month to make better control of your financial Spending.
Prepare your pension
Make some investment for your pension. If you carefully placed your investment at your young age, it's possible that you are going to get a good result in your old age and be one of the high-net-worth-retirement. You also can register in an insurance company, and there's a lot of link units in personal insurance for your retirement.
Limiting Your Credit Car Use
Having a credit card is good when you need easy access of money, but however it's a debt, and it has to be paid with pretty high interest, so if you use it for consumptive need, you will end paying interest for something that not even a good investment and it won't be good for your cash flow.
Follow Advice from Financial Consultant
In this digital era, it's very easy to get information about how to manage your money from a young age. Nothing's wrong to follow few tips for a financial consultant like Pillar Wealth Management that can help you to manage your income and expenses and give you a chance to be a very-high-net-worth-individual-statistics, which mean increase your wealth even in your young age. Do you want to learn more about wealth management salary? Just check out our website.
That's a few tips we can give to the millennial to manage their money so their youth won't be wasted, and they could use their time to be productive and profitable. Prepare for their pension with a stable and healthy financial condition.