Retirement Plans for Gen Z Gals
You read that right! One would like to think that retirement would be the furthest thing from the minds of Gen Z. But apparently not. Specially women. Women of that age - 20 somethings - who were not thinking about finance in any way are now planning for their retirement! These ladies are looking into their money matters with renewed interest. They have realized the importance of cash -flow to lead a good life; and for once they are not depending on anyone for it. They are owning their incomes, maximizing the present and planning for their future.
Let’s examine this positive change in depth.
1. There is a greater openness with Gen Z and money discussions. They don’t feel that talking about finances is rude or impolite. Gone are the days when society frowned upon frank conversations about money.
2. Social media is a guiding force for the Gen Z girls. This generation lives their entire lives on social media and knows how to get the maximum benefit from it too. The exposure and information they get is phenomenal which may not have been accessible to them in the ordinary course.
3. Gen Z women are not a gullible lot; they ask and corroborate the information they receive from different sources. If you can ask pertinent questions you are bound to be better informed. Many avenues of knowledge can be confusing if not cross checked.
4. They understand the power of compounding and how it changes the game if you start investing early. Basically, if you invest when you are in your 20s and stay invested, your amount keeps multiplying year after year. For those who want to learn about this incredible method please refer to our other newsletters.
5. Planning for retirement, starting their own business or saving towards children’s education. Whatever the goal maybe, the fact is that it all requires thought and foresight. One needs to have clarity of their financial needs and aspirations. The sooner that is achieved, the sooner one can start their financial journey. That puts the Gen Z girls much ahead of everyone else, because time is on their side.
- Regularly visit your investments – This means keep a check on the performance of your various investments. If there’s any changes in the market, one should take heed of it and adjust the portfolio accordingly.
- Increase the yearly contribution – As you get increments or do better in your business, the percentage of your income that you invest must also increase. Unless you boost your contribution, you will not be able to keep pace with the rising inflation. Also, with an increase in one’s income one tends to start spending more and more. This behavior is called lifestyle Inflation (discussed thoroughly in newsletter dated - ) and hugely detrimental to financial growth.
Women shouldn't shy away from discussing finance. This is the only way to break the walls and set a level playing field. Let's be unstoppable. We've all heard the saying, "Be the change you wish to see in the world." This is for all the ladies out there, come join FIKAA to empower women so they can learn, invest, connect, and grow together.
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