Seeing present situation, they want to be secure
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. “My relative lost his job due to the pandemic and his family faced a lot of difficulties.”
“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.”
Aviral Agarwal, 23, an engineering graduate who will begin working as a mechanical engineer in June, has started planning his finances. Asked about the importance of being financially secure, he informed The Observer: “It gives you a sense of security and not just in terms of money but also mentally and emotionally.”
Asked how he plans to save money, he shared: “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.”
According to 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 said young Indians focused on their financials in 2021 with “investing money” coming up as one of the important resolutions of the year. While 57 per cent of the respondents between the ages of 18 to 30 said they would like to invest better, 21 per cent shared they believe in saving more.
Abhishek Kumar, 28, the 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.”
Asked how a youngster should save his /her money, she 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 Expresssaid 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, according to 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.