Top 10 New Money Making Habits For Millennials In 2021 RANKING: From Day Trading To Influencing What You Do With Your Money!
Millennials are apparently the most privileged generation of all time in terms of access to the means to manage and earn money. Now, with the click of a few buttons, or in a matter of minutes, they can invest, save, spend, and do a lot more that was unimaginable just a few years ago. However, with each new financial privilege comes new financial needs that keep changing. Especially for millennials, their financial needs are changing rapidly. And, hence their habits of earning money.
For example, until March 2020, before the start of the Covid-19 pandemic, millennials in India were famous, or rather infamous, for splurging in a new age lifestyle that required heavy spending. But, unlike older generations, millennials weren’t shy about spending big even if it meant going into debt through credit card payments or personal loans. However, Millennials’ financial priorities changed rapidly as soon as the pandemic began to show its ugly colors, leading to job losses and pay cuts across the country.
India has one of the largest millennial populations in the world, forming around 34% of the country’s population. Millennials have grown alongside rapid technological change and therefore understand the ease of digital platforms. Even when it comes to investments and money matters, they increasingly prefer digitally purchased assets that match their busy lives and aspirations.
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While the pre-covid era for millennials was less about saving and investing than spending, in the post-covid world they seem more interested in making and saving money fast by everyone. possible means, including risky stock market betting and unregulated cryptocurrencies.
Being at home during lockdowns and easy access to investing apps has given wings to the new money-making habits of millennials, which aren’t limited to stock markets or cryptocurrencies. On the contrary, they happily explore many other options. This article explains 10 of these new lucrative habits of millennials:
1. Day trading, stock market investment, IPOs
Lockdowns and working from home have given many millennials enough time to keep up with developments in the stock market. Access to easy-to-use mobile apps like Zerodha, Groww, and Upstox has made day trading a lucrative secondary income option for millennials.
Indian millennials are also optimistic about IPOs of new-age companies like Zomato, Paytm, etc. They are not afraid of stock market risks
2. Invest, trade crypto-currencies
Even though cryptocurrencies are not regulated in the country, millennials are the biggest force behind the popularity of these new-age digital assets in India. Crypto Kanoon co-founder Kashif Raza says easy access to crypto exchanges through mobile apps and the active interest of millennials like Elon Musk has pushed millennials into crypto again. -coins.
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Millennials in general are drawn to a culture of earning passive income on their time and investments. “Crypto investments are very popular for this age group, in fact over 50% of our investors are millennials. Long-term returns from crypto assets like bitcoin and ether are one reason for this growing interest, ”says Avinash Shekhar, co-CEO of ZebPay.
Another is that Millennials are open to learning about this new technology (Blockchain) and exploring the new opportunities that come with it – decentralized or challenge finance, staking, liquidity pools, NFT are such new and trending opportunities, ”he adds.
Gaurav Dahake, founder and CEO of Bitbns, noted “exciting new investment strategies” that many people are using primarily among young people. He says that as age progresses, their investment model changes as well. So, for example, as teens and early twenties become more involved in crypto trading, seniors are considering more evolved forms of investing such as a fixed income plan or a multi-goal aligned SIP.
This is probably the best time when people can demand a paycheck commensurate with the skills they have mastered. Rapid technological advancements make college apprenticeships redundant with each passing payroll, creating a high demand for skilled people in the job market. Millennials have sensed this opportunity and are improving themselves in any way they can. No wonder digital skills enhancement and education platforms like Upgrad have seen a massive increase in enrollment numbers.
While upgrading skills is something millennials need to spend out of their wallets, they willingly do it to look for better paying jobs in the market.
4. Influence the financial habits of others
Many millennials have started influencing the money-making habits of others through online platforms like YouTube, Twitter, and LinkedIn or through blogging. In the process, they not only gained hundreds of thousands of regular consumers for every content they put online, but also made real money. It’s no surprise these days that anyone who knows anything rushes out to distribute their investment, save, and earn Gyan money through videos, articles, and even podcasts.
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5. Create value from the concert economy
Multiple online platforms allow Millennials to earn extra money outside of regular work by making the best use of their skills through freelance gigs.
According to Priti Rathi Gupta, founder of LXME, as millennials need to work on their spending, savings and long-term investing habits, being more money-conscious. One lesson that can be learned is to take advantage of income opportunities. Today’s concert economy has enabled the generation to effectively use their skills and abilities and create value.
7. Automate wealth creation
Millennials are creating a new habit of making money by automating the process of investing or building wealth itself!
Swapnil Bhaskar, business manager at Niyo Money, told FE Online: “Currently, they are doing this by setting up a direct debit for their mutual fund investments closer to the date their salary is credited. In the future, they will be able to set up triggers for automated investing throughout the month based on transactions in their linked savings account.
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8. Digital loan
Digital lending through various online platforms has become one of Millennials’ many new lucrative habits.
In fact, a recent poll from the LenDen Club found that millennials dominate both digital lending and borrowing on its platform. Bhavin Patel, Co-Founder and CEO of LenDenClub Says P2P Lending is One of the Fastest Growing Financial Industries in India Due to Its Technological Prowess, Platform Simplicity, and Immunity to market volatility.
Explaining why millennials are interested in digital lending, Patel said, “Millennials today are driven by the need to constantly learn about new avenues of investing and all things digital. They recognize the importance of having a diversified portfolio that combines a long-term investment strategy and double-digit returns to generate substantial passive income. With declining returns on fixed deposits and the unpredictability of stocks, they are constantly on the lookout for new avenues of investment.
9. Invest in digital gold
According to Ashraf Rizvi, founder and CEO of Gilded, digital gold is increasingly becoming the asset of choice among millennials for creating and protecting wealth. Millennials are looking for ease of investment and higher returns, but also assets that help them meet their ambitious needs and build a good body of urgency.
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“This tech-savvy generation emphasizes practical and rapid applications. Since digital gold is available on your smartphone, millennials 24/7/365 gravitate towards the convenience and security it offers, especially in light of the pandemic. Not only does digital gold benefit from ease of buying and selling, but the user also avoids middleman fees or resale fees. In addition, as digital gold allows the purchase of small quantities (starting at just 1 gram), the budget is not a constraint for the young professional or the early-career saver, ”said Rizvi.
10. Possess fractional properties
Fractional ownership of property has become a new investment concept that millennials are interested in. Shiv Parekh, founder of hBits, says fractional ownership “is an investment tool that is best suited for young people because it brings better and secure returns, as commercial real estate (CRE) offers higher returns. It offers a steady stream of income which can be generously added to existing income. Long-term leases and rent increases ensure a constant flow of inflation-adjusted income so that they are financially independent. Parekh says hBits has seen around 30% of fractional asset investments undertaken by millennials and it’s increasing.