In this episode, we will be discussing how the dynamics of financial activities have changed from one generation to another. How the rise of social media and the fear of missing out forces Millenials and Gen-Z to spend more than necessary. David also offers honest advice to the listeners about managing their finances and the benefits of budgeting.
His Mandate for Mental Health
David believes that everyone should have someone to talk to as loneliness can get depressing. He mandates that there should be outreach programs for everyone to use with professional psychologists to help people have raw and honest conversations. These can help them vent and feel good for even 30 minutes and leave a positive impact on their lives.
Problems with the New Generation and Money
David points out that the key factors separating the older generation from the younger one are social media, FOMO, and the concept of Side Hustle. The youth nowadays worry too much about what everyone else is doing and do not focus on their own goals. There is a lack of commitment to their ambitions as they watch their peers engage in their ventures. Peer pressure drives them to spend more than they need to as we live in a materialistic world where one’s self-worth is defined by the amount of material in their lives.
Quick finance tips
- David advises making a solid budget plan and sticking to it by ensuring the budget is within your income stream. If you can save without sacrificing the quality of life, then do it at your earliest.
- He also suggests engaging in small yet meaningful habits which decrease expenses, such as not buying prepackaged stuff. It is all about planning the purchase and making the purchase. Little changes in your budget can bring a significant change in your spending habits.
- Also, take your time to spend on things and avoid being an emotional spender.
- “Treat yourself” when you can but within your limits.
- Do not give in to peer pressure; know your limits and keep your budget in mind no matter what your activities are.
- Uses Excel to make a budget chart.
- Check your Bank Statements to see and recognize a pattern. Tally up your expenses and what’s happening in there.
Emotional Spending
Yes, people tend to spend money emotionally because they don’t want to miss out, so they spend no matter the cost. Many people do not focus on accessibility and buy items out of their budget range, avoiding the Debt to income ratio. Peer pressure and FOMO keep kicking in and make irrational decisions as everyone wants to look trendy and follow what others are doing.
Getting Married Young
David advises the youth to choose a life partner who is disciplined in the concept of spending. A sense of monetary discipline is significant in the long term as your partner should be familiar with the concept of financial savings. They are imperative in building a house, a family, and a business. A careless partner will spend irrationally on temporary and useless things such as a destination wedding. So, when getting married, one should be careful while choosing their partner and the wedding expenses themselves.
For a detailed podcast on the topic, make sure to subscribe to us at Apple Music and Spotify @RunThriveSurvive by Ciara Carter. I offer coaching services, too, and you can reach out to me at runthrivesurvive.com or patrion.com/runthrivesurvive.
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