From an early age most of us hear about the need to save money. A percentage of your budget should include savings, long term and short term. A survey done in 2018 by the Bank of America showed that very few millennials (Age 18-24 ) had at least $1000 in their savings account. The same survey showed over half that age group had no money saved at all. Why is this age group so prone to not investing or saving for their future? I want to present a couple reasons I believe that influence this group in the direction they are going.
They are young. Some of us forget what it is like to be (18 to 24 years of age) and so we judge this group with a different lens. The problem millennials will encounter is the society they live in is expensive, real expensive. The percentage of their paychecks that will go to health care alone is alarming. Are they willing to bet their future on the probability they will not get sick and incur huge medical bills? They appear to be doing just that. Polls show at the low end, 54% of millennials do not have any form of health insurance.
They believe they can get rich quick. The sports gambling and lottery systems are now a multi-billion dollar industry in America. While paying for my gas in convenience stores, I see people buying ($20 -40) in lottery tickets. If you think about this $20 per week in lottery tickets would be over $1000 a year going into a savings account. The allure of quick riches is inviting to0 many young people. If we were honest most of us have daydreamed about winning the lottery and the things we would do with our money. Unfortunately, the millennials seem to be doing more than daydreaming.
Sports gambling and casino’s are financial titans in America. I remember my Dad telling me “Casino’s don’t lose money, otherwise they would go out of business”. Sage advice for the young investor, put your money in a place that gives you interest. John Lennon once said “Life is what happens as we plan for the future”. Don’t bet your future in a casino or in a sporting event, the odds are not on your side.
Finally, society portrays through television, social media, commercials and even our billboards that you deserve your best life today. I love the Samuel Goldwyn quote: “The harder I work the luckier I get”. There is no substitute for hard work and saving for your future. Don’t let the lifestyle of celebrities effect the way you live your life. True peace comes from laying down to sleep at night and not worrying how you will pay your bills for the coming month.
A bet is defined as : An agreement usually between two parties that the one who has made an incorrect prediction about an uncertain outcome will forfeit something stipulated to the other. Don’t “Bet” your future on uncertainty. Follow the examples of those that have earned and invested their money in stable platforms. The future will happen regardless of your readiness, you can bet on that.