Financial freedom is something Gen Z is currently struggling with. Youngsters between the age of 18 to 25 find themselves in a place where they have no idea about their financial future. Blame the lack of parenting or the education system, the young generation lacks financial literacy. As they grow up, they find out that they are not educated enough to know the mechanism of money. In other words, they have no idea how money works, how to save money, etc. As a result, they become trapped in financial crises.
To counter that, we have tried to extend a helping hand. We have reached out to one of the top-class financial planners of our time: Muthu Krishnan. Muthu is a Bombay-based certified financial planner who gives money lessons and sings the songs of financial literacy – especially among the young generation. In our series of questions, we have asked him about the financial advice he has to impart on the young generation. However, what remained the center of focus in our conversation was financial freedom. It is something that professional financial planners like Muthu sing songs of.
Here is the crux of our conversation with the certified financial expert:
- Earn More & Save Early
One of the fundamental viewpoints of Muthu is that he emphasizes the young generation to earn more in their 20s. Once they earn more, the next step is to kick off saving money. The top-class financial planner argues that you will not be financially independent unless you do not make lots of money from an early age – and save accordingly.
So, first thing first: Find out ways to make money. Once you find a decent way of making money, learn to save every single penny. If these two are accompanied, you will be unstoppable – as financial independence will follow by default. In turn, you will age with dignity and your future self will thank for what you did for yourself in your early years.
2. Do Not Invest Borrowed Money
Another worthwhile financial piece of advice that Muthu wants every youngster to know is that borrowed money is not your money. By using pledged money, you can not be financially independent. Rather, you will enslave in the chains of debts.
So, if you have an investment plan in mind, do not go for it by borrowing money. Rather, go out there, earn money, increase your savings, and invest that money. This is where you will become financially independent. After all, it is your hard-earned money that you have invested and you will be the only recipient of the rewards of your investment.
3. Age With Dignity Without Even Doing Anything
If you follow the above two points, you will be in a position to make money without doing anything. This means that you have made money, saved a fair bit, and invested it into a portfolio.
In turn, this portfolio pays you off without you even doing anything. Thus, the cash flow will boost, and you will age with dignity.
