Gen-Z Must-haves & Must-saves
Are you a Gen-Z starting to journey the world of finance? Manage your spending habits with the help of Cleo Loque (founder & CEO of Hiraya Pilipina) as we give you tips on how best to spend your money, jumpstart your savings, and how to balance them.
Photo from: Instagram (Cleo Loque)
Generation Z, born roughly between the mid-1990s and early 2010s, is coming of age in a rapidly changing world characterized by technological advancements, shifting cultural norms, and evolving economic landscapes. As Gen Z enters the world of financial independence, they face a unique set of opportunities and challenges. From must-have investments to essential savings strategies, we will explore tips for making the most of your money, jumpstarting your savings, and maintaining a healthy balance between spending and saving.
Must-Haves:
1) Digital Tools for Financial Management
Gen Z's affinity for technology is a boon for managing finances. Utilize budgeting apps, investment platforms, and digital wallets to track expenses, set savings goals, and automate transactions for a seamless financial experience.
2) Health and Wellness Investments
Prioritize your physical and mental health. Invest in nutritious food, fitness memberships, and activities that promote well-being. A healthy body and mind are essential for long-term success.
3) Education and Skill Development
Consider education as an investment, but it doesn't always have to mean traditional college. Explore online courses, workshops, and certifications that enhance your skills and employability in a rapidly changing job market.
4) Quality Networking and Relationships
Building meaningful connections can be a must-have asset in your career and personal life. Attend networking events, join professional organizations, and nurture relationships that can open doors to opportunities.
5) Eco-Friendly and Sustainable Purchases
Support eco-friendly and sustainable brands and products. While they may cost more upfront, they often lead to long-term savings and contribute to a greener future.
“To be a good giver, first be a good receiver.”
Must-Saves:
1) Emergency Fund
Establish an emergency fund equivalent to at least three to six months' worth of living expenses. This fund acts as a financial safety net, providing peace of mind and protection against unexpected setbacks.
2) Healthcare Savings
Rising healthcare costs can be a burden. Having a designated healthcare fund or insurance coverage can help cover medical expenses, ensuring physical and financial well-being.
3) Investments for
Wealth Growth
Invest your money wisely to build wealth over time. Diversify your portfolio with stocks, bonds, real estate, or mutual funds. Seek guidance from financial advisors or robo-advisors to make informed investment decisions.
4) Sustainable Living
and Savings
Sustainability is not just a trend but a long-term necessity. Gen Z should save by adopting eco-friendly practices, reducing waste, and investing in sustainable products and technologies to protect the environment for future generations.
“Practicality is hinged in our priorities.”
What should be the balancing act?
1) Create a Budget
Establish a monthly budget that accounts for both essential expenses and discretionary spending. Allocating a portion of your income to savings and investments should be a non-negotiable part of your budget.
2) Set Financial Goals
Define short-term and long-term financial goals. This could include saving for a vacation, a down payment on a home, or early retirement. Having clear goals helps you stay motivated and focused on balancing your spending and saving.
3) Automate Savings
Set up automatic transfers to your savings and investment accounts. Automating your savings ensures that you consistently save a portion of your income without having to think about it.
4) Practice Delayed Gratification
Before making a non-essential purchase, give yourself time to think it over. Delaying gratification can help you differentiate between impulse buys and meaningful expenditures.
5) Regularly Review
and Adjust
Financial circumstances change, so your financial plan should adapt accordingly. Regularly review your budget, investment portfolio, and financial goals to ensure they align with your current situation and aspirations.
Balancing spending and saving is a crucial skill for Gen Z to master as they embark on their financial journey. By prioritizing must-have investments, building robust savings, and maintaining a healthy equilibrium between the two, Gen Z can achieve their financial goals and enjoy a secure and prosperous future. Financial success is a marathon, not a sprint, and every smart money move brings you closer to your dreams.
From Episode 156 of Adulting with Joyce Pring: “Gen-Z Must-haves & Must-saves ft. Cleo Loque”