Gone are the days of being afraid of debt, but the third thing is that everyone is stuck
After making her first $1 million on Wall Street, 27-year-old Vivian Tu realized that even the highest-paid investors may not possess a personal financial skill set. basic multiplication.
So she started sharing basic personal finance and investing tips. However, Vivian Tu quickly realizes that young people are facing different economic problems than previous generations. Traditional strategies from a few decades ago may no longer work for Gen Z.
According to Vivian Tu, here are 4 outdated advice Gen Z no longer listens to.
1. Work two jobs at once to pay off debt
Vivian Tu shared that people in the previous generation often forget that the cost of living in the present is already exponentially higher. And the fact that the advice of getting an extra part-time job to deal with major financial problems, such as debt, may no longer be relevant.
“When my parents went to university, the tuition cost ‘a banana’ or ‘a handshake’‘, she humorously similes. “However, now to go to college at the age of 18, you will have to have a signed student loan document that you have to have a salary of several hundred million after graduation to pay it.”
Sometimes working three or four jobs at once won’t help Gen Z pay off their student loans. Therefore, they get tired of hearing such advice. Instead, they aim to improve their own capacity, invest money to make money.
2. Stop eating out to save money
“I hate that advice”Vivian Tu admitted, “I think the older people have taken the advice that if you give it your all, if you do all the right things, you will achieve the American dream. However, things have changed a lot.”
Similar to advice on getting a part-time job, young people hate being told Don’t eat out to save money. Although some Gen Z people cut back on eating out. However, they still keep some in the budget for eating out with friends. And it’s simply the way to enjoy their life.
3. Loyal to a full-time job
Millennials and Gen Z are at the forefront of The Great Resignation movement. This is a movement of workers leaving their jobs, demanding better pay, benefits and better treatment.
Contrary to the traditional advice from previous generations, The Great Resignation really creates the perfect environment to negotiate a better salary. Besides, this movement serves as a source of motivation for young people to apply to another company with a better income in the same position.
“Loyal to your work only if you are truly paid for your time and effort. If you stick with a job for too long, you can lose hundreds of millions of dong because they’re sure you won’t be able to leave. Instead of changing jobs to improve your income, you will always stay in one position and hardly get a raise. The only thing you can do is try to save money for a better life.”
4. All debts are bad
Because the younger generation is often tied up with student loan debt, they are often advised that all types of debt must be paid off immediately. You even have to avoid getting into debt. However, Vivian Tu argues that we need to start normalizing debt.
Certain types of debt, like student loans or credit cards, can keep you from reaching your financial goals if you ignore them.
On the other hand, mortgages or business loans can be beneficial in building the life you desire. She explained: “Even though the rich can buy a house with cash, they still use mortgages often.” With an interest rate of 2%-4%, Vivian Tu thinks the rich will pay as little as possible up front on the home, using the rest to invest, such as the stock market.
“Debt is not morally good or bad. Just like an investment or savings account, debt is a tool. And young people need to learn how to use it.”
Photo: synthetic
at Blogtuan.info – Source: Kenh14.Vn – Read the original article here
