Finance

Top 5 mantras for millennials to achieve financial freedom

Published

5 months ago

August 19, 2024

Top 5 mantras for millennials to achieve financial freedom

By 2030, millennials and Gen Z together will make up more than 50 per cent of India’s population. Known for making sound financial choices, millennials are much more advanced. When it comes to millennials, their investments in mutual funds, stocks, real estate and other assets are at an all-time high, for them a cookie-cutter method does not fit well and when it comes to financial protection – they opt for multiple options to put the method to madness. In the midst of the digital age’s relentless surge, millennials find themselves at the forefront of an era characterised by unprecedented connectivity and information access.

Achieving financial independence remains crucial for personal empowerment and long-term security. It allows individuals to pursue their passions, retire early, and handle unexpected challenges without financial stress. In today’s rapidly evolving digital era, leveraging technology and innovative financial tools can simplify this journey.

Let’s explore some of the top mantras to follow on this road.

Start early & invest regularly

Don’t wait for the perfect moment to begin investing—start your personal finance journey with your very first paycheck. While the retirement age has stayed the same, life expectancy has increased, necessitating a larger corpus to support a longer life. Additionally, many of us aspire to retire by 50 to pursue other interests, making early planning essential.

Consider this: if you start investing ₹5,000 per month at age 25, you could accumulate a corpus of ₹1.76 crore by age 55, assuming a 12 per cent annual return. However, if you delay and start at age 35, you’d need to invest ₹17,500 per month to reach the same amount. A 10-year delay can triple the amount you need to invest monthly. Investing early leverages compounding and the time value of money. When you’re young, you can take on more risks, benefiting from high-risk assets like equities and mutual funds.

Create multiple sources of income

Diversifying your income streams can protect you against job loss and economic downturns, while also accelerating wealth accumulation. Consider options like freelance work, side businesses, rental properties, investments in stocks or mutual funds, and passive income sources such as dividends or royalties.

During unforeseen circumstances like sudden medical emergencies, layoffs, or unexpected major expenses, having a financial safety net can mean the difference between a temporary setback and a lasting crisis. Experts recommend saving 12 months’ worth of living expenses to ensure adequate coverage.

Digital banking apps facilitate this by enabling seamless fund transfers and automated savings plans, making it easier to consistently allocate money to an emergency fund. These tools also offer features like goal tracking and notifications to help maintain regular contributions.

Eliminate debt strategically

Start by listing all your debts, including credit cards, loans, and any other liabilities. Prioritise them by interest rates, focusing on high-interest debts first, as these cost you more over time. One effective strategy is the “avalanche method,” where you pay off debts with the highest interest rates first while making minimum payments on others. Alternatively, the “snowball method” involves paying off the smallest debts first to build momentum and encourage continued progress.

Consider consolidating debts to secure lower interest rates and simplify payments. Additionally, create a realistic budget to free up extra money for debt repayment. Avoid accumulating new debt by using cash or debit for purchases instead of credit cards.

Insurance – a big must!

Before making any investment, ensure that you have adequate life and health insurance coverage. As your liabilities increase, so should your coverage amount. Prioritising insurance safeguards your financial stability and provides a safety net for unforeseen circumstances, allowing you to focus on growing your investments with peace of mind. Purchasing life insurance at a younger age offers the benefit of lower premiums, which remain constant throughout the policy term. Younger millennials too find term insurance appealing because of its simplicity and affordability, coupled with the digital era which equips them with real-time financial data, market insights, and most importantly – investment tools that can assist in making informed decisions for insuring safety and security.

All that being said, India’s millennials are still relatively new to the concept of achieving financial freedom and its imperative for them to have a roadmap in place. India has the youngest population globally. So, if our youth is financially secure, it means India’s future is also safe.

Published 19 August 2024, 01:01 IST

Related Topics:financial freedom personal finance of millennials

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Finance

KKR Real Estate Finance Trust Inc. to Announce Fourth Quarter 2024 Results

Published

4 hours ago

January 17, 2025

Press Room

KKR Real Estate Finance Trust Inc. to Announce Fourth Quarter 2024 Results

NEW YORK, January 17, 2025–(BUSINESS WIRE)–KKR Real Estate Finance Trust Inc. (“KREF”) (NYSE: KREF) announced today that it plans to release its financial results for the fourth quarter 2024 on Monday, February 3, 2025, after the closing of trading on the New York Stock Exchange.

A conference call to discuss KREF’s financial results will be held on Tuesday, February 4, 2025 at 9:00 a.m. ET. The conference call may be accessed by dialing (844) 784-1730 (U.S. callers) or +1 (412) 380-7410 (non-U.S. callers); a pass code is not required. Additionally, the conference call will be broadcast live over the Internet and may be accessed through the Investor Relations section of KREF’s website at http://www.kkrreit.com/investor-relations/events-and-presentations. A slide presentation containing supplemental information may also be accessed through this website in advance of the call.

A replay of the live broadcast will be available on KREF’s website or by dialing (877) 344-7529 (U.S. callers) or +1 (412) 317-0088 (non-U.S. callers), pass code 4697062, beginning approximately two hours after the broadcast.

About KKR Real Estate Finance Trust Inc.

KKR Real Estate Finance Trust Inc. is a real estate finance company that focuses primarily on originating and acquiring senior loans secured by commercial real estate properties. KREF is externally managed and advised by an affiliate of KKR & Co. Inc. For additional information about KREF, please visit its website at www.kkrreit.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250117176772/en/

Contacts

Investor Relations:
Jack Switala
(212) 763-9048
kref-ir@kkr.com

Media:
Miles Radcliffe-Trenner
Tel: (212) 750-8300
media@kkr.com

Finance

Finance Director Bill Poole named to Presidential Leadership Scholars Program

Published

12 hours ago

January 17, 2025

Press Room

Finance Director Bill Poole named to Presidential Leadership Scholars Program

The Presidential Leadership Scholars Program announced that State Finance Director Bill Poole has been selected as a member of the Presidential Leadership Scholars Class of 2025. As one of 57 Scholars, Director Poole will join accomplished leaders in education, healthcare, public service, business, and other sectors to learn and hone leadership skills through interactions with former presidents, noted academics and industry leaders.

For the past decade, PLS has united a broad network of established public and private sector leaders to collaborate and create positive change in their communities and across the world. Chosen for their demonstrated leadership and support of projects aimed at addressing challenges and improving communities, Scholars will participate in a six-month program focused on core leadership skills, including: vision and communication, decision making, and strategic partnerships.

“It is an incredible honor to be named to the 2025 Class of Presidential Leadership Scholars,” said Director Poole. “I look forward to interacting with and learning from past presidents and industry leaders. I am excited to work alongside peers from across the country that are dedicated to promoting civic engagement and working on issues that will improve our communities.”

In addition to visiting four presidential centers, scholars will participate in a personal leadership project addressing local and global issues.

“I am proud to surround myself with a dedicated team of public servants to help propel Alabama forward, and I am certainly glad that includes Bill Poole. It is very exciting Bill has been selected for the Presidential Leadership Scholars Program, and I know he will represent our state well,” said Governor Kay Ivey. “Congratulations to Bill as he continues taking steps to develop and best serve the people of Alabama.”

Bill Poole was appointed Finance Director for the State of Alabama on August 1, 2021. As Alabama’s chief financial officer, Poole serves as an advisor to the governor and the legislature on all financial matters and is charged with promoting and protecting the fiscal interests of the State of Alabama. He also serves as chairman of Innovate Alabama, the state’s first public-private partnership tasked with promoting entrepreneurship, technology and innovation. Poole was a member of the Alabama House of Representatives for eleven years, where he served as chairman of the House Ways and Means Education appropriations committee for eight of those years.

To learn more about the Presidential Leadership Scholars program, visit “Presidential Leadership Scholars.”

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Finance

US consumer finance watchdog fines payments firm Block over Cash App operations

Published

19 hours ago

January 17, 2025

Press Room

US consumer finance watchdog fines payments firm Block over Cash App operations

Block said the issues raised by the regulator were “historical” and did not “reflect the Cash App experience today” [File]
| Photo Credit: REUTERS

The Consumer Financial Protection Bureau (CFPB) on Thursday ordered payments firm Block to pay a penalty citing fraud and weak security protocols on its mobile payment service Cash App.

The regulator said Block, which is led by tech entrepreneur Jack Dorsey, directed Cash App users who experienced fraud-related losses to contact their banks for transaction reversals.

However, when the banks approached Block regarding these claims, Block denied that any fraud had occurred.

Cash App is one of the largest peer-to-peer payment platforms in the U.S. and allows consumers to send and receive electronic money transfers, accept direct deposits and use a prepaid card to make purchases.

“When things went wrong, Cash App flouted its responsibilities and even burdened local banks with problems that the company caused,” said CFPB Director Rohit Chopra.

In response, Block said the issues raised by the regulator were “historical” and did not “reflect the Cash App experience today.”

“While we strongly disagree with the CFPB’s mischaracterizations, we made the decision to settle this matter in the interest of putting it behind us and focusing on what’s best for our customers and our business,” the company said.

The move is one of the final regulatory actions under the Biden administration as Washington awaits the inauguration of President-elect Donald Trump. Billionaire Elon Musk, who is slated to co-head a new government agency to slash government spending, has called for the elimination of the CFPB.

The CFPB’s order includes up to $120 million in redress to consumers and a $55 million penalty to be paid into the CFPB’s victim relief fund.

The regulator also alleged that Block deployed a range of tactics to suppress Cash App users from seeking help in order to reduce its own costs.

Block’s gross profit rose 19% to $2.25 billion in the third quarter ended Sept 30, with Cash App accounting for $1.31 billion of the total income.

On Wednesday, the company also agreed to pay $80 million to a group of 48 state financial regulators after the agencies determined the company had insufficient policies for policing Cash App.

Published – January 17, 2025 09:14 am IST