In terms of financial management and earning potential. Millennials are the most privileged generation. They can now invest, save, spend, and do a variety of other things that were unthinkable only a few years ago with the click of a few buttons. Or in a matter of minutes that were unthinkable only a few years ago. However, with each new financial benefit comes a new set of financial requirements, which change on a regular basis. Millennials’ financial needs, in particular, are rapidly changing. As a result of this, their business practices have shifted.
For example, before the commencement of the Covid-19 epidemic in March 2020, millennials in India were famous, for splashing on a new-age lifestyle that entailed high expenditures. However, unlike previous generations, millennials were not afraid to spend big, even if it meant entering into debt through credit card bills or personal loans.
India has one of the world’s largest millennial populations, accounting for approximately 34% of the total population. Millennials have grown up with rapid technology advancements. As a result, like the convenience of digital platforms. Even when it comes to investments and money, people increasingly prefer digitally acquired assets that fir into their fast-paced lives and objectives.
Top Habits to develop to earn higher returns on your passive income investments
Being at home during lockdowns and having easy access to trading apps have given wings to millennials new money-making habits, which are not limited to stock markets or Cryptocurrencies. Rather, they are gleefully investigating a slew of other possibilities. 10 new money-making habits among millennials are as follows:
- Possession of Fractional Properties
Property fractional ownership has arisen as a new financial concept in which millennials are interested. Fractional ownership is an investment toll that is best suited for young people since it provides greater and more secure returns than commercial real estate (CRE). It provides a consistent stream of income that can supplement existing revenue significantly. Long lease contracts and rent escalation ensure a consistent supply of inflation – adjusted income, allowing them to be financially self-sufficient. It has also been found that millennials invest approximately 30% of their income in fractional assets, and this figure is rising
- Day trading, stock market investing, and initial public offerings (IPOs)
Lockdowns and working from home have provided many millennials with adequate time to monitor stock market events. Day trading has become a lucrative side income option for millennials thanks to the availability of simple-to-use mobile apps.
- Investing in and Exchanging Cryptocurrencies
Even though Cryptocurrencies are not regulated in India, millennials are the driving force behind the adoption of these new-age digital assets in the country. In general, millennials are lured to a culture of earning passive income from their time and investments. Crypto investments are particularly popular among this age group. In fact, millennials account for more than half of our investors. Another factor is that millennials are eager to learn about this new technology (Block chain) and the new opportunities that it brings – decentralized finance or Defi, staking, liquidity pools, and NFTs are all new and trending options.
- Professional Development
It is most likely the optimum time for people to demand a salary commensurate with their abilities. Rapid technological advancements are rendering college education obsolete with each passing pay period, creating a high demand for qualified workers in the labor market. Millennials have seen this potential and are upskilling themselves in any way they can.
- Influencing the financial habits of others
Many millennials have turned to internet platforms such as YouTube, Twitter, and LinkedIn, as well as blogging, to influence the financial habits of others. They have not only earned hundreds of thousands of regular consumers of every piece of content they have published online, but they have also made actual money in the process.
- Adding value to the gig economy
Multiple internet platforms enable Millennials to supplement their regular income by making the greatest use of their skills through freelancing work. While millennials must improve their spending, saving, and long-term investing behaviors, they must also become more financially conscious. One thing they can teach us is how to maximize our earning potential.
- Automating the generation of riches
Millennials are instilling a new money-making habit by automating the process of investing or wealth development. They are now doing so by setting up auto-debit for their mutual fund investments closer to the day their salary is credited. They will be able to set up triggers for automated investment throughout the month depending on transactions in their linked savings account in the future.
- Online Financing
Digital lending via various online platforms is one of the many new money-making opportunities for millennials. In fact, according to a recent survey, millennials dominate both digital lending and borrowing on its platform. Due to its technological prowess, simplicity of the platform, and immunity to market volatility, peer-to-peer lending is one of India’s fastest-growing financial industries. The need to constantly educate themselves on new investing options and all things digital drives today’s millennials.
- Digital Gold Investing
Digital gold is quickly becoming the asset of choice for millennials looking to build and safeguard wealth. Millennials seek ease of investment and higher returns, but they also seek assets that help them meet their aspirations and serve as an emergency fund. This technology savvy generation places a premium on time-saving applications. Because digital gold is available on your smartphone 24 hours a day, 7 days a week, millennials are drawn to the convenience and security it provides – especially in light of the pandemic.
Conclusion
It’s not easy to start a side business or figure out how to invest your money when you’re short on time, but the results is well worth it. The money you generate from passive income will surely put you well on your way to meeting your financial objectives and bringing you one step closer to ultimate financial freedom. Find out where you stand financially if you’re wondering how your finances currently stack up. Whatever the outcome, Asset Yantra’s advisors will help you get there. Asset Yantra & Gak Group is a Wealth Tech platform that provides real estate investment opportunities with IRRs ranging from 14% to 21%.
9 Investment Habits to Develop for High Passive Income FAQs
Dividend-paying stocks are the ideal passive income investment. After outperforming growth stocks during the epidemic, dividend and value equities are making a comeback. Dividend stock are often more mature corporations that have passed the rapid growth period.
Wages and salaries, self-employment income (farm and non-farm), government transfer payments, investment income, and other income are the 5 components of income.