‘Do-it-myself’ mindset: Millennials’ path to financial independence
As they strive towards achieving fulfilling financial independence, millennials are taking matters into their own hands and making sacrifices where necessary, according to the Merrill Edge Report for fall 2017, a nationwide semi-annual survey providing an in‑depth look at the financial concerns and priorities of Americans.
In other words, millennials are pioneering a unique do-it-myself mentality in dealing with current financial matters. “When asked what they can rely on in 20 years, millennials’ top response was their savings account (66 percent), a self-created and funded source,” the report reads.
They have simply come to trust in their own stewardship more than anything else, including both their significant other and friends. And in order to facilitate such self-sufficiency, they have come to make significant sacrifices that could go up as far as cutting back on outings, skipping yearly vacations or even saving more than half of their paycheck!
On the contrary, this mindset is far less prevalent among older generations. “When asked what they will be able to rely on in 20 years, most Gen Xers reported their 401(k) account (71 percent) while baby boomers reported pensions (54 percent) and Social Security (50 percent),” the report elucidates.
This being said, the report also suggests that Gen Y may nevertheless tend to play it safe with their everyday investments after witnessing the deteriorating impact of the Great Recession on their older counterparts, while a whopping 80 percent foresee yet another recession in their lifetime.
“This anticipation may be driving millennials to take a conservative approach to their finances as they view themselves as more financially conservative than their parents (46 percent) and even their grandparents (35 percent),” the report says.
Yet despite such existing doubts, millennials do not feel discouraged about their future just yet. In fact, respondents conversely see themselves as more successful, responsible and forward-looking than older generations.