The trend is being seen for the youth belonging to the Millennial generation that they spend more than they earn. Born in relatively rich families, there is no insecurity in these youth, due to the fear that older generation youth had essentially focused on savings.

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However, the salary of these youth is not much in comparison to the old ones. Due to this habit of spending freely, many young people are getting entangled in the debt trap. They have to face many difficulties in getting out of this.

Credit card burden:

Due to the open spending habits of my youth, I also get credit for credit card debt at a young age. 24-year-old Shahin Khan works in an NGO in Delhi, he earns 35,000 rupees per month. He spends most of the room on rent, transport, and food. Apart from this, a large part of their earnings is spent on shopping and entertainment. At the end of the month, they can barely save one or two thousand rupees. They take their credit card for big purchases and the balance goes up to 60 thousand rupees. Credit card charges a charge of 3% or more per month or 36 to 42% per year on the outstanding amount. This balance increases every month, but Shahin has the impression of his position. Today's youth is spending 35 to 40 percent of their salary on entertainment, eating out, travel etc. Young women are spending a lot on garments and cosmetics.

Get started early:

Investment does not get as much satisfaction as it gets from spending. Most young people lose their patience and can not afford to invest. If we delay investing for 5 years then there is a lot of difference. For example, if you are investing two thousand rupees per month for 30 years and a return of 10%, then your rupees 45 lakh will be funded. But starting 5 years later and investing for 25 years, you will have a fund of 26 lakh only.

Saving Less:

Money View is a Money Management App. It has more than 10 million users. In a research conducted by the researcher, 20% of the 22 to 28 year-olds find that 10% or more of their monthly income is saved. Almost 40% of the youth can save between 1% and 10%. O God, hardly find the fulfillment of your needs. The habit of reducing savings can be fatal.

Debt first:

The youth should first repay their debts. Only then can you start saving and investing. If you are paying 16 to 36 percent on your loan, investing for 10 to 12 percent returns is not a beneficial thing. You should pay the loan at a higher interest rate immediately. Existing investment and saving should be used to repay loans. This will greatly benefit you.

Loan pressure:

If you have taken any loan, always remember to repay your installment on time. Today many young people take loans at an early age. He does not pay attention to repaying loan installments on time. In case of Vehicle Loan, if the EMI is not paid for a few months and the bank is not in the contact, then the bank can seize the vehicle. There are some youths, who, in time, make money by collecting money. These young people invest with patience and get full enjoyment of life.

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