How Important Money is for the "Digital" Millennials?
"Money is only top 21 on the list..." These were the words of a young Balinese man when I asked him about his priorities. For him, inner peace is paramount, and once achieved, it allows for the expression of happiness and love. Priorities such as family, care for others, belief in karma, and the search for truth follow closely behind. This profound perspective was a significant takeaway from our conversation.
"Money is easy to make...." This is a line from a very successful man I know. He started from scratch. From his small town in Philippines, he worked overseas, from US to Singapore until finally becoming a million dollar earner in one of his businesses.
Millennials have a distinct approach to money that significantly impacts their financial behaviors and income potential. This generation sees and uses money differently, driven by unique motivations and goals. Here’s a deeper dive into how millennials perceive and manage their finances:
1. The Psychological Wallet of Millennials
Millennials possess a different psychological approach to money, which influences their earning potential. They consider not just the act of making money but also the purpose behind it and the beneficiaries of their earnings. Their financial decisions are often guided by values and objectives rather than merely accumulating wealth.
2. Prioritizing Personal Growth Over Wealth
While millennials are indeed profit-oriented, they place a higher value on personal development. Investing in themselves—through reading, networking, traveling, and enjoying life experiences—is seen as the most significant investment they can make. Given the chance, they will opt for opportunities that enhance their perspectives and skills.
3. Money as a Means, Not an End
For millennials, money is merely a tool to achieve their goals. They are highly goal-oriented and focus on the end result rather than their initial financial status. The journey and the desired outcome hold more importance than the starting point, emphasizing the importance of resourcefulness and determination.
4. Financial Independence and Control
Money funds their needs and aspirations, but it doesn’t control their lives. Millennials understand the disparities in income but use the internet and technology to find ethical and effective ways to make money. Whether it’s through part-time jobs or entrepreneurial ventures, they seek financial independence without letting money dictate their choices.
5. Intangible Benefits of Money
Beyond paying bills and funding investments, money provides essential intangibles like freedom, independence, and the ability to maximize one’s talents. Financial security allows millennials to choose their path and pursue their passions, making money a means to achieve personal and professional fulfillment.
6. Using Money for Good
Millennials are motivated to earn money not just for personal gain but to make a positive impact. They recognize that money can help eliminate unnecessary suffering and contribute to charitable causes. This altruistic approach drives them to seek financial success to support broader societal goals.
7. Embracing Abundance and Innovation
The scarcity mentality is a thing of the past for millennials. They believe in the abundance of opportunities created by innovation and technological advancements. Flexibility and competitiveness are key traits that help them align with and capitalize on these opportunities to achieve their financial goals.
8. The Evolving Job Market
The traditional 9-to-5 job is no longer the sole means of making money. Remote work, freelancing, and gig economy jobs are becoming mainstream. Millennials are paid through platforms like PayPal, Stripe, and even Bitcoin. We get jobs through UpWork or other platforms now. This trend will continue, rewarding those who invest in digital skills and adapt to new work environments.
Conclusion
The evolving economic landscape should not be feared but embraced. The traditional job market has given way to a more flexible and diverse economy. Millennials are leading this transformation, leveraging digital advancements to create new opportunities and redefine financial success.
Reflecting on the post-World War II job economy, it’s clear that economic shifts are not new. Farmers, fishermen, and various service providers have been joined by digital marketers, virtual assistants, and online educators. The future will see even more roles like network marketing professionals, bloggers, and cryptocurrency miners.
The insights shared here might not apply universally, as perceptions of money vary by generation, social class, and individual mindset. The goal is to educate and inspire, fostering a broader understanding of the dynamic relationship millennials have with money. Join the discussion in the comments below and share your thoughts on this evolving financial landscape.
