While the golden rule of financial management is that one should avoid diving deep into loans and liabilities, somehow the millennials seem to have a different idea towards this. A recent report by Mint has stated that there has been good amount of borrowings by millennials in 2019 and 25% of this money were borrowed for “Paying Bills”.
I was really surprised to realise this because even after talking so much about Personal Finance, these young minds are playing around with money like nothing else. Other purpose of borrowings were Weddings, Medical Expenses, Education, Vehicles, Shopping, Rent Deposit and Travel.
This actually made me think that do we really need to borrow funds to pay our bills or go shopping??
The fundamental purpose of loans is to provide help with heavy expenses like weddings, education or purchasing assets. But in reality, the situation looks different. This is possible only in 2 cases,
1. Not interested in Financial Planning: While it is recommended to follow a budget while managing your income, it may happen that this set is not implementing this.
2. Lack of Personal Finance understanding: They have no idea what it is to save for yourself. There is no planning for the future needs whatsoever.
To all the millennials out there, reading this. Paying Bills is an obvious expense against your utilities, hence keep that money as a part of your necessities. Using other’s money towards your services does not make any sense.
Plan your actions rightfully and even if you want to borrow, think and go ahead. It will only add up to your liabilities and provide temporary financial resolution. In the long run, you’ll end up losing much more than usual.