Many experts keep on saying that millennials must invest to establish their wealth and be financially freedom. However, what is the basic reason why millennials must invest?
Many publications about what to invest, how to do so, and even the strategies exist. However, they forget to elucidate the basic reason to do so, which is the ‘why.’
Unfortunately, little to no articles disclose the real, fundamental reason of why they should do it. Accordingly, knowing the real reason is important to better motivate people in doing their cause.
The same goes for millennials. To motivate and wake their interests in investing, they need to understand why they have to do so.
Actually, there are many reasons why they do have to so. Of those, the arguably most fundamental reason is for they have become a sandwich generation.
So, what is a sandwich generation and how investing helps millennials avoid it?
Also Read: Financial Literacy for Millennials
Millennials, a Reason to Invest, and the Sandwich Generation
Millennials are prompt to becoming the next sandwich generation after gen X. Sandwich generation refers to the age of population that has to support, often financially, the previous generation, ageing parents, and the next generation, growing children.
The phenomenon does not happen because of the millennials themselves. It is, accordingly, thanks to their parents who did not fully prepare their own financial freedom in the past.
Due to their poor preparation, the next generation has to suffer from taking care of them financially while, at the same time, taking care of their children. This causes millennials to potentially have late retirement as they have to work really hard to cover the expenses they need to create.
To prevent that from occurring, investing is one of the option to put their current wealth to work, enabling them to generate money passively for their future. That way, they will attain financial freedom sooner and, in the long run, escaping their fate to be a sandwich generation.
