The millennials' preferred strategies for achieving financial independence



Building a solid financial base has become a challenge for new generations, but this trend may be about to be reversed.


The year 2021 opened with an impressive announcement. On the 20th, Mexicans born between 1980 and 1995 were so indebted that the total sum of their commitments exceeded - in most cases -

30 percent of their monthly income

. Faced with a scenario like this, the risk of non-payment is evident. The curious thing is that this is not an isolated event.

The new generations are in a similar situation regardless of their country of origin. But what is the reason for this phenomenon? According to specialists, not only do millennials behave differently financially than their parents or grandparents - that is, past generations - but they also lack the financial knowledge necessary to

manage their budget responsibly

.However, this picture may be about to change. Many young people are determined to improve their current account balance, and

new technologies

are their preferred platforms for doing so.

Traditional versus freelanceemployment

According to data published in 2021 by the Mexican Institute of Competitiveness, the country's freelance workers are

paid 36% more

than dependent employees. This figure is attracting the post-milleniums, who seek to increase their income to achieve independence.But is it possible that this new work scheme will outperform traditional jobs? Although it is not a reality today, everything points to it.

It is assumed that more than 40 percent of people between 25 and 35 years of age

will give up their current jobs in 2021

to put their hopes in other forms of work. What attracts them to the freelance world - in addition to remuneration - are factors such as the diversity of projects, payment in foreign currencies, flexibility in working hours and the opportunity to live anywhere in the world.And this is where new technologies come in. Remote workers rely on

wallets, online payment platforms and neo-banks

instead of traditional banking because it allows them to receive payments in euros, dollars, Mexican pesos, etc., and to exchange them at a very attractive rate.

Entrepreneurship and training with online loans

According to

Fondeadora

, 90 percent of Mexican millennials are not satisfied with the services offered by financial institutions. This has led them to migrate to other alternatives that are more profitable -and comfortable- for them because they offer perfect credit lines to invest or buy equipment for their new job.

One of their preferred alternatives is to apply for loans online with Moneyman; in less than 26 minutes they can obtain a personal credit without having to go to the bank or fill out complex forms. The only requirement - besides having an e-mail address, a phone number and being Mexican or a legal resident - is to be over or under 70 years old. The same is true for Préstamo, a website that attracts more and more users every day. The success of these new platforms is not unexpected.

In the end, they provide small amounts of money that Generation Y can use to meet their financial commitments, start a business or pay for courses and specializations that will lead them to

access better paying projects

.

Sarah Smith
Sarah Smith

Certified travel expert. Avid pizza buff. Explorer. Evil tv buff. Award-winning internet lover. Lifelong zombie ninja.