When we save, save and save, have we ever though about what would happen to the savings? Who will spend our money in future? Hopefully there’s enough for us and enough for whoever we intend to give the savings to so that they could have a good head start for their future.
So many millionaire millennials today!
I read an article saying that just within the United States alone, there are more than 600,000 millionaire millennials. 93% of millennial millionaires have a net wealth between approximately $1 million and $2.5 million. (That’s between RM4.14 million to RM10.34 million). The report says, “The difference between the millionaires of the early 1980s and the ones being created today is that many of them stand to inherit even more wealth from their baby boomer parents, who are considered the wealthiest generation in history.” Do read the full article in cnbc.com here.
How many of these rich millennials are there in Malaysia?
There are no such reports for Malaysian millennials that I have found yet. However, the baby boomers in Malaysia who saved a lot of their wealth will most probably be passing them on to their kids the Generation-Xers as well as the Millennials. The Gen-Xers, if they are like me will most probably not be spending most of the wealth but the millennials, I do think they will spend what the baby boomers did not spend. Even if we assume they will keep most of it, well, a large portion will now be spent. Things which it will be spent on? Endless stuffs yeah.
Millennials have their own definition of ‘success’ too
From their own definition of a ‘well-deserved vacation,’ to an ‘ego-boosting new car,’ or even a ‘my very own property’ in some good locations, the millennials will be spending their newly given wealth and this will definitely help the economy. Idle money in the bank have no multiplier effects to the economy yeah. Only when the money is spent that it will propel the economy forward. So, in my opinion, thanks to the millennials, the economic growth should be continuing with the continuous transfer of wealth from the baby boomers to the millennials.
Still far away from actual retirement
I am nowhere near retirement age but I think I will prefer to spend a lot of my wealth when I stop working and will not just pass on everything to my kids. I think it will mostly be used to travel the world. So, I will have to stop working when I am still healthy and not when I could no longer work. However looking ahead, I think we are going to have a continuous economic growth from the buying contribution of the millennials. Property developers may want to focus on what they need or want and build them accordingly.
After the millennials, what’s next?
Beyond the millennials? It will then depend on the population growth. Some have predicted a population collapse. What’s that? Earlier article here. Just remember yeah every generation will be very different from the next. Many baby boomers are used to saving. However this saving money trait is no longer common today. In fact, when we look at how even people with RM10,000 household income could not get a loan of RM400,000 approved, we should already see the differences. Stay positive and happy spending! (Of course, they will still need our help)
Next suggested article: Buying a property while on holiday, would you?