I am seeing reports like these more and more that most of the the GenZ and Millenials are living on debts and a lot of people are defaulting the loans. This is mostly contributed by the social media, people are seeing the lifestyle of these influences and trying to have the same lifestyle and thus to have that they are taking more and more debt.
PC: Outlook.com
I know there are a different section of the GenZ who is very eager to retire early and saving life anything and on the other hand there are people who are living on rent. This is mainly because of the income parity. The people who are earning more are actually saving mote so that they can have more and retire early. Whereas people who are earning less know that they cannot retire early and thus saving for them as of now doesn't make sense. So the best thing to do is to enjoy the life and thus take the debt either from credit Card or from personal loan and fund those expenses.
As I said social media is again one of the major contributer of this. People see new things in the social media and they are trying to get them for show off or other things. For example, in the social media or even advertisement it is shown that when you get a good bike, you can ride with girls. And thus people are rushing towards buying the bike out of their budget because there is a loan.
Also, if their friend is taking an expensive bike, they will take either that one or even more expensive because they wanted to look cool and to show off. And that is not for bike but every other things, like phone, clothes, travellinbg etc. And this is making a dent on their overall expenditure and they have to take debt to fund these expensive items.
I would say that we all should enjoy with our money and thus we should have some money from our salary as discretionary spend, but again we should only use that money and not borrow more because then our financial health would be in a mess.
If you would like to learn about Finances, do checkout My YouTube Channel where you will learn about Finances, Stocks, Investments Advices, Passive Incomes Sources and Much More.
