Millennials you have been caught. It seems – You are the reason for slowdown
of economy in India. No – No I am not saying that. The finance minister and our media is saying
that. Ok tell me one thing, Are you avoiding buying a house? Or much worse, Are you using Ola and Uber
instead of buying a car? Let me know in the comments, Tell me why? Why are you not contributing to the economy? Why are you not buying a house? Why are you not buying a car? What do you think Millennials? How will the economy improve? If you don’t invest in a house or a car? You know banks want to give you loans so that
they can make a good profits. You see some people took money from the banks
and never returned it. The only people who return the money are people
who buy houses or the people who buy a car using a loan from
the bank. Look I am not saying all this. The media is showing our finance minister
blaming the millennials for the slowdown in our economy. In one of the interviews finance Minister
Mrs Nirmala Sitharaman said, “The reason for Auto Sector slowdown is because
Millennials are not buying cars anymore.” Watch this, This was just a 60 sec clip from a one hour
interview. And As usual the media picked up the 60 sec
clip and run it for the full day reacting to what our minister said. You know what I feel millennials – media has
become a reaction channel. They no longer show the news. They react on, Who said what to whom? And my friends, what do you think ? Who did
Mrs Sitharaman quote, The media. Isn’t it an irony? The minister quoted some reports in the media
about the slowdown and now the media is quoting the minister for her statements. Isn’t this a blame game. An endless cycle of pointing fingers at each
other. You are smart. You don’t fall into that trap. You can see these reports from the media that
appeared even before Mrs. Sitharaman said this in an interview. Forget this fight between the media and the
government. It will remain forever because it is required
to sell advertisement. If you dont believe me check the first page
of your newspaper, what do you see? Check any news channel, How much is the news
vs. ads ratio? Look at the ticker at the bottom of the news
channel, check the ratio of advertisement. Instead of focusing on this fight between
the media and the government and the whole controversy about who said what to whom. Let us focus on the real question, Is the Millennial Mindset responsible for
the slowdown in our economy. That is an important question and we are going
to find an answer to that. But before we can attempt to answer that we
have to understand who are the millennials. Well the millennials are the people born between
1980 and 2000. Which means that they are people of the age
group of 19 Yrs to roughly 40 yrs. This is the age group we are talking about. Some are just starting their careers and other
may have already reached their midlife crisis. My friend – if you are still watching – My
Name is Amit Patel and I am the founder of this channel Musings by Amit – if you have not liked this video – then
I would request you to like this video because it will help the youtube algorithm to show
this video to more people like you – and subscribe to this channel and press the
bell icon because on this youtube channel I share a
lot of ideas, insights, tools and tactics that are related to growing your career in
a job Or becoming an entrepreneur by building a business. So coming back to the primary question, Is
the millennial mindset responsible for slowdown in our economy in India? And I am going to answer this question based
on the various reports I have read and from my observations when having a conversation
with the millennials. And before we talk about the slowdown in our
economy in India. Let us first talk about the five challenges
the millennials are facing. These I feel are the challenges because of
which they are not buying a house or even a car. 1. The first challenge is the income of the Millennials
: The income of millennials who joined the work
force in the last 10 yrs has remained almost flat. In 2010 freshers in software industry were
getting between 2.4 Lac per annum to 3.5 Lacs per annum. This figure has remained flat throughout the
last 10 years. This is because of the demand and supply. There are more graduates coming out colleges
compared to the number of jobs for these graduates. These figures are visible in every traditional
industry. It is only in the newer industries that there
is a lack of talent. One tip here for those who want to find a
job. Get a skill in the industry that has lack
of talent and you will never have to worry about a job. Because of lack of talent in some industries
the salaries have gone up in these industries. In software the some companies are paying
double salaries for AI, ML and DataScience. Because there is a demand and the supply is
very low. Recently I made a video about this. You can watch it here or I will leave a link
in the description below. But these industries are nascent and number
of people who can double their salaries is very small. So on an average the income of millennials
joining workforce have remained flat throughout the last 10 years. That is the first challenge the millennials
are facing. 2. The second challenge is the student loans
: Now this challenge is less in India and more
in the other developed nations – and it has become a crisis in the united states of America. According to one report in the Time Magazine
they say that “Americans Are Drowning in $1.5 Trillion of Student Loan Debt.” This is huge. United States of America has about 44 Million
Americans – mostly millennials who are already in debt even before joining the work force. Now in India parents usually fund their children’s
education. But even in India in the last 10 years there
have been some rise in student loans. There are students who are taking on debt
even before they join the work force. I feel that taking a cue from United States
of America the students in India and their parents should try to avoid taking a loan
from the bank unless the student is a genius and will miss out if not funded by the bank. The second challenge the millennials are facing
is loans. They have accumulated debt even before joining
the workforce. 3. The third challenge is job insecurity : There is no job security now a days. There are companies that go into a loss and
then they layoff a good number of people. There are companies that go bankrupt and first
they stop paying salaries and next they fold so all the people in those companies are either
looking for a job or lot of them are jobless. Then there is these entire industries that
are disrupted because of change in technology or something new that is bigger – better and
cheaper. So industries are closing down which impact
the entire eco system. This again renders a whole lot of people jobless. For e.g. in my city known for Textiles and
Diamonds there has been a huge shift. Because of that a lot of units have closed
down and are regularly closing as we speak. Gone are the days that my dad enjoyed. He joined one company when he was 25 years
old and retired from the same company after they gave him a plaque for service of 35 years. His entire life and finances was built on
stability of that one job. Imagine that was like a Cinderella Dream Come
true in todays world. So job insecurity is the third challenge for
millennials and they will have to learn to deal with it. You know because of the world in which we
live today. It has become all the more important for millennials
and post millennials to follow some golden rules of money. If you don’t know the golden rules of money
then watch my video on the same topic here once you finish watching this video. That video will help you start thinking about
money in a different manner. Millennial Money is as important as millennial
mindset. Coming back to our topic. 4. The forth challenge is the cost of house : You know recently I sold my house in another
city to buy a house in my hometown. Do you know the cost of this house? It is a 4 bedroom row house and It costs 2.1
Crore to buy. 2.1 Crore. I have not seen money like that. But how much does it cost to rent. Only Rs 25,000 per month. So you know what did I do. I put my money is savings and fixed deposits. And then I made a decision to stay in this
house on rent. Yes on rent. Because even if I stay in this house on Rent
for 10 years I will be paying approximately 30 Lacs in 10 Years. And for 20 Years I will be paying a maximum
of 65 Lacs to 70 Lacs. But if I buy this house today I will need
a loan of at least 1.5 Crore. Do you know how much will be the EMI on that
loan for 20 years. About 1.5 Lacs per month. Just imagine the extra burden off 1.25 Lacs
per month just to live in this house. Where I can pay Rs 25,000 and not worry about
the maintenance or property tax. If millennials are not buying a house then
this can be the reason. The cost of property is high in every metro
city. So buying a house can put a lot of pressure
on finances of millennials. There was a time when salaried employees used
to take advantage of the tax write-off of 1.5 Lacs for buying a house on loan. But now the tax write-off is too small compared
to the overall cost of the loan. There was a golden period where salaried people
could buy a house because cost of house and tax rebate were affordable. But today unless you have enough money where
you don’t need a big loan buying a house is out of question. That is the forth challenge millennials are
facing. The cost of house has gone up so much that
buying a house is out of question for millennials. 5. The fifth and the final challenge of buying
a car : You know between the period of 2014 and 2017,
I got an opportunity to live in Sydney. When I reached Sydney I thought that I needed
a car. And I bought a second hand Mazda 3 for 8,800
Dollars. But in Sydney you have a last mile connection
with public transport. That means from your home to any place you
can use the Metro or the Bus. The cost of public transport is also adequate. So I was not using the car much. After few months I realised that buying a
car is futile in Sydney. Over that I had to pay another $1,500 for
Maintenance and Insurance. Now this was a complete waste of money. Because I was hardly using the car. So within a year, I decided to sell my car. At a loss. Then I subscribed to GoGet Service. GoGet is a car share service across Australia. Generally we used public transport for travelling
in Sydney but for long distance we used the GoGet Service sometimes. It was cheaper than owning the car. In GoGet, I spent less than the cost of maintenance
and insurance in two years of using the service. It was really a big saving. I feel that today we have more options available
than having to buy a car. And in India a lot of Millennials already
have a car from their parents. Now a days no one is stuck because of unavailability
of the car. A car was fancy when I was growing up. But for the millennials the car is not a fancy. In fact they can call a car at push off a
button. How good is that? That is the fifth and final reason for challenges
Millennials are facing. In a nutshell, I feel that Millennials are
not interested in buying a house or buying a car because of all these five challenges
we have seen today. Who knows these millennials who have better
education and better entrepreneurial spirit may come up with Millennial Homes that are
easy for Millennials to invest in. As far as Cars are concerned we already have
the Olas and Ubers. The car share services that have made a dent
in the universe. This was the primary question, Is the millennial
mindset responsible for slowdown in the economy? The secondary question is Is there really a slowdown in the economy? Now I am not a Economic Expert. But there are two videos from experts of industry
for those who are interested. The first video Is of Mr. Narayan Murthy the
Founder of Infosys that came out about two to three weeks before. He said a lot of things about the economy
and his views do not match with the hype created by the media. The second video is of Mr. Rakesh Junjunwala,
the Warren Buffet of India or the Big Bull of the Stock Market in India. He said a lot of things about the economy. His views again do not match the hype created
by media. I will share the link in the description for
both these videos but in short both of these experts do not believe there is a slowdown
like the media and government is pointing at each other. Friend, whether you are a Millennial or not. There is one thing to understand. You are responsible for your own future. No country, No government, No market, No business,
No company or Nobody. Not even your parents can help you. Your parents can give you money but they cannot
give you a job or income. You are the one who can help yourself. The easiest ways to help yourself is to focus
on your skills and talents and keep improving them so that the world cannot ignore you. My friend – if you are still watching – My
Name is Amit Patel and I am the founder of this channel Musings by Amit – if you have not liked this video so far – then
I would request you to like this video because it will help the youtube algorithms to show
the video to more people like you – Moreover subscribe to this channel and press
the bell Icon because I share a lot of ideas, insights, tools and tactics that will help
you to grow your career if you are in a job Or it will help you in becoming an entrepreneur
if you are building a business. Thank you for watching this video. Stay focused. Stay Rich. Keep coming back for more.

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