Birthed to create an interactive yet safe avenue to explore strategies and insightful initiatives to achieve financial buoyancy, staying updated with business and the economy, and to make all-round informed decisions among its audience is the nascent Millennials Hangout program, powered by BusinessDay on its widely acclaimed Youtube channel.
This program is targeted at the millennial demographic, equipping them with the right knowledge and insights needed to navigate the financial train to the zenith of financial independence. The August edition with the theme, “Financial Independence for Millennials.” This episode was greeted by a host of insightful millennial speakers including, Mr. Onome, Mr. Hilary Uthuke, Mr. Innocent, Mr. Gbogbola and Mr Oladipupo Clement, who all contributed intelligently and significantly to the discourse.
Financial independence is the goal of every hard-working individual. Getting to the stage where one can comfortably afford luxury, comfort and impact the lives of others without going broke is ideal and mostly a dream for many. The begging question in this regard is the achievability of the feat. With more than half of Nigeria’s population striving below the poverty line, financial independence fondly appears as a fantasy.
Providing clarity of the millennial demographic, Mr. Onome Ohwovoriole explained the scope of the millennial demographic. He cited that millennials are typically born between 1981-1996, which translates to those within the ages of 28 – 43. He pinpointed this age bracket to analyze the financial needs of the ages therein. He divided into two phases, one at age 28-33, explaining that millennials within that age bracket are young and need to practice more of saving, investments and skill acquisition, while the other phase from age 34-43 is on the pressure side of life as it’s risky to not have a financial plan at this age, given that retirement age is only two decade away. He advised that “It’s highly in this age bracket; you should have been married; therefore, it’s time to work and plan with your spouse, making sure you’re both on a common ground. Invest more in either stock, crypto, real estate, gold or silver as they are assured to yield good returns especially when followed with consistency.”
Onome also advised on getting a personal development project, avoiding lifestyle creep, and picking a desired amount of income you wish to generate monthly while you work towards it. “True financial freedom is passive income from passive investments,” he proclaims.
Mr. Innocent spotlighted lack of education as the leading cause for financial crisis and said that millennials should carefully obtain good education and awareness including media literacy, in order for them to decipher which financial system or platform is fake and whatnot. He asserted that with education, one can be able to understand, plan, save and invest. “After educating yourself, budget yourself and stop trying to impress others; reason before you spend; cut your coat according to your size,” he warns. Innocent believes that if these directives are adhered to, financial independence is guaranteed.
Part of financial successes are owed to financial systems and structures. How to utilize these structures to financial advantage was explained by Mr Gbogbola. He started by citing unplanned instances like sudden illness, unpaid debt, unplanned property damage and a host of others. These instances happen to everybody; however, it’s important that they can be easily solved without having to dig into your pockets if financial systems are properly utilized. He highlighted the credit system and that a lot of people are discouraged from using credit systems because of the proliferation of illegal lenders, who are all now banned and scrapped from the system. “With a good credit score, you can get that loan you desire and even at a lowered interest rate,” Gbogbola asserted.
One of the ways to get a good credit score is by having your credit portfolio checked and assessed from the nearest credit bureau offices. The position would enable you to know how fairly eligible you’re to obtain credit from financial institutions. If the position is relatively low, it’s up to you to build the score and this can be easily done with the utilization of a single financial institution. “You don’t expect a bank you don’t often operate with to grant you loans, you’ve got to have partnered with their system in order to get their advantages,” Gogbola explained. When you build your credit score, you can easily borrow funds to invest, which is a pathway to attaining financial independence.
Gbogbola also mentioned the benefits of insurance, and most importantly, health insurance is necessary for every millennial who wishes to avoid financial wastage. “Car got charred, you have a medical challenge, and all other forms of crisis can be efficiently catered for with just a one-time yearly subscription,” he explained.
Mr. Oladipupo Clement on the other hand chronicled levels associated with financial freedom. He classified them as financial crisis level, financial instability level, financial stability, financial independence and financial freedom, stating that millennials should find their levels and work towards ending at financial freedom, the last level. His contributions gave a spiking difference between financial independence and freedom. “While financial independence requires you to enjoy dividends from your investments, catering for yourself and your family, financial freedom is the level that requires you to enjoy the dividends of your investment such that you impact the lives of others outside your family circle. This stage is gaining fulfillment in donation and not accumulation,” Clement explained.
To wrap up the individual contribution session, Mr. Hilary resounded that millennials should continually develop the mentality to create ideas. “Learn a skill, not just to get employed by organizations, but to build a business around it,” Hilary explained. He spoke about the numerous opportunities the tech and digital age is offering, and for him, therein lies the keys to financial independence. From the place of concern, Hilary highlighted that “success is good, but even better when it’s achieved early.”
In response to the question “Can a 9-5 professional be financially independent?” Gbogbola expressed the view that it’s possible to be financially independent as a 9-5 professional using himself as a case study. He pointed out that growing across the corporate ladder should be prioritized, including doubling jobs and building a skill set to solve problems across different organizations. However, Clement is of the contrary opinion that sole reliance on 9-5 might not ensure financial independence, that after a 9-5 routine, a 5-9 routine should be incorporated as a side avenue to generate more wealth while still working professionally.
In addition to the question’s responses, Onome claims that business itself is a risk and not everyone is up for the risks involved and that with discipline and intentional investment, a 9-5 professional can attain financial independence. This was followed by Hilary who commented that it’s best that while a 9-5 professional is at their career, they should learn how the business of their given career works in order to create unlimited value from it.
Following the contributions of the aforementioned speakers, gaining financial independence as millennials should be considered and consistently worked on. Moreover, it’s quite important to visualize financial freedom at its highest level, away from the limitations of financial independence, as a clear distinction between both variables is simply an adequate mindset for greatness.
