The dynamics of the world as we knew it have drastically changed. Looking back, it seems like a dream to me. People have quickly moved on from brick and mortar to click and order.
Previously, it took a lot of time and effort to go around town shopping for stuff every single day, week or month. However, in today’s fast-paced economy and world, all you need is a smart phone with access to internet connection. This new development has caused millions of young people to become super distracted and to some extent addicted to spending through their devices.
This article discusses the 5 main reasons why more than 70% of young people have less money in the bank than they should.
The simple act of being able to buy anything and everything whilst laying on one’s couch or bed, commuting to work, out on a nice walk in the park, or even sitting on the loo, has contributed to a booming online market industry.
We are constantly bombarded with sales alerts, new product launches, and irresistible deals, and if you are not busy swiping, you probably are living under a rock.
Oh, my days… What has the internet turned our world into?
I must confess that for me, the ease to place orders has made it super tempting and enticing to click and buy stuff, without necessarily feeling the pinch of money leaving my account, and sometimes without even knowing what my bank balance is.
The truth is, whenever I go shopping in person, I just don’t buy as much as I do when I am comfortably sat in my couch.
The Rise of Buy Now Pay Later(BNPL) Schemes
I don’t know if you have noticed or if it’s just me, but whenever I log in to some of my favourite online shops, I am aggressively sold the option of buying now and paying later. I am consistently reminded by options from clearpay, laybuy, openpay, klanar and much more, with statements like “like it and you want it, buy now and pay later.”
Some providers even suggest a zero down payment for the item(s) and you can pay in installments. Now that’s tempting! So we end up jumping on the option that sounds too good to be ignored, without feeling the pain of paying out any money immediately.
Although you don’t feel the weight of the purchase immediately, you still end up paying!
Shockingly, research revealed that more men use this option than women(UK case study).
Furthermore, these schemes have increased conversion rates for online retailers by up to 30% in the US, and over Christmas 2021, $3.3 million in debt was reported in the UK by BNPL providers. Check out this article from finder.com
Social Media Competition
Although most of us will argue that we are not in competition with anyone, the internet, and social media in particular, has a subtle way of pushing us into one.
You log on to Instagram and other social platforms, and all you see are people who look perfectly dressed with dope designer gears, at cool restaurants or holiday locations. And then you retract and look at your own stuff and start to feel depressed.
What then is the quick solution to the depression of not being as cool as others?Most often than not, it is spending your cash to conform with societal “norms.” And before you can blink, you’ll be living from paycheck to paycheck.
I remember feeling this way a few years ago. I spent the money I didn’t have to please the people I didn’t like, and I never even wore the stuff I bought because I just didn’t like the fit. And to make matters worse, I sold them ridiculously cheap for the sake of de-cluttering. Urgh, what a life!
Poor Money Blueprint
The consolatory statement among people who have little or no money is that; “money is the root of all evil, and rich people are going to hell.”
If you hear this statement enough times, you’ll start to believe it. Why then, would you bother developing a relationship with such an evil thing called money? Hahaha. Because we are financially literate. In principle, in the real-world, it is hard to have money and not spend it.
Moreover, although our personal development is our responsibility, the distractions we face in today’s world make it extremely unlikely for us to focus on value-added activities like reading books, attending seminars, mentoring, coaching and much more.
Three of the books I highly recommend for a great money blueprint are; The compounding Effect, Rich Dad poor dad, Think and grow rich.
Absence of Goals
The bible, which is as practical as it is spiritual, and also one of the oldest religious books ever written, notes that when people have no vision, they will end up perishing (proverbs 29:18).
Most young people are guilty of living a vision-less life. People with a vision are most likely to have a budget, and be more disciplined with their money and the choices they make.
Goals keep you focused and they set boundaries for you in an effortless manner.
Young people who don’t have a goal to own their own home, have a mortgage-free car, send their future kids to a prestigious school, or save a certain amount of money for retirement, are more susceptible to spending their hard earned money on consumables like clothes, shoes, designer gears, flashy holidays, or latest gadgets.
The best book I have read on goals is by the legendary Jim Rohn, and I have also dropped a few great books below for you to check out.
It was unfortunate that I lost my father at a very young age, but fortunately, I was compelled to have a vision for my future for me, failing which I could have gone astray.
Having goals has certainly been my saving grace.
Even though the world has evolved to a place where everyone has a good chance at creating personal and generational wealth, most young people seem to be having a tough time holding on to and multiplying their money.
If this culture of binge shopping isn’t brought to a halt, it is likely that government expenditure will increase in areas such as social housing, food stamps, and benefits. This will definitely set a snowball effect for a handful of societal ills like crime, and poverty, so take charge of your finances NOW!