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Monday, October 15, 2018

Personal Financial Management : MASS’2018 - Money Avenues Savers’ Survey 2018 Result


Personal Financial Management : MASS’2018 - Money Avenues Savers’ Survey 2018 Result


V GOPALAKRISHNAN
Founder & CEO

MONEY AVENUES
V GOPALAKRISHNAN


Understanding the minds of the people has always been intriguing and challenging for all the businesses due to variety of reasons. The challenge is multi fold when it comes to understanding the minds of the youth on their financial habits. Clients’ needs and wants have their own preferences and choices; for someone in the financial services to succeed, cracking this code is very very crucial. 

To unravel the financial habits mystery of the youth, Money Avenues (http://www.moneyavenues.in)engaged a nation wide survey to understand the financial habits of the youth in the age group of 30 - 40 years. Survey named as MASS'2018 (Money Avenues Savings Survey 2018) was conducted over a period of three months using a sample size of 1000 young professionals spread across 9 Cities ( 4 Metros, Bangalore, Hyderabad, Pune, Gurgaon and Noida). 

The survey was conducted through multiple methods, but largely conducted through personal interviews and through online response sheets for ensuring appropriate responses from the respondents. The whole idea behind the survey is to find out the basic financial habits of the young professionals who are high on careers and financial status. The respondents were provided with ten standard questions based on which the responses were collected and analysed.

The respondents were were chosen based on the density and demography of each City, making the sample a realistic and justifiable in terms of final analysis reflecting the overall mood of the youths on the issue. The respondents were also carefully chosen from diverse backgrounds and diverse industries such as IT & IT related, FMCG, Internet, Telecom and others. The results were indeed a big eyeopener and thought provoking for the entire financial services industry.   

1. What are the key factors impacting your personal financial management?
  • a) Lack of awareness (22%)
  • b) Too busy with work (21%)
  • c) Lack of guidance (7%)
  • d) Procrastination (19%)
  • e) All the above (31%)
Maximum respondents cited all the four reasons impacting their personal financial management. Its a fact that all are busy with their works, leaving little or no time to sit back and think about their personal financial management. Added to it, lack of awareness for the need of personal financial management makes it even more complicated.

2. What are the key factors impacting your current financial scenario?
  • a) Lack of adequate savings (17%)
  • b) EMIs & Outflows (36%)
  • c) Lack of financial discipline (6%)
  • d) Lack of financial planning (4%)
  • e) All the above (37%)
Maximum respondents yet again cited all the four reasons of making an impact in their current financial scenario.

3. What are the factors bothering your financial future?
  • a) Personal dreams (House, lifestyle improvement etc) (12%)
  • b) Children’s future (16%)
  • c) After Work life (Retirement) (31%)
  • d) All the above (41%)
Again, the maximum respondents opined all the factors listed above make an impact on their financial future. Interestingly, people are worried more about their post work life or retirement.

4. Do you follow a financial plan based on your goals and objectives?
  • a) Yes 11%
  • b) No 89%
It’s not surprising to see maximum number of respondents do not work on their financial planning.

5. Do you invest your savings?
  • a) Yes (12%)
  • b) Somewhat Yes (51%)
  • c) No (37%)
On the investment question, the somewhat yes which has a higher percentage indicates that their investing is based on specific requirement, for eg.,tax savings.

6. How often do you invest your money?
  • a) Very regularly (Once in few months) 7%
  • b) Regularly (once a year) 38%
  • c) Occasionally (Once in few years) 16%
  • d) Not at all (39%)
The non-investors seem to be a major chunk in this category. The regular investors are the ones who primarily invest for their tax saving requirements. 

7. Why do you invest?
  • a) For better returns (11%)
  • b) To save taxes (62%)
  • c) For my financial goals (14%)
  • d) All the above (13%) 
Many young investors tend to equate tax savings with investing. And that is what is reflecting in the survey results, with the vast majority investing only to save taxes.

8. Where did you invest your money?
  • a) House (22%)
  • b) Gold (19%)
  • c) Mutual Funds (11%)
  • d) Insurance (34%)
  • e) Others (14%) 
Every youngster’s first dream is to own a home and that seems to be a major factor. Insurance, which is not an investment, is often treated as an investment in the Indian context. Many have taken insurance for fulfilling tax saving requirements.

9. Who do you seek for guidance on your investments?
  • a) Family members (33%)
  • b) Friends and colleagues (31%)
  • c) Professional Advisor (13%)
  • d) Digital and online sources (23%)
This question was aimed to identify their influencers’ in the financial decision making. Their close circles form the largest chunk of influence in their decisions as seen in the survey results. 

10. How do you rate your personal financial management?
  • a) Extremely Happy (3%)
  • b) Happy(12%)
  • c) Unhappy (32%)
  • d) Extremely Unhappy (53%)
This has been the icing on the cake. When people were asked about their personal financial management experience, most of them were extremely unhappy about themselves. Very few were happy about their personal financial management experience.

Though a brief survey, but the contents clearly point to few obvious conclusions for the people working in the financial services industry. Despite information explosion, investors or potential investors still need the services of the professional advisors on their personal financial management. Secondly, the personal financial management which is largely sketchy and unorganized, investors need to streamline their personal finances based on their goals and objectives. 

Youngsters, by and large are not happy about their personal financial management and that offers a huge scope for the personal financial managers to step in and help them gain happy experience.

V GOPALAKRISHNANFounder & CEO, MONEY AVENUES



Personal Financial Management : MASS’2018 - Money Avenues Savers’ Survey 2018 Result Reviewed by S. Chitra on October 15, 2018 Rating: 5 Personal Financial Management : MASS’2018 - Money Avenues Savers’ Survey 2018 Result V GOPALAKRISHNAN Founder & CEO MONEY AV...

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