Millenials’ Save For The Future vs Gen-Z’s Soft Save, Which Is Better?

The norm as we have been thought to follow and believe for the longest time is saving for the future or rainy days. However, the Gen-z’s are here and they believe that it’s time to do away with that age-old tradition.

Here’s what they’re proposing: soft save.

What is soft save?

Soft save is about saving money to be used now or in the very near future, instead of saving for the near end.

Instead of focusing on events like retirement and property, they’re more focused on improving life today. It is present with a nurtured mental health and personal evolution over long-term fiscal stability.

Risks of both: Missing out vs no savings for emergencies/retirement

Perks of both: A comfy, sustainable tomorrow vs a comfy, sustainable today

Gen-z(s) were built around times when finances could get unstable in a blink of an eye (financial crisis 2008), when financial stability and career were shaken completely (pandemic 2020), so it’s only natural they want to live today and not worry about what comes after.

It is traveling for new cultures and experiences, personal growth and development, wellness activities for mental as well as physical health.

They crave immediate satisfaction and motivation instead of playing catch-up almost their whole lives, only to have money when they’re no longer agile.

But, what about the future?

Generating passive income!

Passive income is all about establishing income streams that require minimum to no effort on your part. It’s rental income, dividends from investments or revenue from a side venture.

This would help them retire early, and cushion the financial impact of a reduced income post retirement.