The world has never changed as fast as we have been witnessing it in the past few years, especially with this endless pandemic. Our routine, our habits, how we work and interact with people is completely different compared to February 2020. People are worried about not only losing their jobs but also about the threat of becoming obsolete. Financial stability is a concern and will lead the way society behaves and invests. In a society with so many changes, it is possible to see a new trend of financial independence for the youth as a way to address their future need in an uncertain world.
When we think of ourselves from three or four years ago, it is difficult to believe what we were like. Now, with the vaccination and the world slowly getting back on track, we are asking ourselves what will be our new normal. A significant increase in screen time, ordering food online, streaming television, and exercising online enabled the tech industry to access real-time data, and monitor, almost immediately, our next steps. They know what we like it, at what time we like, and how long we like have been engaged in it.
In the words of Yuval Harari, author of the international bestseller Homo Deus, “knowledge that changes behavior quickly loses its relevance”. The more data we have the faster society changes, and the faster our knowledge becomes outdated. Consequently, we are less able to make sense of the present and forecast the future. No one can predict how the North American job market will be structured in 2050.
The unemployment rate in Canada jumped from 5.73% in 2019 to 9.6% in 2020 and recovered a little to 8% in 2021. Statista. The working from home practice has spread and the consequences of this new behavior are still unknown. People are worrying not only about losing their jobs but also about the threat of being considered obsolete. According to the World Economic Forum’s Future of Jobs Report, 50% of all employees will need reskilling by 2025, as the adoption of technology increases. World forum
Financial stability is a concern and dictates the way society behaves and invests. Financial independence seems like Shangri-La for the new generation, who are stepping into the labor market clueless about their future. Reducing costs, changing consumer behavior, and investing is a good step to take in order to overcome the unknown challenge. The concept of the digital Nomad is gaining traction, as people would rather work remotely while traveling around the world instead of applying for a mortgage; Airbnb is a better option. Owning a car is no longer a necessity, as far Uber and Lift go. Ownership is no longer a goal, it has been replaced by the necessity to have a diversified investment portfolio with a significant passive income.
The world is changing faster than human eyes can perceive. Forecasting trends and behavior is useless. The better conjecture is that human beings will still have needs, and maybe the best way to address them will be to think critically about their needs, spend their money wisely, and invest the remainder. Therefore, in a shorter period of time, compared to the previous generation, they will achieve financial independence. This can be considered a better goal than re-learning everything they know every three years and restless fighting against technology.
1 - Harari, Yuval Noah. Homo Deus, A Brief History of Tomorrow. p - 67
2 - https://www.statista.com/statistics/263696/unemployment-rate-in-canada/
3 - https://www.weforum.org/agenda/2020/10/top-10-work-skills-of-tomorrow-how-long-it-takes-to-learn-them/