Inheritance and Success: What It Means for You

What is Heritocracy?

According to G1, historian Eliza Filby discusses in her book "Heritocracy" how current generations, especially millennials and Generation Z, are increasingly relying on parental wealth to achieve financial success. This dependence affects their ability to purchase assets like homes and redefines loyalty dynamics in the workplace.

Filby points out that rather than meritocracy being the path to success, the reality now is that family "help" has become an essential condition for many young people. The concept of the "Bank of Mum and Dad" becomes fundamental in a society where the cost of living, especially housing and education, is on the rise.

Why Does This Matter to You?

This heritocracy phenomenon can directly impact how you plan your personal finances. If you are in the age group that depends on family resources, how does this affect your financial decisions? For instance, imagine a young person earning R$ 3,000 per month who, instead of being able to buy a property with their salary, needs their parents' help for a down payment or even to cover rent. This can create feelings of instability and frustration.

With rising economic inequality, those without this family support may feel even more pressured. The question remains: how can you prepare for this? The first step is understanding that your financial situation should not solely depend on what your parents can provide. The ability to plan and save becomes crucial.

What Can You Do?

• Reassess Your Budget: Use the 50/30/20 method to organize your finances. Allocate 50% of your income for needs, 30% for wants, and 20% for savings and investments. This will help keep you on track even without the "Bank of Mum and Dad".
• Build an Emergency Fund: Having a fund that covers 3 to 6 months of expenses is essential. This will provide financial freedom and security in times of crisis.
• Invest in Education and Skills: Instead of relying solely on a college degree, seek courses and training that enhance your skills and value in the job market.
• Explore Alternative Income Sources: Consider freelance work or small businesses that can supplement your income and reduce financial dependence.

How ADXIS Can Help?

Understanding the dynamics of heritocracy is an important step, but it's not the only one. The ADXIS platform can help you organize your finances using the 50/30/20 method as a foundation. By having clarity about your expenses and income, you can create a financial plan that prepares you for the future, regardless of the help you may receive from your family.

In times when parental assistance is vital for many, the key is to find the balance between accepting this support and preparing for an independent future. If you feel lost, organization is the answer!