Millennial Economic Challenges and How to Overcome Them
There might never be another generation that was scrutinized as much as the millennials or referred to as Generation Y. If you are among this generation, you might have heard lots of flak over the years with words including narcissistic and entitled being thrown around. However, in reality, millennials are facing some economic and career challenges in history. If you’re like some millennials, you graduated during the recession and you have probably remembered that the jobs were both low paying and scarce during that time. This , combined with the record-setting student loans, it explains why you might need some techniques to meet the modern challenges around purchasing homes, saving for retirement, saving for the education of your children, and so on.
Be a Homeowner Even When Homes Are Costly
If you factor in household income changes, the prices have increased nineteen percent since mid1980s. However, if you are a millennial, you are still among the largest group of home buyers in the US today. Nevertheless, taking on mortgage just adds to the amount of the long-term debt facing a whopping 2/3 of millennials nowadays. The best way to combat this is through saving for your home with the use of automated savings app that will help you stash away money without thinking about this so you can save up for downpayment and reduce the mortgage payments.
Save for Your Retirement
Retirement might seem a long way and you would not think of it first. Only some millennials would save for retirement. But, the biggest regrets of adults is not having enough savings for retirement. You might require millions of dollars to retire and keep your lifestyle and peers are on the track to miss the mark with sixty-two percent of your required savings. As part of the generation Y, you are in the position to learn from the mistakes of the previous generations and you should start saving up for your retirement before it is too late.
Plan for Your Successful Financial Future
Some would argue labeling generation Y as entitled is unfair. If you are a millennial and you agree with this, the best response is proving them wrong. In spite of the financial challenges you are facing, there are numerous opportunities you can take for consideration.
Get Support from Your Parents
If you are like some millennials, you might be seeking for your parents for financial support through living at home even after college or while saving for downpayment. Leaning on your parents for quite some time will help you establish firm financial footing after you graduated from college, yet you might want to search for ways to invest and save for long term so you can live on your own. You may do this by setting realistic expectations for living expenses based on the income you have. If you are living with your parents, you may benefit from having an emergency fund and saving for your future home. Cleaning up your finances to start fresh is a good idea while you are with your parents.
No matter what millennial economic challenges you’re going facing, there are numerous unique opportunities you can consider and you can always rely on professionals for help.