The struggle is real… real annoying, real frustrating, and real overwhelming. (Yes grammar police I understand I should be using the word really). Read on for the top seven financial frustrations of our generation and pragmatic tips to alleviate their sting.
7. You want to be debt free
You see the financial mess our country is in. You may even see your parents financed to the max and stuck working jobs they hate to pay that debt. There’s gotta be some way some how to be debt free but it seems d*mn near impossible. You started your adult life with a sizable chunk of student loan debt and not a single piece of equity to your name.
What are you supposed to do? Eat ramen noodles and serve Natty Ice and Franzia at all your parties? That’s not gonna happen, college is over with and you’d like to live some semblance of a grown up life.
Tip: Find a way to decrease the cost of your student debt either by refinancing or through loan forgiveness such as PSLF. These two options don’t require a whole lot of sacrifice on your part but are smart financial moves that can save you thousands.
6. You want to travel and see the world
Oh the possibilities! The world is such a big beautiful place and there’s so much to see. You don’t have kids yet and now’s the time to indulge your wanderlust. There’s a huge problem though… travel isn’t exactly cheap. Experiences are the foundation of millennial life. You’re not satisfied going to work, coming home, sitting on the couch for a Netflix binge and calling it a life. You want more and travel fits that bill.
So what’s the move here? Wait until you’re financially stable to travel? Will you ever be financially stable enough to travel? You’ll probably be content to do nothing by the time the financial winds are in your favor.
Tip: You’re going to have to get crafty and you’re going to have to save. Pick out your big trip and set a date. Next time you’re about to mindlessly online shop remind yourself of the trip and sock that money away. Get creative with cheap Aribnb’s or hostels and use cheaper alternate transportation like bus, train, or subways to slash the cost.
5. You want to buy a house someday
Renting is starting to get old. Noisy neighbors and landlord white paint have lost their charm. You’re also getting tired of throwing away your money on rent. Here’s the thing about “throwing your money away on rent”. You’re not entirely throwing it away. When you own a home you “throw away money on property tax” every year as well. Depending on the size and price of house you would buy you’re probably not “throwing away” as much as you think on rent.
Renting is a bit of a lifestyle thing. If you’re not ready to mow a yard, shovel snow, repair roofs, and keep up with maintenance then renting is still a good option. Deciding when the time is right for you is the first step.
Tip: Start pricing homes and get an estimate of what you can afford on your current income. Start looking at homes in that price range and see if there’s anything you like, are homes selling for above, at, or below their assessed value? This will give you a feel for the housing market in your area. Realtor.com lets you search on a map so you can pick your favorite neighborhood and filter by price and other criteria. See what’s out there so when the time is right you’re ready.
4. You want to work a job you love and make an impact
Purpose, autonomy, mastery; according to the book Drive these are the keys to professional fulfillment at work. Millennials especially connect to purpose and autonomy. You want to solve problems and do it your own way.
Remember that student loan debt? Well unfortunately you got a degree in X and are super passionate about Y which has nothing to do with your degree or any degree and doesn’t pay enough to repay your student loan debt. Now what?
Tip: Consider setting up an income-based repayment plan and taking the job you love. Be sure to negotiate pay as much as possible and think about adding on a side hustle. Don’t go back to school and take out more debt! Everyone will suggest “going back to school” like somehow more debt and being four years without income will make things magically better. At some point you need to draw the line and make the skills and degree you’ve got work for your career.
3. You want to change the world and give generously
Philanthropy is super important to you. You want to be a part of building a great community. Unfortunately it’s tough to come up with the extra money to donate to your favorite causes.
Tip: Donate a little bit of money and a little bit of time. One day make a conscious decision to pass on a fabulous cocktail while out with friends and donate that $5-$10 to your favorite charity. Then find somewhere to volunteer that’s pretty flexible (whenever/wherever) and donate an hour or two of your time a month.
2. You want to support companies that do the right thing
You want high quality stuff and you want to help a good cause. But buying everything from the right company can get a little overwhelming both financially and mentally as you try to find the right brands to buy from.
Tip: Find a shop that makes it easy. Stores that sell sustainably sourced, good for you, profit donating products exist both online and in physical shops across the country. They’ll take the work out of hunting for the best products. To abate the often higher cost of these goods focus on quality over quantity and choose products that are multi-functional.
Check out this blog post for a list 150+ socially responsibly companies.
1. You want to live a life that’s not defined by your income
At the end of the day the goal of life is just to live one you enjoy. The reality is money makes the world go round and you’ve got to know how to use yours to build the life you want. It’s not about competing with others or meeting a certain standard. It’s about defining your own legendary life and coming up with the funds to live it.
You’ve got to ask yourself what makes you happy? Is it things? Is it experiences? Is it friends and family? Some combination of all the above? Figure it out and apply your money.
Tip: The best things in life are free. Write down two things your money has gotten you that you’re super grateful for and then write down two things that money can’t buy that make you ridiculously happy. Was it harder for you to come up with two things you spend money on that you’re grateful for or two things that are free?
The financial struggle is real my fellow millennials, but that doesn’t make you a victim of your financial circumstances. Share the two things that make you most happy that can’t be bought in the comments below or in the Millennial Maxims Facebook group.
If you love these tips you’re gonna love my upcoming book title TBD due out in October!
Recent Comments