People Today
  • Health
  • Finance
  • Career
People Today

Why budgeting for Millennials is different and what to do about it

by Phil Lowe
October 11, 2023
in Finance
Why budgeting for Millennials is different and what to do about it

Shutterstock

Your mom and dad may advise you exactly how to budget but be careful. The world is very different today than it was when they were saving as a young adult. While the game remains the same the rules have changed dramatically since their time. The reality is that budgeting as a millennial is a very different proposition. Let’s discuss why and what you can do about it.

Today Millennials are earning less money (accounting for inflation) than Generation X were earing as young adults. This makes it difficult to follow the same saving guidelines that they followed. The reality is that while nominally Millenials may be earning a similar amount, they can afford a lot less. The prices of houses and other assets have increased exponentially. This has led to a crisis in many cities around the world and means that many Millenials can’t own a home until much later in life while Generation x often bought their first house when they were in their first job. Today that is impossible.

Today Millennials have more debt than Generation x. The reason for this is student loans. A university education costs more today than ever before. Most young adults today realize that they will carry their student debt for many years as they climb the corporate ladder. This is very different from Generation x when they either had no student debt or paid it off much faster. University educations are also worth far less. While in the time of Generation X a master’s degree made you stand out from the crowd and walk into a well-paid job, today you will likely start in an entry-level position no matter what degree you have. The education system has saturated the graduate market.

So what can you do about it? Well, the principles remain the same you need to save money where you can and pay off your debt as fast as possible. You may need to have realistic expectations though as buying your own house is probably not on the realistic list for a few more years. You could look at buying an apartment as your first step on the property ladder or look at buying a house as a group. Of course in both cases make sure you know who you are investing with and that the property is located in a place that it is certain to increase in value, otherwise it will trap you. Work on your student debt faster than the automatic payments. Once you are rid of it everything becomes much easier. Whatever you don’t stress. While some things are tougher for the Millenial generation, we also live in the most mobile open economy ever. You really are free to choose what to do with your life and how to live it.

Related Posts

Why Is Your Credit Score So Important?
Finance

Why Is Your Credit Score So Important?

December 2, 2023

If you don't know what a credit score is, it is time that you learned. Your credit score is a...

Retired roommates the solution to issues of old age
Finance

Retired roommates the solution to issues of old age

November 30, 2023

As the economy goes from strength to strength the price of houses continues to grow, both in outright purchases and...

Join Our Community!

Newsletter

Thank You For Subscribing :-)







Popular News

Three Quick Fixes to Better Health
Health

Three Quick Fixes to Better Health

August 2, 2023
It’s Not Always That Money Buys You Happiness
Finance

It’s Not Always That Money Buys You Happiness

April 21, 2023

Recent News

Why Is Your Credit Score So Important?

Dental phobia: different reasons why people are afraid of the dentist

Can we attack someone with sound?

Why Is Your Credit Score So Important?

Why Is Your Credit Score So Important?

December 2, 2023
Dental phobia: different reasons why people are afraid of the dentist

Dental phobia: different reasons why people are afraid of the dentist

December 2, 2023

© People Today

  • Home
  • Privacy Policy
  • Cookie Policy
  • Disclaimer
  • About
  • Contact
  • Health
  • Finance
  • Career

© People Today