Mixed reviews of millennial’s financial habits everywhere you turn. One study says they are saving for the future while another says that millennial’s are actually quite at saving. The naysayers may find it difficult to see the accomplishments and potential of the generation of those in this generation may be farther ahead of the curve than most realize.
There are several challenges that uniquely affect millennial’s personal finances including student loans and credit issues. However, millennial’s have three distinct advantages over prior generations that could turn into long-term wealth accumulation:
- A powerful incentive to accumulate wealth rapidly
- A thorough yet painful financial education
- The instinctive glass of 21st-century technology
Millennials are just not interested in the corporate life, which is what a lot of people are aged tended to make money in. Not interested in the getting ritual climbing the corporate ladder as much as making a difference in finding the work/life balance.
Many millennial’s value time for more than money and they want to experience life in general. Changing job markets and earnings as a generation can be some of the most important decisions but flexibility is also a priority. Millennials are likely to choose a company that offers a two-week vacation rather than a $5000 bonus. Millennial’s want freedom so bad that it’s built into the DNA and create a great mindset for investors. Instead of buying the flashiest new car or biggest house, they choose to look for investments that can offer them a day off and experience rather than a tangible “thing”.
Read More: 5 Reasons Millennials Should Stop Renting and Buy a House
Baby boomers and even generation acts seem to be content to work the same job for 40 years doing the same routine each day that millennial’s are completely different breed. Opportunities and experiences grow exponentially with each year and as new technologies advance, changes really think about investing, real estate, and that live/work balance.
Millennials are able to adapt much better than the baby boomer era and most have no memory of a world without the Internet. That’s one of the unique things about this generation and financial and business concepts that may seem commonplace to previous generations are simply outdated and antiquated to millennial’s.
We are seeing a lot of this generation invest in real estate, not for primary occupancy for wealth building. There are a lot of programs that can offer a low to no down payment for even rental properties and this is a great way to build wealth with a revolving option for balance. The home is there to live in order to rent out and continues to make money while it takes up room in a portfolio.
In conclusion, millennial’s may not be perfect with money but every generation has its drawbacks. Many millennial’s may feel that they have a rough start in life but are determined to make a name for themselves both and freedom, lifestyle, and work. This can make them stronger, more flexible and more conservative financially.
The opportunities for millennial’s are huge. They are probably even greater than they were for previous generations. And while most of the world may feel that they’ve dug themselves into a financial hole, it could be the rock solid foundation to build success in the long run.
Call us for all Northern Virginia real estate