As much as millennials love hearing over and over how important it is to save for retirement, the armchair financial advice ignores one tiny little detail: We don’t have the money to save.
When that $30,000 base salary doesn’t even cover the full extent of your student debt, it makes it pretty difficult to stash extra funds away for the future.
But please, tell us again why we’re dooming ourselves.
Not only must they fund their own retirements due to the near evaporation of company pensions, they also are saddled with more student-loan debt, stagnant wages and higher living expenses compared to a generation ago. And at the same time — in another departure from their parents’ and grandparents’ experience at the same age — they want to … well, spend more time enjoying life.
Indeed, financial advisors see more young adults — compared to previous generations at their age — making their personal and social life a high priority instead of focusing solely on work, buying a house and raising a family.
It’s not that millennials don’t see the importance of saving money for the future. We understand that we’ll still need to pay for things when we’re older. But we also have lives to pay for in the present.
You don’t need to dig deep to understand. To make money you need a job. To get a job you need a degree. To get a degree you need to go to school and take on loans. When you finally have that job, your extra income goes straight to paying off those loans.
Starting a family and investing for the future are almost laughable concepts when compared to the current task at hand: supporting one’s self.
But it’s fine because at this rate we’ll work ourselves to death before we hit 60 anyway.
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