The Millennial Generation Loves To Travel
Most Millennial’s Grew up in a Baby Boomer Household Listening to their parents dream about vacations.
The Millennial Generation has reversed the traditional life plan. Planting Roots, Starting A Family and Settling into a Home planning an occasional vacation as they raise their children. Seeing the world so to speak after the children are grown.
Today the Millennial mindset is there is plenty of time for that let’s see the world first. While they are young and have no major financial obligations like a house payment.
Living cost is low as they tend to either rent a room, share an apartment or still live at home. No children yet to feed, keep a roof over their head or pay for day care and the soccer team. In essence enjoying life before settling down.
OK this all makes a lot of sense and sound like fun. So why did the Baby Boomers do it the other way traveling later in life?
Who do you think is right the Millennial or the Boomer?
The answer will differ depending on whom you ask and where you want to be financially in the future. As people age so does the job market, although it is illegal to discriminate against age as people reach their fifties they find it difficult to compete in the market if for some reason they loose a job.
Boomers planted roots!
They started a family, purchased a home and put part of their early income in a retirement fund. The House Payment stayed the same and years later went away lowering the cost of living. Unlike rent that keeps going higher every year. The portion of income placed in a retirement account continued to grow over time allowing them to retire comfortably.
Millennial Travelers are spending most or all of what they make!
Sure it feels good now, however when they get around to settling down everything will be more expensive. How old would you like to be when you stop working? Make a timeline a typical home take 30 years to pay for and the payment is a percentage of the cost. So the sooner you buy the lower the payment and the sooner the payment goes away. The sooner you start funding a retirement account the sooner you will have enough to stop working. Raising and feeding children, lets say 2 children would take 20 -30 to raise. It seems paying off a home and raising 2 children take about 30 years each.
As you can see it is not a right or wrong however it is a Life Choice. How old do you want to be when you can afford to stop working?
If you are a Boomer share this with your Millennial Children.
If you are a Millennial and this makes sense to you make an appointment to talk about a middle ground game plan.
In many cases owning a home costs less than renting. If you are renting a room from someone you are contributing to their retirement. Ask us about low to no money down programs. Be one of the Millennial Generation whose friends pay for your retirement!
Hope you enjoyed reading the Millennial Game Plan.