It’s graduation season. Perhaps you have family members such as children, grandchildren, nephews, nieces or others who are graduating from high school or college this year. Members of the current generation of graduates are known as millennials, a group loosely defined as those born between the mid-1980s and early 2000s.1
Millennials sometimes get a bad rap as being entitled and self-focused. However, their relationship with technology has given them a unique worldview. They grew up with cellphones, internet access and other technology that previous generations couldn’t even imagine. Millennials recognize how to use technology to their advantage, and they may see opportunities that older generations don’t recognize.
Technology isn’t the only factor that’s had an impact on the thinking of millennials. They’re influenced by major world events like 9/11 and the economic collapse of 2008. They also struggle with student loans, which may influence their view on money and debt.
As a baby boomer, you may feel it’s your responsibility to impart wisdom to millennials. However, there could also be important financial lessons you can learn from them, especially as you approach retirement. Below are three ways you can think like a millennial as you enter retirement:
Use the sharing economy to generate side income.
Sharing is a basic life skill that most people learn in kindergarten. However, technological advances have helped reshape the economy through the idea of sharing. The “sharing economy” is based on the concept that anyone can earn income by sharing the use of their assets, such as cars, homes, tools and even their time.
Millennials have embraced the sharing economy, as both users and sellers. You may be able to do the same in retirement to generate side income. For example, you could use your car to drive part time for a ride-hailing company. You could earn extra income by renting out a room in your home to travelers. There are even sharing services that allow you to make money by running errands for others or loaning out your tools. Do some research and be creative to find moneymaking opportunities.
Budget your spending so you can enjoy memorable experiences.
Many millennials say they would rather spend their money on experiences than on stuff. They value activities like travel, concerts, parties and other social events. To finance those experiences, they often take a minimalist approach to the accumulation of “stuff,” such as clothing, furniture and more.
That could be a wise approach to take in retirement. If you’re like many retirees, your plans may include travel, hobbies, dining out and spending time with family and friends. Those activities require money.
If experiences are important to you, consider funding them by cutting spending in other areas of your budget. For example, cut back on shopping for new clothes. Consider downsizing to a smaller home, which would reduce your costs for things like mortgage payments, utilities, maintenance and more. That could give you more money for the activities that are most important to you.
Use technology to your advantage.
There’s no doubt that many millennials are much more tech-savvy than their baby boomer counterparts. You may even turn to your children or grandchildren for help with your tablet, cellphone or other devices.
However, now could be the time to embrace technology and learn how to use it to your advantage. For example, a number of apps can help you budget and track your spending in real time. That could keep you on the right path so you don’t deplete your assets. Also, your financial professional could help you take advantage of planning tools that can forecast your retirement and monitor your investments. Look for technology that can help you keep your retirement on track.
Ready to implement these tips into your retirement? Let’s talk about it. We can help you analyze your needs and develop a strategy. Let’s connect soon and start the conversation.
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16694 – 2017/5/23