According to a recent survey by GOBankingRates, millennials need help in the saving money department. In their recent article, GOBankingRates breaks the millennial generation into two parts, young millennials between the age of 18 to 24 and older millennials, those between the ages of 25-34. Now between these two groups, 72% of the “younger” age group has less than $1,000 in their account while 67% of the “older” age group has less than $1,000 saved-not much of a difference. The point is all of us millennials, ages 18 – 34, need to really begin saving our money because right now our money can’t save us. In other words, we’re on the “struggle boat” and here’s at least 3 reasons why.
1.Not earning enough dollars
While there may be some who may not fall into this bracket, most working millennials are barely making ends meet. According to a study by Young Invincibles, we earn 20% ($10,000) less than young adults in 1989. Today, those with a college degree and debt, make the same amount as someone who had NO college degree in 1989. We invest so much in our education to only end up working in low-wage fields. As jobs continue to increase the pay continues in a steady decline. What’s even more upsetting is that even though the millennial generation as a whole isn’t making enough, those of color in this age group make even less than white Americans. It’s an unfortunate situation.
So don’t think it’s just you who feel as though you are not raking in the money like you know you should be. Let’s get real, besides student loan debt, many millennials have other financial obligations like rent, car notes and insurance, and other necessities that need to be paid off to maintain our lively hood. Once those bills are paid and based on one’s level of income, is saving really an option? Even as the most talented, educated and diverse age group, we still end up at the bottom—how sad.
As I mentioned above and in my previous post, Dear Student Loans, We Don’t Have Your Money—we literally don’t have the money to pay our loans yet alone to save it. Even for those who may not have as many financial obligations as others, this by far is a beast on its own. I could write an entire book on this financial crisis but what would change right? The bottom line is some of us can’t even afford to live on our own. Although some may split rent with roommates or live rent free with mom and/or dad, it’s still hard to save because one’s student loan(s) alone could consume his or her income.
3. Living for today and not tomorrow.
Millennials are go-getters. We’re dreamers and passionate life enthusiasts. To us, there’s more to life than having an abundance of money. It’s about living life to the fullest. It’s about creating meaningful and memorable experiences, wealth or no wealth. So we spend most of our money on traveling, socializing with friends, and eating like kings and queens. Why? —Because we suffer from YOLO (You only live once) or FOMO (Fear of Missing Out) syndrome. However, while it is nice to live on the wild side, it’s even better to live on the wild side and have a safety net too. Just think, if you set aside 20 dollars a week for the next 52 weeks, you will come out on top and with a thousand dollars more than what you have today.
Remember failing to plan is planning to fail. So sometimes we have to set aside our wants of today for our needs of tomorrow. Being a cheap chic geek isn’t easy but it’s far better than being broke.