A few days ago, I read
eFIPO's post on "Generation Y Not". It was somewhat shocking and amusing. It's true that the Generation Y (people born in 1972-1981 1978-2000, age 6 to 28) is in deep debt, having less net worth, and facing super-high housing costs. But at the same time, the Generation Y still have the time to make changes. Better yet, the high debt level is met with low interest rate. Moreover, the home ownership for 35-or-below is 43%, higher than 37% of 10 years ago.I ran into Feed the Pig that intuitively teaches people how to save money. Personally, I think latte factor is not practically. Here are some recommendations I collected from Feed the Pig:
Plan for retirement early: Start saving at 24 will give you an edge over someone starting at 35. Save $4,000 per year and invest in IRA . The amount will grow to $449,000. If you wait until 35 to start, it will only grow to $232,000.
Prioritize goals: Save from various sources, spend it on something your really want, say a high-class honeymoon or a 42" plasma TV. When you have a goal, it's easier to make sacrifice on minor things.
24-hour wait period: Commercials nowadays are well-designed, they persuade you into buying things you often don't need. When you want to buy something you're not sure about, give yourself 24 hours to think over.
Eliminate credit card debt: Enough said. Start from high to low interest rate and pay it back ASAP, even if you need to do overtime or shop at dollar-store.
Buy a house (townhouse, condo): Nothing beats investing in your own residence. Certain markets are over-prices, so wait for the right buyer's market.
Learn to invest: The difference between 6% and 10% return on investing $200 per month can be $500,000 in 35 years.
I'm planning ahead! I'm finalizing my cash flow for October and writing about The Money Book for the Young, Fabulous & Broke by Suze Orman.
November 6th, 2006 at 01:55 pm 1162821303
Instead of a plasma TV though, I'd prefer to go straight for a home, but that's just me. We'll have to see how well that works out. Right now, I'm still paying off my debts, but I am very keen on getting rid of it as soon as possible.
November 6th, 2006 at 03:09 pm 1162825770
i think the easier way to look at it is: are you a child of a boomer? i've noticed that 'kids of boomers' seem to have the entitlement issues moreso than others, regardless of their actual 'generation'.
then again, my parents missed being boomers by a couple of years, too, so i still have no generational home! i'll just be a generation of one *g*
November 6th, 2006 at 05:59 pm 1162835972
November 6th, 2006 at 06:28 pm 1162837736
first of all, thanks for pointing out difference. second, the generation definition is ambiguous. but according to Wikipeida entry on Generation Y, it begins around 1976 to 1980 and ends around 1995 to 2001. so i'll take a median on these values.
yeah, i guess i'm either the tail of Generation X or the head of Generation Y!
November 6th, 2006 at 08:17 pm 1162844233
no kidding, all (but two) of my offline friends live paycheck to paycheck. hehe, wait for a bit, the price of plasma tv has been coming down fast! of course, i'd need a big house to go with it :-)
November 6th, 2006 at 11:37 pm 1162856266
i know, i'm either the tail of Generation X or the head of Generation Y. maybe that's good for us, we have the best of both generations!