Graduation season is here again. Do you have a young family member who is 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 have a unique mindset that is heavily influenced by technology. 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.
As a baby boomer, you may feel that it’s your role to share wisdom with 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:
Earn income in the sharing economy.
Sharing is a basic life skill. You probably learned about sharing in kindergarten or even earlier. However, sharing has become an important component of the new economy. Today, the “sharing economy” is thriving, and it’s based on the idea that anyone can earn income by sharing their assets, such as their car, home, tools and more.
You may be able to generate side income in retirement just like many millennials do 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 money making opportunities.
Limit your purchases to fund your 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. Contact us today at TB Financial. We can help you analyze your needs and develop a strategy. Let’s connect soon and start the conversation.
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