Millennials approach their money differently than baby boomers with how they handle and manage their finances.
Although baby boomers are knowledgeable about handling their money and have learned how to grow their wealth, there is still plenty that they can learn from millennials.
To grow your personal wealth and gain insight from the wisdom of a younger generation, there are several lessons to learn that you can benefit from in the new day and age.
1. Stay updated on the latest investing advice
Younger people approach their investments differently than the older generation by staying updated on the latest investment news and advice that is available.
This allows them to become more engaged in the process with how they plan and save for retirement with specific goals that they’ve created for their future.
Baby boomers may stay updated on the news, but they often fail to get timely news and information that is more current with the market.
Avoid relying on slower news sources that include the newspaper or the evening news, which can make you miss out on important investment opportunities that can pay off.
According to Milken Institute, baby boomers need to connect to the Internet and understand how to utilize it to ensure that the tools of technology that are available can benefit them long-term.
2. The best way to learn is to jump in with both feet
Baby boomers may take their time finding different resources to use when it comes to managing their money, but this can make it difficult to learn at a faster rate.
According to Huffington Post, it’s important to avoid looking for an instruction manual with your approach to learning and to utilize technology when maintaining your finances.
Follow the lead of millennials by learning from experience and by adopting their mindset when it comes to handling your finances, which will lead to larger payoffs in the long run.
3. Avoid bad debt
According to Forbes, the debt that continues to grow in the U.S. is due to the spending habits of baby boomers, which has now accumulated to $17.8 trillion dollars.
Millenials are feeling the weight of the deficit and are less likely to acquire bad debt that is considered to be money lost, which becomes a burden.
The younger generation is more cautious when it comes to using credit cards or buying fancy vehicles because they have a greater understanding of how acquiring too much debt can slow down their success and stability.
4. You can save money on the sharing economy
Millenials aren’t afraid to save money by taking advantage of the economy with the use of different services that are available.
Consider using transportation services to avoid purchasing a car and paying for the maintenance and auto insurance coverage.
You can also resort to renting out homes to save money on hotels when traveling. This makes it easy to avoid having fewer material possessions, which often costs a significant amount of money to invest in and maintain over the years.
5. Invest in experiences rather than in material possessions
Although baby boomers are known to spend their money on material possessions and can accumulate a significant amount of items that they own, millennials understand the value in paying for memorable experiences.
Investing in traveling or fun experiences can prove to be worthwhile and lead to a higher quality of life rather than accumulating more belongings that don’t contribute to your happiness.
Millenials have learned from the example of baby boomers that owning a large house or a luxury car doesn’t contribute to overall peace and joy in life, which had led them to spend their money on activities that bring them happiness.
Millenials live for today and aren’t worried about acquiring items to show off to their friends or family members. The younger generations don’t place as high of a value on excess materialism and understand that it’s only temporary.
How do you find these investment tips? How do you manage your finances? Let me know in the comments below!