Do you have grandchildren in their late teens or 20s? Their generation, known as millennials, grew up with access to the internet, cellphones and other technology that previous generations could never have imagined.
Millennials sometimes get a bad rap as being entitled and self-focused. However, their relationship with technology has given them a unique worldview. They 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 has impacted 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.
While you may wish to impart some wisdom on your grandchildren, it also may be wise for you to learn a few lessons from them. If you’re preparing for retirement, you might benefit from a millennial’s approach to finance. Below are a few tips that older generations could learn from millennials and how you can apply them to your retirement:
Embrace the sharing economy to generate side income.
Sharing is a basic life skill most people learn in kindergarten. However, millennials have taken sharing to a whole new level by using it as a foundation to reshape the economy. The “sharing economy” is based on the idea that anyone can make money by sharing their house, car, tools, time or nearly any other asset.
For example, you could use your car to drive part time for a ride-sharing 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.
Cut back on purchases so you can fund meaningful experiences.
Many millennials say they would rather spend their money on experiences rather than on stuff. That could be a good 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 better manage your finances.
Your grandchildren are probably the most tech-savvy members of the family. Perhaps some of their technology isn’t your cup of tea. However, an embrace of technology could be helpful to you in retirement.
For example, there are a number of apps that 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 Fenton Financial Services. We can help you analyze your needs and develop a strategy. Let’s connect soon and start the conversation.
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