For the first time in American history, a significant number of 30-year-olds are not as financially well-off as their parents were at that age. Recent data and trends indicate that many of those considered "Millennials" and "Gen Z," cite factors like high debt, low home ownership, and stagnant wages as reasons they have fallen behind. Here is my attempt to examine some aspects of this problem, and offer potential solutions.
How did you get here?
You may think the boomers ruined everything… and maybe some (not all) of them did. They weren’t trying to make the world harder for those who came after them; they were just focused on improving things for themselves. Through a combination of good luck and the power of sheer numbers, they were able to mold the system. Once these individuals tasted the power that came from that demographic shift and wielded it for their own benefit, they got hooked. They benefited, and they wanted more. They gained power—and didn’t want to give it up. This explains why we have the oldest president in U.S. history, 23 members of Congress over the age of 80 (including one over 90!), and why the average age of the last ten Justices to leave the Supreme Court was over 80 (three of whom died rather than retire).
Where did that leave you?
You got left without an on-ramp to the good life. The “American Dream” of owning a home may seem permanently out of reach. The stock market keeps hitting all-time highs and hasn’t offered you the bargain basement buying opportunities of a tech bubble bursting or a great recession. An aging workforce isn’t retiring, leaving fewer opportunities for younger people to climb the ladder. And pensions? Gone. Unions? Vanishing.
What can you do about it?
Stop drinking fancy coffee!...just kidding…that won’t help, no matter how many times some asshat on the internet tells you otherwise. Instead, you will need to make bolder, more impactful moves as you navigate life...and don't expect everything to work out perfectly.
First, forget about the “paint-by-numbers” version of life that you’ve been taught. It might be fine for some, but it might not be right for you. Don’t just accept the steps others have followed unquestioningly. Ask if each is truly right for you.
- Get a college degree
- Get a job
- Get married
- Buy a house
- Have some kids
- Retire at 67.5 years old
Many people look at that list and think, “Of course, that’s how life works.” Those things, after all, are the very toll gates in life that they were programmed to walk through for as long as they can remember. It’s what they saw their parents do, and they did alright!
You are not your parents. These are not those times. Consider not doing each of those things. A college degree may not offer the return on investment you expect. Starting your own business could be more fulfilling than working for a big corporation. Renting might make more sense than owning a home. You might enjoy the single life and/or dislike children. And maybe you love your work so much, you never want to retire! All of these choices are valid. Flip over the etch-a-sketch that is your vision of the future, give it a shake, and start with a blank screen (ok. I just dated myself).
Some Broader Thoughts to Consider
There are a few broad notions that I would like you to consider as we mentally rebuild your future without the baggage of societal norms and expectations. The first is that it is very unlikely that taking ordinary steps will lead to extraordinary outcomes. If you follow the same path as everyone else, you’ll probably end up with the same results. This may have been ok for other generations, but in your case, “what everyone else has,” appears to suck. If that’s not good enough for you, then you must be willing to be bold.
Let’s start with the basics. Where should you live? While there is some disagreement between data sources, best estimates indicate that over half of Americans die relatively close to where they were born. While there are certainly reasons why this may make sense, I suggest that you discard the assumption that you should stay where you are. I live in an area where the cost of living has gone up substantially in the last several years. This includes almost all costs, but the price of housing has increased most notably. The best solution for many people who were born and raised here has been to simply leave. People are not trees, after all, and our roots are only metaphorical. While everyone has a human right to have a place they call home, not everyone has a right to live wherever they want. In my travels, I’ve visited plenty of lovely places where high costs make it unwise for me to live, so I don’t move there. Today, there are wonderful opportunities for a young person to build a great life at a fair cost in places like Tulsa or Indianapolis. I’ve personally visited both cities and loved them. Both are affordable and great for starting a life. These cities are even listed in U.S. News & World Report’s “25 Best Affordable Places to Live in the U.S.” If you don’t like those two places, maybe somewhere else on the list will call out to you.
I can already hear the arguments about what you’ll miss if you leave your hometown. But here’s the good news: the world is smaller than ever and keeps shrinking. It’s easier than ever to stay connected with friends and family. The cost of travel is near the cheapest it’s ever been. Call. Visit. Will it be the same? No. This may just be part of the price you will pay for an extraordinary life.
The True Cost of “The Good Life”
Understand this: your 9-5 job might not give you everything you want. I remember a piece of advice I got from a seasoned coworker when I was stuck in a miserable job at a Fortune 100 company. He told me, “Don’t think you’ve sold your soul to ‘the man.’ You’re just mooching off him for a while.” He suggested I start a “side hustle.” I didn’t take that advice at the time, but I did take his advice to always consider the corporate world to be a highway and I was ever on the lookout for my off-ramp. I tried once. It didn’t go well. I tried again, and again until it turned out wonderfully!
You have to take chances. America may be the most forgiving place on earth for those who fail while chasing something big. If you don’t succeed right away at doing something extraordinary, mediocrity will always have space for one more. Go back, gather up your resources, and try again. Don’t be afraid to switch jobs, either. Studies show that job-hoppers tend to have better career outcomes, as they develop diverse skills in different environments. Strategic job changes can lead to faster salary growth, too. The days of staying at one company for 30 or 40 years, to retire with a gold watch and a lifetime pension, are mostly gone—though some great employers still exist. It is ok to only show an organization as much loyalty as they are likely to show you.
Finally, stop comparing your life to the Instagram version of other people’s lives. It will only make you feel like everyone else is doing better. Most likely, the person posting the perfect social media life is buried in debt. I firmly believe you can have anything you want—you just might not be able to have everything right now. Figure out what matters most to you, and be willing to pay the price for it.