Let’s talk money.
Most of us bought into the “baby boomer” dream:
- study hard
- get a good degree from a good school to get a good job
- work your way up the ladder over many years (don’t get fired)
- buy a home
- retire at 65
- travel and enjoy your pension
Millennials are between the stages of 1-4 right now and we’ve realized that for the most part, this dream is a lie. Getting into a good school doesn’t guarantee a job. Highly qualified and experienced millennials find it difficult to secure employment. Even when we are employed, most people don’t like what they’re doing from day-to-day. Permanent jobs have turned into contract work and saving enough for a down payment seems to be more and more difficult when the cost of living and price of houses continues to go up.
So, what do we do?
Seek a new dream.
Mine looks like this:
- Earn as much money as possible providing value to others even if that means working several jobs
- Save the money I earn (and eliminate debt as early as possible)
- Invest that money
- Refrain from buying a house for the next few years and use a small portion of earnings and dividends to travel and enjoy life
Personal finance wasn’t taught in school and it’s a shame. Universities and banks benefit from our ignorance. Since university/college tuition is at a price few students can pay upfront, students are forced to borrow from OSAP and banks. Universities benefit from new customers students. Banks benefit from the interest paid on loans and the longer it takes a student to pay off his/her loan, the more interest a student pays.
To make money I run my own law practice and tutor for the Ontario bar exam and I am looking to take on one or two more jobs. I want to work and earn more because my fiancé and I sat down with a few very successful entrepreneurs in the last few weeks and listened to their life stories. Each of them had worked several jobs or 16-hour-days, five to seven days a week in their 20s and 30s. Now, in their 50s, one entrepreneur lives in a big house on Rosedale, owns two restaurants and travels 6 months of the year. Another entrepreneur has five beautiful kids, two luxury cars and owns the building his business operates from.
Their successes inspire me. Everyone has a different perspective on money. To me, money is freedom. It’s a reward for providing value to others. It’s the ability to travel when you want, to control your time, provide for your dependents with ease and contribute to society at a higher level by investing in start-ups, donating to charities, etc.
Everyone has a different perspective on money. To me, money is freedom. It’s a reward for providing value to others. It’s the ability to travel when you want, to control your time, provide for your dependents with ease and contribute to society at a higher level by investing in start-ups, donating to charities, etc.
Some things you can do to get started on building your own financial security are:
- Try your best to pay off your debt as quickly as possible – live frugally and take advantage of bursaries, loan forgiveness programs, etc.
- Learn how to invest money – WealthSimple seems to be a great up-and-coming resource and I have a promo code that allows you to invest your first $10 000 for free. Comment below if you’re interested!
- Seek ways to monetize your skills to benefit others – offer your services at a market rate, support your friends businesses, etc.
- Contribute to your savings accounts
While managing money is important, I always keep quality of life in mind. My fiancé and I make sure to travel at least twice a year (going to Paris next month!!) and I will splurge on the occasional date/girls night. My friends and I help each other save by hosting dinners/hanging out at each other’s places, taking advantage of Groupon deals, etc. I’m excited about building towards my wealth potential and I hope you are too!
Building wealth is a topic that affects all of us. How are you doing it? Do you have any tips to share? Feel free to comment below.