Millennials get a bad wrap.
Apparently when they aren’t killing the housing market, the diamond market, and Hooters; they’re making avocado toast.
They are the topic of much conjecture and study because economists and marketers don’t understand them. What motivates them? How can we get them to buy our product? How do we need to market to them? Is it Instagram? Is that it? Should we be on Instagram?
The reason why I am betting on them (and trying to adopt a similar philosophy) is the FIRE movement (Financial Independence, Retire Early). Millennials are bucking the system and changing their situation by choosing to live with less. It is not about owning things, but about experiencing things. And it is a damn good thing too since the planet is going into debt, and has been since 1986.
If you are wondering about what I mean by that that; is one only has to look at the most. disappointing. generation. ever. the baby boomers. In 1986, Ronald Reagan was president and the peace and love generation of the 60’s had given way to trickle-down economics and new wave. The environmental movement which started with the hippies gave way to the coke and Armani suits of the yuppies. It was the point at which human consumption passed what the planet could replace. This is commonly known as the ecological footprint.
When we talk about the economy there is a belief that more is better, that infinite growth is sustainable. Recessions (a decline in GDP for two successive quarters) is a bad thing and a depression is a terrible thing. There is the belief that we should own bigger houses, drive bigger cars, eat bigger meals. However, infinite growth is impossible and eventually what goes up has to come down.
This is there the FIRE movement comes in. Vicki Robin wrote a great book called “Your money or your life“. And in it she describes the steps to financial independence.
Step one is to understand your place in the economy. You are an autonomous being. You have a relationship to the economy and advertising that drives it. Your money is your life! The money you spend was paid for with your time and to quote Henry Rollins,
But ultimately, that the choice is yours and if you choose to engage you do so of your own free will whether consciously or unconsciously. You are not a wage-slave or beholden to anything within the system unless you choose to be.
Step two is getting out of debt. The easiest way to get out of debt is to not get into it. But it’s hard. Ever heard of “retail therapy”? Or have a closet full of clothes you don’t wear? Saddled with student debt?
You need to break that situation by any and all means. If it means getting a roommate, or brown-bagging a lunch, do it. There are lots of help groups, and if you can chip away at that debt you can get yourself in a position where you can begin to save.
I recommend watching “Til debt do us part” with Gail Vaz-Oxlade if you are looking to get started
Step three is to save. You should have 6 months emergency funds put away. This means if you had no money coming in for 6 months, you could pay your condo fees, cover expenses like food, electricity, gas, and not go into debt. Once you are saving, you can invest your money to the point where the interest it generates can provide a modest income. At that point you can stop working.
That amount of money required, that income needed, is unique to you. Some people need a million in the bank, some need only $300,000. What that does is frees you up to make decisions around how you want to spend your time, and what you want to experience with that time.
Millennials are not selfish. They are self-aware. They have looked at the giant ponzi scheme that is the economy and opted out.
I want to join them.