Do you have millennial grandchildren? Perhaps more than any other generation, millennials are heavily influenced by technology. They grew up with access to the internet, cellphones and other technology that previous generations could never have imagined.
Millennials are sometimes generalized as being entitled and self-focused. However, their relationship with technology has given them a unique perspective on the world. 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 affected the thinking of millennials. They have been impacted 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.
It’s usually a grandparent’s role to teach lessons to grandchildren. However, there may be a few lessons your grandchildren can teach you. 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.
Most people learn to share as a young child. 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.
As a retiree, you can participate in the sharing economy to earn extra income. For example, you could use your car to drive part time for a ride-hailing 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 side income opportunities.
Buy experiences, not stuff.
Many millennials say they would rather spend their money on experiences than on stuff. You may want to consider that approach 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.
You can fund your dream experiences by cutting back on other purchases. 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.
Don’t be afraid of technology.
Do you turn to your grandchildren for tech support? Your grandchildren may be glued to their phones and tablets nonstop. 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. Hal Hammond in Sarasota can help you analyze your needs and develop a strategy. Let’s connect soon and start the conversation.
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