Building for the Future

"The only way to do great work is to love what you do." - Steve Jobs

We continue to face cost of living challenges and opportunities. We all have our own ways of managing money and building for our financial futures. There are realities we must deal with in the present, making decisions for the now and for building a better future. 

Homeownership

What we should consider in our struggles to own our own homes.

• Economic Factors: High housing costs, stagnant wages, and significant student debt have made homeownership more challenging for everyone whether you were a previous property owner or a first timer.

• Renting Reality: All generations find themselves renting longer than those who have gone before. Rent is a sizeable portion of income, reducing the ability to save.

• Alternative Solutions: Some are exploring innovative housing solutions, such as tiny homes or co-living arrangements, to combat prohibitive costs.

• Saving to own a home leaves no room for frivolous spending.

Student Debt and Education

Education plays a crucial role in shaping finances:

• Most Educated: The most highly educated are in the best position to own homes, but the cost of education comes at a significant cost.

• Student Loan Burden: Many are grappling with substantial student loan debt, which impacts their ability to save and invest.

• Continuous Learning: Despite the costs, valuing education and investing in ongoing professional development and skill acquisition, builds your future.

Saving and Retirement Planning

Be financially savvy:

• Retirement Savings: Over a third of futurists have a financial plan, setting aside an average of 12% of their earnings for retirement.

• Emergency Funds: Many prioritize building emergency savings to provide financial security.

• Financial Freedom: Futurists often save with the goal of achieving financial independence and having the freedom to pursue their passions.

Consumer Behaviour and Spending Habits

Spending habits reflect values and economic realities:

• Quality Over Quantity: Prioritizes quality over quantity, spend more on sustainable and ethically produced goods.

• Experience Economy: Value experiences over material possessions, allocating more of your budget to travel, entertainment, and personal growth activities.

• Health and Wellness: There's a significant focus on health, with futurists willing to invest in fitness, organic food, and wellness products.

Entrepreneurship and Side Hustles

Futurists exploring alternative paths to financial stability:

• Gig Economy: A considerable number of futurists participate in the gig economy, either as a primary source of income or to supplement their earnings.

• Start-ups and Innovation: Futurists of all ages show a strong enterprising spirit, launching innovative start-ups across various industries.

• Passive Income Streams: Many futurists are exploring ways to create passive income through investments, digital products, or online businesses.

Impact of Technology on Financial Management

Technology plays a crucial role in how futurists manage their finances:

• Digital Banking: Embrace online and mobile banking, prefer digital solutions for managing your money.

• Investment Apps: Consider using investment apps and robo-advisors to start investing with smaller amounts of money.

• Financial Education: Online resources and social media have become important tools to educate ourselves about personal finance.

Observers of the millennial generation have found financial behaviours that benefit all generations. I prefer to call people of all ages, not just from one generation, who prepare for an independent future, futurists. it's clear that futurists adapt to economic challenges with resourcefulness and innovation. While they face significant obstacles, particularly in housing and student debt, futurists redefine success and financial stability on their own terms. Their focus on experiences, sustainability, and purpose-driven spending is reshaping consumer markets and forcing financial institutions to evolve.

In our next blog post, we'll learn how millennials are driving corporate social responsibility and influencing businesses to adopt more sustainable and ethical practices. Can futurists benefit from the millennial generation, of course they can.

This blog was written with the help of Gemini.