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“On the surface, plenty of Boston millennials are earning, spending, and having a blast. But beneath the veneer of $17 margaritas and shopping trips around the Seaport, many are living with debt – and lots of it. Is buying the good life on loan the new normal? Or is it plunging a generation into an early midlife crisis?”

A friend recently sent me over this clip from Boston Magazine, which obviously resonated with me!

Here are my takeaways:

There’s no question many young professionals are living beyond their means. To act like this is something new, however, would be extremely hypocritical since most of our older generations are ALSO woefully unprepared for financial independence (retirement). Young people living for today and not worrying about the future (shocker).

There’s also no question that Instagram culture is influencing our ‘keeping up with the Joneses mentality’. It’s HARD to forgo indulging when you are constantly bombarded with pictures and videos of your peers ‘having the time of their lives’. But, like most things in life and personal finance – there is a balance!

Should a young person not be allowed to go out to dinner with friends because they have student loans? Should every last dollar of disposable income be put towards debt repayment or growing your net worth? If you have that level of discipline and want to sacrifice to get ahead, I applaud you. I’m more in the camp of living for today while still planning for tomorrow. As long as you have an adequate savings rate (which includes debt repayment) and are not leaving free money on the table via lucrative employer benefits (such as equity compensation, employer matches, etc.), I see nothing wrong with ALSO enjoying yourself in the present.

One thing I will suggest and strongly advocate for is making tradeoffs when it comes to location and where you live. You don’t have to live in the Seaport to experience the Seaport. What’s the point of living in the Seaport to pay $2,500 for a studio apartment when that leaves you no disposable income for the experiences you REALLY enjoy ( going out to dinner with friends, etc.).

I always advocate friends, family, clients, etc. to think hard where their money is used to derive happiness. I’ve found for most, it’s the ability to have the flexibility to share experiences with others. Think about what tradeoffs you can make to give yourself that flexibility.

Lastly, let’s all agree to not let flexing on the gram influence OUR spending decisions. Personal finance decisions are PERSONAL, we don’t know someone else’s balance sheet and cash flow, so it’s best to focus on our own.

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