Hi Everyone,
I hope all of you are having a great weekend. I wanted to switch it up today and talk about a trend I have been seeing on TikTok and other platforms for months now. Lately, many people are going to social media to tell the world just how much they are struggling financially. There are thousands of videos that have similar messages just like the one below.
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This breaks my heart and I’d like to talk about this more in depth. How is it that our younger generation is struggling so much? How can they earn more? Can starting a side hustle help? So buckle up, because I am going DEEP on this one and we will pop out in the end with ways to help :)
Things ain’t what they used to be
I’ve heard people say, “This younger generation is lazy”, “They don’t want to work”. I think it’s the complete opposite. This younger generation has been paying for education, working multiple jobs, drowning in debt immersed inside an environment that has a rising cost of living that the older generation didn’t have to grow up in. There are plenty of people working DoorDash to make ends meet. Things ain’t what they used to be…
Let’s look at this video comparing average housing prices from 1980 to 2023:
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But, growing housing prices and low salary rates are just the beginning to this story.
What really has punched this younger generation in the face is student loan debt. This nation tells our high school graduates to immediately go to college if they want to make a good living. Many of them will take on thousands of dollars in student loan debt on a college degree that has low marketplace value. $70,000 for a Bachelor’s degree in Business with no actual business experience or $50,000 for a liberal arts degree and then these young men and women in their twenties are baffled when they are offered jobs between $35,000-$45,000. They are pressed with the questions - How am I going to afford my student loan payment and my rent?
According to educationdata.org
The average borrower takes 20 years to repay their student loan debt.
The average student loan accrues $27,000 in interest alone over 20 years (at the rounded average interest rate of 6%).
Up to 42% of the average borrower’s total cost of repayment is generated interest.
Can you imagine trying to pay $2000 rent, $400 student loan payment on a $40,000 salary? I didn’t factor in car payment, groceries, gas and the random things life throws at you like flat tires and a trip to the dentist.
Well, what if they just work harder?
Working harder isn’t going to fix this one.
recently covered this in his post. I read this post last week and it got me pumped up. Jordan’s right, working harder isn’t going to cut it in this economy as he touches on the national debt in United States and the decreasing purchasing power of the dollar throughout the years. Look, another $15/hour job in the evenings or on a Saturday isn’t going to make a huge dent trying to cover your massive student loan debt and your $1000/month daycare bill. Highly encourage you to read this article as it is another piece to the puzzle that is making many feel the financial struggles.Now, not only is this younger generation fighting student loan debt, high rent and salary that isn’t keeping with the cost of living, what is the next step in their life?
Ahhh, they are finally getting married and will soon be starting a family :) Buckle up, because nobody wants to talk about this one.
Infertility and the cost to build a family
1 and 8 people will struggle with infertility. The cost to build a family isn’t very cheap either. With IVF averaging $20,000. See the data from Fertility IQ below.
What about the cost of adoption?
According to Family Equality, this is the average cost of adoption. I can vouch for the cost of domestic adoption because this is how we have grown our family :)
Foster-to-Adopt: Adopting through the foster care system can generally be accomplished for under $2600, and often entirely for free, as these adoptions are through the public child welfare system.
Domestic Adoption: Adopting an infant domestically through either an adoption agency or an independent attorney ranges from $20,000-$45,000 depending on where you live and the agency or attorney you choose.
I won’t mention international adoption because it’s wildly more expensive.
Wow
Now imagine:
$2000 rent
$400 student loan payment
Food, Gas, Phone bill, Car payment, Wedding, Kids (hopefully infertility doesn’t doesn’t factor in), and Fun (maybe).
and oops flat tire, dentist bill, and the furnace is having a little trouble.
What can we do?
Well, first try to stay away from debt. Debt isn’t helping here.
If you are going to college, make sure you are choosing a career that has a great ROI (return on investment).
Look into trade schools. Plumbers are making $100,000/year and do 4 years of trade school that was paid for by their employer, plus they get paid to be a plumber while they are learning. The trades are going to be a massive opportunity for this generation because they are actual skills that the world needs. We need plumbers, HVAC techs and electricians.
Also, be observant in your career. Know when to move on to increase your income. Figure out a way to grow, whether it is at your current workplace or a new one. Furthermore, layoffs are happening and the job market can shift. It doesn’t hurt to Network on LinkedIn and have your Resumé ready. Pay attention to signs of layoffs.
did a great job explaining this regarding warning signs of layoffs. I would highly recommend you read it.What else?
You need to evaluate your skills. Everyone has skills they are sitting on and can make money from. The world needs your skills! But, it has to be something society wants to pay for. Maybe it’s mowing grass, organizing and cleaning refrigerators, private soccer lessons… you know what it is.
I’ve shared the story before, but I once mowed lawns and charged $50/per lawn. Each lawn took me about an hour. I only had my truck, push mower, electric weed trimmer and blower to get started.
Here’s what I did to get customers - you can do the same thing :)
I made a website on WIX and only did the free version. It was easy because WIX is drag n’ drop. If you can send a photo on your phone, then you can make a website!
Then I made a Google Business Profile for my mowing business. This allowed my mowing business to show up on Google when people in my town searched for mowing or lawn care.
Here are the steps to list your business on Google Business Profile:
Sign in to Google: Visit the Google My Business website (https://www.google.com/business/) and sign in with your Google account. If you don't have one, you'll need to create a Google account first.
Enter Your Business Name: Once signed in, click on the "Manage now" button or "Start now" button. Enter your business name. If your business name doesn't appear in the dropdown menu, select "Add your business to Google."
Enter Your Business Address: Next, you'll need to enter your business address. If you have a storefront or physical location where customers can visit, enter the address. If your business operates without a physical location (e.g., a service area business), you can choose to hide your address later.
Specify Your Business Category: Select the most relevant category that describes your business. This helps Google understand what your business is about and display it to relevant searchers.
Add Contact Information: Provide your business phone number and website URL. This allows customers to contact you directly and learn more about your products or services.
Verify Your Business: To verify your business, Google will send a verification code to the business address you provided. You can choose to receive the code by mail or phone call. Once you receive the code, enter it in your Google My Business dashboard to verify your business.
Complete Your Profile: After verification, complete your business profile by adding details such as business hours, photos, a description of your business, and any additional information that would be helpful for potential customers.
Optimize Your Profile: Take advantage of additional features offered by Google My Business, such as posts, reviews, messaging, and insights. Regularly update your profile with new information and engage with customers to enhance your online presence.
Monitor Your Listing: Keep an eye on your Google My Business dashboard to monitor your listing's performance, respond to customer reviews, and make updates as needed.
You can also leverage a Nextdoor Business Listing, Bing Business Listing and local Facebook sale groups specific to your town to gain customers. Network on Instagram and Invite your Facebook friends to your business page.
I had 4 lawns that I mowed during the week. At some points during the mowing season I had 5 lawns and was constantly turning down others because I was also working a 9-5.
You can do the same with other services too like house cleaning, car detailing, window washing, power washing, this list could go on forever. I think this would have more impact on you and your family than trying to find another $15/hour job in the evenings or on the weekend.
Working harder won’t get you out of massive debt in society with an increasing cost of living. I can dig holes all day on Saturday for $15/hour, it’s going to be tough to blow through a mountain of student loan debt and high rent. But, I do think if you are smart and strategic you can help avoid some of these pitfalls the younger generation has been faced with.
There is no shame in:
Living with your parents for a few years to get rid of debt and save up for a down payment on a house.
Living with roommates to lessen the blow of rent.
Not taking student loan debt.
Going to a community college.
Buying a used car instead of new.
Not upgrading your phone every year.
Cooking at home.
Building a business on the side while working a 9-5.
Networking to find a better paying job.
Wife going part time or having family help (if they want to) to help avoid daycare costs.
Moving closer to family to help with daycare costs.
I could make this list incredibly long, but what I am trying to say here is be strategic and do what you have to do for you and your family to make it.
Last words
Educate yourself and study what is happening around you. Do this to better prepare for yourself financially in this weird economic time. Find resources that can help you and your family.
I know this newsletter was very different from what I normally post, but I felt like I needed to write it because I Care.
Thank you for reading this. Hope you all have a wonderful weekend :)