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Come On Gen X - What's Up?

By Todd and Danielle Millar

Services for Real Estate Pros with Glenn Simon Inc.

November 08, 2007 06:54 PM

gen x

I am worried about my generation. They didn't want anything and now when they realize, "Hey money is all right!" They are so in debt that they can't get ahead nor can they save for their future.

This article is such an eye opener for me, I am so happy that I made the choice to give up new clothes, that cool car and nice furniture for a few years to pay off my student loan and all my credit card debt. I am also happy that I learned to invest and wait, to not let my current appetite steal from my future feast.

Facts From OppeinheimerFunds

* 62 percent say they live paycheck to paycheck

* 56 percent have an outstanding credit-card balance of $3,000 or more.

* 62 percent of women say they have not bought any investment products.

* 45 percent of women would buy 30 pairs of shoes before saving $30,000 in retirement assets.

* 65 percent of women and 48 percent of men said they do not know how a mutual fund works.

* Nearly 65 percent did not know that when interest rates go up bond prices typically go down.

* 38 percent of women have not started saving for retirement.

"Generation X may have shed the slacker image over the past decade as its members moved beyond coffee shop jobs and into the suburbs, SUVs and corporate boardrooms. But when it comes to saving for retirement, the description still fits.

Most Gen Xers, the oldest of whom are heading into their 40s, are woefully behind in saving for retirement. Nearly half of the 5,000 Gen Xers surveyed by Charles Schwab this year said they are so saddled with debt or live on such tight budgets they can’t even think about saving." Read Full Article Click Here

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Tony & Darcy Cannon

Aubrey and Associates Realty - Layton, UT

The C Team

Todd and Danielle, I too am worried about our generation. I think that a little perspective might help explain, not excuse our generations fiscal tendencies. A couple of weeks ago in the letters to the editor a veteran of the Korean War wrote that upon returning home he bought a home and his mortgage was just less than $100 per month. He was getting paid $125 a week at the time, so the first paycheck each month paid the mortgage, the insurance and all the utilities. The second paycheck made the car payment and bought the groceries, the latter two paychecks were saved or went to buy other things that they needed. I guess what I am trying to say is that the salaries have not come anywhere near close to keeping up with the costs of living. That was what the gentleman was trying to say in his letter to the editor, that he didn't know how people today slept at night, not being able to save for that rainy day and having every penny that they got paid going to pay bills. Not an excuse, because we have lived beyond our means, but as this gentleman pointed out, some of the young people that he knew that were in this position lived in his neighborhood. So he was at least comparing the same house type with his that he had purchased all those years ago. Just food for thought.

Nov 08, 2007 07:58 PM

Loreena and Michael Yeo

3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX

Real Estate Agents

I'm a Generation X-er too. But unlike "worrying", I actually do see how much one can get ahead if they choose not to live the "average" lifestyle........ It's sad that this country flourishes on credit. The facts you shared is amazing. Wow, just wow. How much more we could do if we just think right?

Nov 08, 2007 08:39 PM

Todd and Danielle Millar

Glenn Simon Inc. - Edmonton, AB

Nineteen years of excellence!

Tony - Thank you for your well thought out comment. I think you have a good point but people in our generation aren't as financially savvy as they could be. I also think he had a lot less temptations than we do now.

Loreena - I have to agree with you. They are so used to having it now and paying later or even worse they just forget where the $3,000 visa balance even came from!

Nov 09, 2007 05:10 PM

Gary Miljour

American Financial Network, Inc. NMLS#207208 - Southern Pines, NC

Mortgage Originator NMLS Licensed in AZ and NC

These statistics are scary. I see a lot of clients in my office that are trying to buy their first home and have NO assets at all. That is all generations across the board. The US is in some big trouble if we cannot learn to tighten our belts a little and become a nation of savers and investors vs. consumers. One thing I do with my friends (Gen Xers) when they ask me if they should buy something is ask them if its something that will go up in value or down. If they tell me down, I explain how its a bad decision.

Nov 09, 2007 11:21 PM

Todd Clark - Retired

eXp Realty LLC - Tigard, OR

Principle Broker Oregon

I'm also embarrassed to be considered in this group and wish they would call me Generation X and the slightly younger group Generation Y as in "Y do they even bother getting out of bed"

Nov 11, 2007 04:20 PM

Gary - I have read about this. It scares me because what will happen to them all if they miss one paycheck.

Todd - I thought the book was cool but beyond that I want nothing to do with being a slacker. I jump out of bed and yell "I feel terrific"

Nov 11, 2007 10:49 PM

Come On Gen X - What's Up?

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