Does being an adult require giving up on one’s dreams? For Millennials and Gen Z, this seems to be the case. The dream job, the dream house, or a reliable car, when you have student loans for a degree without post-graduation opportunities, credit card debt you can’t pay off, and a maximum hour limit, a part-time job (one or more) with no healthcare, no retirement, and no job security. Can Millennials and Gen Z afford to live?
With all the things from real-life technology that only existed in sci-fi films, to the ability to ride-share anywhere, and where door-to-door delivered food, be it restaurant fare or groceries, are available, why is the problem having the basics? Every day life is just not (as) affordable even after one’s expectations are significantly lowered.
Is a college education relevant anymore when this common academic thread is the majority of minority people’s story? Minorities, accustomed to having to be twice as good, are in danger of doors closing twice as fast in terms of higher education admissions, which were helping them make real inroads toward leveling the playing field. Now, leveling up is becoming less possible without leaving some of our people shut out and left behind.
Do Millennials and Gen Z need to wake up from the American dream and face the hard truths of this new reality? Chart a new course? Or play it less than safe and hope it will work out somehow? Here are some possible solutions.
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1. Accept reality, pivot, and plan as best you can
Accept the reality. Student loan debt, high housing costs, wages not keeping pace with the ever-increasing cost of living, and the economy all contribute to a lack of affordability of the basics. With so many financial challenges, the old pattern of college-career-home and auto purchases no longer applies. Plans to prosper, as a result, need to come from outside-the-box thinking since what used to work is no longer working for Millennials and Gen Z, especially. Throw in a desire for work-life balance and the stress of this continuously disappointing new reality, and it’s clear what Millennials and Gen Z are up against. To accept reality, pivot, and plan, Millennials and Gen Z must take what was a financial challenge and transform it from a life full of limits and its mental health impacts to including affordability as a crucial element of a redefined plan for success.
The once-certain paths to success are no guarantee. What is needed is to find a way to distinguish yourself from all of the similarly situated others. But how do you figure out how to write your own ticket of uniquely branded skills? Is it possible to overcome the challenges of seemingly unchanging circumstances that no longer lead to opportunity? Is accepting less with the hope of at least getting one’s foot in the door to do the grunt work and pay dues more luck than preparation? This requires a creative plan because even individuals with a golden ticket from selective, top schools and collegiate backgrounds, which typically lead to stable career paths, are struggling. Combine this with layoffs, and the competition becomes very keen for jobs that provide the basics, not the best.
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2. What are the basics?
What are the basics? Food, shelter, and reliable transportation are good starting points when you are accepting less to have just enough. Food may not be fast food (unless you work there) or restaurant delivery. It might not be healthy or in line with your social, economic, or political beliefs, which you adhered to while studying and striving to find yourself on someone else’s dime. Then you could afford to choose to eat only expensive organic, locally sourced produce from farmers’ markets, happy animals, or boutique grocery stores. You may have to switch from designer dinners to big box processed food hauls, and brown bag bargains for your work lunches. What constitutes basic food is debatable. Your financial situation influences how well you eat.
The issue of shelter is also constrained by finances. Finding affordable housing may require you to swallow your pride and accept what you can afford, especially if you’re on a zero salary or, in a more favorable but less desirable situation, if you’re underemployed or underpaid. The freedom you enjoyed of being on your own may boomerang you back to living under a more budget-friendly roof, either with your parents or a roommate.
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If moving back in with your parents is an option, it may be less than ideal, but both you and they have changed and now have new expectations. You might expect them to compromise. They may expect you to contribute to rent, utilities, and food—their basics. Initially uncomfortable, it will be a powerful motivating force to find a way through what many see as a step backward. Moving out from your parents and in with a roommate may be jumping out of the frying pan and into the fire, however. The shared space may be unaffordable on your own. Think carefully about this situation, as it could lead to stress and make it challenging to find a suitable roommate. If your current roommate fails to pay their share of the rent or decides to move out suddenly—perhaps to live with a partner or relocate to a different city or state—you may face difficulties. Additionally, they might be hard to live with. Work out the legal details, responsibilities or expectations before you live together. Shelter is basic, but what it looks like to different people is not.
Transportation, rain or shine, helps with increased access to better opportunities and more freedom, but if it is unreliable, it becomes costly to repair and hard to afford to replace. Depending on your location, occupation, or job site, public transportation might be a cost-effective option. Additionally, carpooling can serve as a more affordable and environmentally friendly solution. You can minimize the cost of time and the stress of travel by living near a bus line, subway, or within walking or bicycling distance to work if you do not have an automobile.
3. The importance of certified skills and applied knowledge
If you have a liberal arts education or a degree in a field that isn’t directly applied, you’ll soon realize that the job market highly values certified skills and professional certifications, often as much as it values prior experience. However, there isn’t always a straightforward way to gain that experience. A major in any field without a master’s or Ph.D. places you behind those who have proven job skills. While you chose a major that reflected your passion, others without post-secondary degrees gained valuable hands-on experience. Your university peers, who are your competition, focused on academic disciplines that lead to secure careers with measurable outcomes. When it comes to finding a job that pays a livable wage and provides benefits like healthcare, holidays, and retirement, those with certifications and relevant skills have a significant advantage.
4. The one job minimum
If being affordable means being able to cover basic living expenses by earning a decent wage, then it becomes clear that, depending on your job, a lower salary may not be sufficient. For many, having just one job could be the starting point, especially if it doesn’t provide genuine opportunities for advancement within the company.
To meet long-term financial needs, you may find it necessary to take on an evening job, whether in your field or not, and consider a weekend side hustle. While having a single job can offer a balanced work-life schedule with ample free time, it often comes with limited income. Conversely, adding a part-time position or finding extra hours on weekends can increase your earnings, but it may also reduce your free time.
Ultimately, the decision is yours. In the face of financial challenges, many Millennials and Gen Z individuals realize that one job alone may no longer be enough.
5. Realize there are no guaranteed paths to success
Working hard or hardly working may not always be your choice. However, if you commit to putting in the effort, maintain a strong work ethic, remain flexible, and embrace unbeatable optimism, you will find success in unexpected places. It’s important to recognize that there are no guaranteed paths to success anymore. The days of having a single job for twenty-five years and receiving a pension as a reward are long gone. Today, your individuality, interpersonal skills, certified qualifications, and proven experience create a world of opportunities that were previously unconsidered for Millennials and Gen Z.
Competition among qualified individuals is now part of the new normal. No job is beneath someone unemployed. To afford the basics as a Millennial or Gen Z, you often need to exchange more of your time for more money. What you studied matters less than your willingness to work hard to secure your essentials.
The world owes you nothing. Once you accept this and decide to do what it takes to afford the basics, you are on your way and will soon be able to stand on your own feet. Never stop reaching for the stars of success, but you may have to expand your path to get there.
