Have you been interested more in going to places, meeting great people and experiencing authentic cuisines more than going after the expensive things such as owning a car or a house?
You are not the only one.
When I speak to my friends whether in the Czech Republic, England or other parts of the world, it seems we are driven by different things.
So, if you have been pushed by your parents or grandparents into thinking to follow their footsteps and believe the same values as they have, you no longer have to apologise for who you are!
The trend is changing. The bottom line is young people are measuring success differently. Most of them no longer crave owning a house / a flat and/or a car. This is more important to the older generations.
Research shows that the so-called millennial generation, who are now 30-35 years old, rarely buy houses and even more rarely — cars. In fact, they don’t buy super expensive things at all. In the USA, people under the age of 35 are called ’the generation of renters.’
Why is it so?
Here are a couple of reasons:
One of the reasons might be, some sociologist say, young people don’t have so many financial means and don’t want to sign up for long term financial commitments such as loans or mortgages.
The most important reason though is that the current generation is driven by very different values to their parents’ generation.
What is success?
The youth today has reconsidered the concept of success, which means:
- Successful people don’t buy property — they rent.
- If you want to be considered successful, invest in experiences: travel, do extreme sports, build start-ups.
The thing is that priorities of the youth are no longer prosperity and stability — well, to an extent, the main focus however is, flexible schedules and financial and geographical independence.
There is no longer the interest in being the Material Girl and Material Boy
Why buy a car when I can use a taxi, public transport or rent a car like Zip it or even rent a bike in London?
Or if you live in a remote places where you have to have a car, you get a decent second hand one to get from A to B.
Why buy a house – yes in a beautiful place but being tide up with minimum two decade long mortgage which may not allow you to go on holidays?
What’s more, when you choose the house or flat of your dreams:
- You don’t know how long you’ll stay where you live.
- You can take on a mortgage for 40 years, or you can accept the fact that you’ll spend your whole life in a rented place.
- You’ll probably change your job in the next few years. If you rent, nothing prevents you from moving closer to the office.
According to Forbes, modern young people change jobs every three years on average.
When you go on holiday why not to stay through Airbnb in any corner of the planet? You don’t have to overpay for rent or buy a property in a country you love.
The concept of ownership is no longer relevant
James Hamblin, The Atlantic’s columnist, explains the phenomenon as follows: ’Over the past decade, psychologists carried out a great amount of research proving that, in terms of happiness and a sense of well-being, spending money on new experiences is much more profitable than buying new things. It brings more joy.’
Is it true for you?
Experiences help us make friends
Social interaction between people is crucial to whether they feel happy or not. Talking to others and having a lot of friends makes you a happier person. But would people rather hear about how you spent a year in a wild country or about how many apartments you’ve already bought?
Here’s an extract from Hamblin’s article:
’Turns out people don’t like hearing about other people’s possessions very much, but they do like hearing about that time you saw Vampire Weekend.’
Remember that even a bad experience can become a good story. Material things cannot.
Does ring bell for you?
Buying things makes us worry
There’s one more element. The things we own, especially if they’re very expensive, make us worry about their condition. If you buy a car, you’ll flinch every time someone’s alarm sounds outside. If you buy a house and fill it with expensive items, you’ll be afraid of being robbed. Not to mention the fact that a car can be scratched or break down, and a super expensive TV might break after a year of usage. But no one can ever take away the experiences you have.
Just curious, how many likes did you get on FB when you went on holiday and how many when you got a new item?
Every purchase will go down in price over time
Our parents weren’t able to travel as often as we do. There wasn’t the possibility to have so much fun. They didn’t have so many opportunities to start a new business. Therefore, they invested in houses and cars, however, we don’t want to do that.
The value of houses go up and down and it is more long term, if not life long commitment, if we look at it from a business perspective. During a crisis, owning a property and paying a mortgage is not ideal.
Experience is the only thing that matters: it won’t go down in price, and no one can steal it.
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Skype: Lucie Patel Varekova
Email: [email protected]