20-Somethings… The “American Dream”, Watch Out!
Hey there! Welcome to the wild world of your twenties. Today, let's talk about chasing the American Dream.
The “American Dream”, during your 20’s… go to a cool college, find the killer apartment, buy an awesome car, tie the knot at a big fancy wedding, and purchase the beautiful new house. All before 30!
Oh, and rack up $400,000 in debt to kickstart the rest of your life. Ugh!
Student Loan Showdown – $60,000 Average student loan debt in the US.
So, you've officially crossed the stage, flung your graduation cap, and then came the reality check. Your student loans are here to party, and they've got a cover charge. It's like the gift that keeps on taking, right? Well, here's the deal: get strategic about college and those loans so you can start building real wealth. Investing in yourself has HUGE, lifelong returns, so do it but wisely.
Your Killer Apartment - $26,000 Per Year?
No doubt living solo, in a trendy area, in a nice pad would be awesome. The “wealthy minds” will consider the Opportunity Cost, which could be listed at $200,000+ in this scenario. Yes, you can still “live for today” and “for tomorrow” simultaneously. Slowly increase your lifestyle with your income and resist going BIG until your 30’s.
Wedding: Let’s Talk Budgets, Not Busts - $12,000 Average wedding debt.
Love is grand, and you're ready to make it official. But, hey, walking down the aisle shouldn't mean walking into bankruptcy. Think deeply before throwing a celebrity-style wedding just because others do. Your love story is the real gem here, not the number on your credit card statement.
Your Car, Your Rules, Your $30,000 loan debt
Cruising in a brand-new car can be intoxicating. But let's think about this: The decision to spend big on a car in your 20’s, robs cash to kickstart your money tree and wealthy freedom. Resist until your 30’s.
Home Sweet Home, $300,000 loan debt
Owning a home is like the ultimate dream, right? But let's be real; real estate can be the real deal in terms of expenses. Be “investor” wise and ensure this becomes an appreciating asset for you and not a financial nightmare.
The Magic Pot of Gold
The 20’s debt / death trap is real. At 30 you could easily be staring at over $400,000 of freedom crushing debt. Or you could be sitting on a magic pot of gold. What if you start your adult journey with “money making” assets working for you instead of against you?
5 Action Steps to take right now, if you desire wealth and freedom in your future:
1. Decide how much wealth and freedom you want and by when
2. Find your sweet-spot for balancing “living for today” vs. freedom for tomorrow
3. List 10 ways you will use the special time of your 20’s to accelerate the growth of your money tree. Aka, magic pot of gold.
4. Start investing in “Appreciating Assets” TODAY. Not tomorrow. TODAY.
5. Calculate your Appreciating Net Worth today. And track it yearly.
If you’re curious to learn more about using your 20’s to build big wealth, opportunity costs, appreciating assets, or anything else, drop a comment.
Happy to help!