Hey Jessillenials
As a millennial myself, I see first hand the struggle to build a stable life for yourself when fiat is so hard to save in, and debt is your only option to keep up with everyone else. Home prices are at all-time highs, bonds are at all-time highs, stock markets are at all-time highs, and there are very little obvious places to put your money that will generate enough for you to build wealth.
So millennials turn to student loans, credit cards, home loans and auto loans to finance their lifestyle and then hope they can pay it off with cheaper fiat as it gets devalued in the future.
The idea behind let's say a home is to take debt, purchase something that increases in nominal value and pay it back with money-hat inflates purchasing power away, that way you're using cheaper fiat to buy for something that holds value better.
However, with flat wages for most of us, cheaper fiat doesn't exactly help as much as it should, and we've started to see the limit or range of this arrangement.
Selling more years
Believe it or not, but there was a time when cars were purchased with cash, now you can finance them up to 5, and even 7 years on a depreciating asset, that is nuts. Yet, it's become the norm as financial institutions continue to push for more credit creation to hit targets.
Home loans have moved from 10 years to 20 years, 30 years, 50 years, eventually, at this rate, it will be 100 years. You realise when they give a criminal a life sentence that only means 15 years.
There are now students who have left university and are in their late 30's still paying off debt, 10/15 years later.
We've taken the concept of debt and pushed it so far that it has become servitude. It's gotten to a point where even if you have the ownership rights; you'll never own that home because you'll be paying it off for a lifetime.
We're moving into a world where few people can own things outright, and they will be forced to rent everything. You won't own your home, your car, you don't even own your money since you're living on credit.
All you're doing is promising more of your life force and productive capacity to a 3rd party, be it a bank or a government.
Proof of ownership
Humans are very self-centred, they like to own things my kids, my husband/wife, my home, my job, my business, my car, mine mine mine mine mine. Ownership is an integral part of society and the human condition. When you strip people of the ability and right to ownership, you take away their humanity, their pride, their willingness to contribute to society.
When you don't own anything, you are the one that is being owned; you have owners, the government owns you, the bank owns you, anyone you owe money to owns you.
What is an economic issue, became a social issue and now becomes a psychological issue that is damaging an entire generation of people who will pass on this fear, debt, indecision and hardship to the next generation.
We cannot continue like this; we need to move towards a world that is equity-based, where people have provable ownership. Where they can see and own 100% of the fruits of their labour.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."
Let's connect
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that's a very socking reality. I remember when i went to New York and rent an airbnb room from a 30 yeard old girl. She was trying to pay her college debt and at the same time her rent. To do that he rented part of the house as an airbnb, she had a job and she was also doing freelance work.. the worst part was that by doing all that she had literally no life
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Wow, that is one horror story I mean working 2 jobs and renting out your place to cover rent and debt, when will you ever own anything? How will you start a life?
I know New York is an expensive city to live in but people are really pushing it to the brink no wonder people are so angry and triggered online they all so stressed out if that's the kinda situation you're living in, I can imagine shes not the only one living like that and she should be more on the "well off" side having a job and a talent to freelance, wow, scary
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most of the newyorkers don't bother to get triggered via internet. they don't have the time or energy to do so! It's was really an awful experience regarding the work aspect when i visited. The average person is literally a working slave
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And do they seem stressed? How do they even continue on like that? I would be very depressed? Is there a lot of homeless people too as people can’t keep up with the cost and rat race especially now with the lock downs
when i visited new york during 2019 so there was no covid and such back then. I visited the "good" areas so i saw only a few of homeless and i bet, only 3-5 were actually homeless, the others were scammers for money ;) (we got plenty in my country so i can tell :P)
I guess in other areas like the west side with the ghettos and stuff the situation might be worse
In a way they got "no option" it's either they gonna live the city or stay there with that pace. They manage to stay "focus" with a bag of prescribed pills, vitamins and stuff (at least that's what i saw and what they told me). After a certain period tough when they got older i bet the psychological consequences will be bad
so while i enjoyed visited new york a lot, i would go there to work under these circumstances .
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It sounds fascinating, in South Africa we're pretty laid back regardless of what happens we don't really have that workaholic culture people prefer to sit around then work themselves into a frenzy. I can't even picture it myself, I would have to see it for myself
Sounds like a lot of people are also not telling their stories and struggling in silence so we all won't know the full story
we are kind of like you guys in Greece as well!
If you ever visit New York pay attention to them!!
sorry for the late reply as always :P
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In Nigeria here, renting is one of those things people do especially if they think they do not have money meanwhile at the end of the day they spend more money renting than they should spend to even buying their own property. It's all about choices and sometimes people do not even understand how to make the right choices because of the excessive desires and wants
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Yes I understand its the same here, its all about the nominal value with rent you don't have to pay massive deposit, deal with interest rates and all those fees that come with owning a home.
To be honest, very few people own their home, either, stop paying for a moment and see what the bank does to you and even if you have paid your home off, stop paying your property tax and see what happens to your home.
We own nothing, we're all just renting from someone.
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It sure is more expensive to be poor.
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Sadly that's the death spiral vortex many of us get sucked into and getting out is damn near impossible as time goes on
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I read an article here on LEO the other day about a Mom who was building up her LEO account. She uses her HIVE to survive with, but is building her LEO for WEALTH beyond survival.
I like this blockchain more everyday.
And also like the idea that I could live off of HIVE if I decided to move to another country. All of a sudden financial survival is so much less scary.
Wow, that is amazing, I hope to one day we can also maybe not TOTALLY live off it but at least cover some of the expenses or maybe crypto can be for treating yourself you know a nice holiday or something to spoil yourself
Even so, I think that we need more stories like these, I am happy to HODL knowing its helping others and making their lives better
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I was reading your blogtitle and thought this blogpost should be about some else. But it was good reading anyway.
In sweden there is a strong trend to "RENT" more then "OWN". But in a positiv way. Dont own your car - go and rent one 2-3 times every month when you really need it. That is better for your economi and the enviroment.
Same with a lot of things. I can today rent almost everything in Sweden. Not because I dont have money to buy it - but because I dont need to own it. A share-economy that starts with uber and airbnb and then go to more things.
Have a nice day. I stay inside two days more.
I like that concept better like only pay for what you use, and on-demand, but there are some things people would like to own, like their purchasing power and their home and small items
I mean people are buying clothing, cars, phones on contracts and credit, that's effectively renting something you could own, it doesn't seem right to me, especially something that's losing value while you paying the same monthly instalment.
I think a combination of what you guys have in Sweden would be great, it obviously wouldn't work here in South Africa, just because of how our cities and culture work here, but for developed nations it sounds like a good option
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I agree. We have the infrasrtucture for it.
This is indeed true but funny as well, as we drive ourselves into debt that we know we are not going to be able to pay it and put our lives and generations' life at risk of suffering till eternity all in the name of paying off loans. Lols...
I have read many articles well, not really Nigeria but other countries who work two to three jobs just to pay off debts owed by their parents and family members and it get me bothered, why loan to get something you know you can hold on to, save and get in the future.
The economy is unstable and diverse people are looking for a way to get properties they can save into the future, so your loan and give your house and land as collateral and end up having nothing of your own.
This is really getting out of hands because most people go into debt for things that are not valuable and can't reproduce inflow of cash to pay off their debts.
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You have a firm grasp of the issue and very well said, I agree with you completely. I can't understand it myself people are using borrowed money to bid up prices for cars and homes and it's so silly if they didn't it's not as if those cars and homes disappear, all they do is get cheaper. Less credit means less new money, meaning old money/savings increase in value due to deflation
Unfortunately, we cannot have deflation or the debts we do have will collapse in on us, it's so out of hand yet we still see people borrowing and borrowing it blows my mind.
All I can do is buy my Bitcoin and hope I don't hurt too bad by what is going to happen when we find out we can't pay for all this debt
I fear the debt. I don't buy the liabilities such as House and Car because I don't have million Excess moneys now.
And, there is no Credit card issued by the government in my country, Myanmar.
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Lol same here, I don't think I'll ever be able to afford a home at this point, will just have to wait and see if things ever get to a point where what you can earn can net you a home. Be lucky that your country doesn't flood you with too much credit, it will be better for you in the long run, others might look better than you now but they are on borrowed time
I think that we have to start redefining what ownership is and what has value. People seem to think that buying a TV has value yet crypto is a scam.
Indeed, and there are actually very few things you can "own" these days. Apart from physical cash to a point (until they declare it non-legal tender) and precious metals (until they moan about that) I guess is ownership.
Bitcoin seems to be the only ownership they can't touch
yet, if its in a private key wallet.
Those are basically the two big-ticket items people buy, the other stuff I mean all depreciates to zero a few years after buying it so what's the point of owning something of zero value.
Ownership has been eroded, we live in a rent to live world
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Good point bringing in the relativity of ownership (of things you still pay taxes for) but similar relativity can be applied to...everything.
Holding on to the material and even putting too much value in it is giving in to artificial standards.
Also,
Owning in itself is not even guaranteed to be equal to using to your own benefit.
So, the trap is...we are ruled by means of our desires. But the norm is for us to be parts of such a society. It's our job to find the best balance.
Yes indeed, there are very few things you can "own" outright that no one has their hand in your pockets. You sure can't take it with you but none of us want to live a crappy life while we are here and owning things, unfortunately, is how we improve our quality of life.
I would agree with you our desires definitely, hold us back! It's all about changing your mindset
I have long been an opponent of getting into debt. Even though it may seem economically unwise here and there, it saves me stress and allows me to maintain the minimal amount of freedom I possess.
Many in my circle of acquaintances have gone into debt at a young age for luxury items such as beautiful cars or have taken advantage of well-known leasing models. I have never had any understanding for this. I drove my first car until it flew apart and afterwards I got myself one that has 3 times as many kilometers down as my first car. But it rolls and is quite comfortable so far.
I understand that in some countries income levels are much worse than in my country. But you should always ask yourself if you really want to compare yourself with others in your environment based on consumption. I think this leads to nothing or at least to nothing good.
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I am with you, debt is fantastic if you are buying an asset that generates cash flow like a rental property or a business but horrible for anything else. Its a good financial tool but we have misused it on petty things
Debt in my mind should only be used on creating NEW goods and services and nothing else. Everything else should be financed with existing cash.
I use small amounts of debt via my credit card, I'll buy Bitcoin with it and pay back my debt with cheaper fiat that I earn, but I never spend more than I can pay back within 55 days.
It's tough in countries with poor currencies and makes it that much harder to get out because wages are flat, if wages were rising having a weak currency would be great for debt. I see many people here way overleveraged thinking they will always have income to support the debt and 2020 has proved that is not the case
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One has seen in 2017 in the USA how such debt systems can develop and to be honest I see little improvement in today's world. But there I am not deep enough in the subject to be able to deal with it comprehensively.
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Oh I don't think you want to go down that rabbit hole, it will only make you depressed when you see how fake our economy is and how bad the debt problem as become around the world
I've been down there a while before and know basic basics, but the topic is already quite extensive. And what you write is true, the topic doesn't make you laugh, but nevertheless it is much too important to be ignored...
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It isn't always about trying to "keep up."
As the oldest Millennial, all through Elementary, Middle, and High School, I was promised that if I got good grades, went to college, got good grades there, and graduated, I would have a "good" job.
I was "sensible" and bought a car with a "good deal." I was to take over the payments from my sister's car. It was a good idea because I was being more frugal than my friends, which meant I was doing well.
By the time I realized that what I was taught about road maps, and finances, and investing in my future didn't make any sense, I was already in debt.
Now, when I tell my kids that college is cool but to study close to home, get a job to pay for classes even if it takes longer to graduate - I get death stares from family members.
They feel like because I had the opportunity to go to college and enjoy my four years, I should facilitate the same for my children.
Well, I will not facilitate debt.
Let us be more kind to our fellow millennials, sure, many of us are trying to keep up, but many others of us were just born into the whirlwind economy and didn't even know it.
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I feel you on a spiritual level with this comment, I was super fortunate to go to a subsidised techni-con so it wasn't pricy to get my degree and we could afford it cash.
My car I build up myself, it was fun, running around for spare parts, eventually sold it and got a more "reliable" car lol, but no debt thankfully.
Yes, I am spoilt having had my 4 years in college too, but the costs these days are mind-blowing. I agree rather do it slow pay for what you can and don't try to finance everything you do especially something that's NOT guaranteed like a job.
There are electrical engineers working as Baristas these days so to me it's still a bit of a gamble.
My short term goal is lean-fire and long term FAT-fire and I'm not going to get there with financing stuff!
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Paying 20+ years for a house... Bricks on land.... Is just... Scary
Theres already 30 years now and in Japan they already have 100 year mortages LOL that's where we're going the madness isn't going to stop. I can't even believe people are paying 7 years on a car now when it loses half its value within the first 5 lol makes no sense but okay to each their own
Wow! 100 years?! I find it unbelievable and sad that people take this massive burden and carry on through generations.... I could never do this to myself, I would rather sleep in a tent under the sky than burying my lively spirit under piles of debt. It is so sad....
LOL Me too, so make sure theres room in your tent for one more, the night sky can be our TV and that's alright with me
Hahah that is awesome, you're a free spirit just like me, I am always happy to find such "creatures" , they are rare
LOL likewise, we can start a tribe and hope we can find more of our kind in the future :P
Hahaha that would be quite something
Fuck buying a car first of all. Get a motorcycle and pay cash.
Fuck buying anything. I mean anything. Don't even buy a microwave.
If you have one of those Netflix Hulu subscription things I can't help you. You are too far gone to be helped.
Read books. Preferably old books. Modern entertainment will rot your brain.
Stop thinking it sucks and the odds are against you. They are not, you have been taught they are. We are living in a time of immense opportunity. If you see that you will see the opportunities.
Spend your money on good food and working out. Spend money on these two things at the expense of everything else even education.
The real education is the one you give yourself. This can be done with a second-hand kindle.
Experiences trump material things every time. When you die you will regret the things you never did not the things you never bought.
Don't get married. If you want to meet a nice girl and get married and settle down then you are too far gone I can't help you.
LOL with those requirements, there are a lot of people who are too far gone and can't be helped. I think its all about what you value if you value marriage or a car then, by all means, go for it but don't complain about the downside of your decisions then, that was your decision so take personal responsibility
I do try to rid myself of the BS, live as minimal as possible, save and try to read as much and lean as much as I can and to be prepared for anything too
Definitely agree with most key points here. Most cultures have been traditionally taught to acquire a house and lot for settling down. I don't think a house is an asset unless it's built to have people pay you while they rent it. A house now becomes a vacuum for money and a liability when you acquire debt for it.
My life plan now is just increasing my cash flow and see what investments could generate me more cash flow. Renting a place just to have a roof over my head is more feasible.
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I only learned pretty late and it was tough to break out of it that the dream e're all sold doesn't benefit me but benefits others like bankers, real estate agents and governments I just open up more of my value to be stolen from me and that's what creates the 1% of the rich. When you don't ask questions and you follow the herd you will get what they get
I almost missed replying to this. Good thing I looked back on the notifications list. You're right, I'll still try to put some money on their system because it's easier to negotiate when you can motivate them that they'll get something out of you. Small dealings like having a relationship with your bank and the people in it can help you in some exclusive opportunities but most of my money will be off their hands as much as possible.
I like the idea that they passively manage some of my funds at first but I'm not learning how to be rich when I let them do that and they earn from me. 😅