BRUTAL Financial Truths for Young People

[@davidfolts5893]

Thanks, Principles Personal Finance, for another outstanding video. Keep that creativity coming!

[@PrinciplesPersonalFinance]

Thanks David, very grateful for you watching and for your kind words!

[@davidfolts5893]

@@PrinciplesPersonalFinance My pleasure.🎯

[@joshlang6442]

Thankyou for this video brother, I think I big benefit we have these days is the internet and the ability to share and learn through videos like this. I also think it is unhelpful to generalise boomers (though I am guilty of doing it) because though I respect the negative connotations with a select minority of them, many of them are quite modest and just the product of a different time. I belive that much of our current future anxietys will turn out to be easier challenges to overcome than what we think but I also belive that the future will hold challenges we wont even see till its too late. I think ultimately we must not make an idol out of money as though it has important utility it is not our ultimate saving grace. If we have good relationships as you say, a good spiritual life with god and good health, money will not be such a concern, in this we will be able to delay gratification in fiscal areas and become better savers and investors.

[@DavidB.Fischer]

Wealth gives you the freedom to spend your time doing the things you enjoy.

[@DixieDaydreamer]

I used to be like that, "They're just lazy and feckless." then I really started listening to what my daughter was telling me about her and her friends are going through. Baby-boomers aren't bringing that generation up, they don't see the sadness and depression in a 20 something's eyes when they've worked hard for years to get good qualifications and then spend 9-12 months fighting like crazy to even get interviews just get just a starter job position. I know 'cos I have a 22 year old daughter, many of we Gen-X have children now in their 20s, they're still at home with us as they have no choice 'cos of the mess society is in. I've started a pension for my daughter, it's only a £100 month but if I don't start something for her now she'll have never have a penny to her name. She has a small ISA she tries to put £10 month into from her own pocket. The recent proposal to have IHT on pensions is the final kick in the teeth for a generation of young people who already have the highest rate of mental health issues, none of this is going to end well.

[@PrinciplesPersonalFinance]

Thanks for watching and taking the time to comment. Appreciate your thoughtful consideration of the issues. I wish all my comments were so empathetic! You can never summarise generations into one as so many people are impacted at different levels, some baby boomers are struggling a great deal, and others have done very well. Similar to Millennials or Gen Z... each generation has its own challenges. But I think some empathy on how much people are struggling is very important. Great work on saving for your Daughter. It's something I'm looking to do for my son (due soon.) 🙂 I'm quite tempted to try wrapping up a pension contribution for their birthday, but I'm unsure how they'd react. 🤣

[@vt356b]

Another clear exposition. I especially liked your discussion on priorities and I think many people who work hard and earn well also lead lives impoverished through lack of leisure and failed relationships.

[@PrinciplesPersonalFinance]

Thank you, glad you enjoyed it and appreciate you watching!

[@andrewgibson4423]

Thanks for using UK levers rather than US levers! 😂

[@chrisbarlow5968]

I dont understand why you picked 60 when the retirement age is 67. I would like to see figures when some one is paying in to the pension until 67 and not taking out until 67. Even today most boomers dont retirement until 65. Retiring at 60 is still fortunate.

[@Kalarandir]

To be frank, Millennials have something that my generation no longer has, time. I wish I knew at 30 that I did when I was 50. Additionally, the mythical defined benefit pension does not exist for the majority of boomers, please stop assuming boomers all worked in jobs that paid one. My parents worked all their lives, retired poor, stayed poor, and died poor, all they had was the state pension. Would the information that is available to people today have helped them? Unlikely, they never had anything to invest. Boomers also make up the largest proportion of homeless. I am not disagreeing with the advice, but please stop with the boomer hate.

[@PrinciplesPersonalFinance]

I agree with your comments here and no hate whatsoever towards boomers. With videos or content, you have to put forward a view to make a point. My more nuanced view is that every generation has their own opportunities. I personally think if you were to choose any time to be alive in history, you'd choose now without question. I also fully accept that while making sweeping generalisations, it misses key elements on an individual level. Thanks for watching.

[@kw8757]

One of the truest statements here. Too easy to make sweeping statements that boomers "had it all" when I can assure you they didn't, and still don't.

[@JohnFord-c5l]

I hate these young youtubers giving silly misinformation..If I want proper advice, watch someone the same age... has the necessary experience

[@JohnFord-c5l]

May have the qualifications, etc, but Live it first!. I listen to people who are retired or nearing retirement...

[@TS-bn7zt]

Here Hear, I agree whole heartedly with your comment 👏

[@chrisballUKtoNZ]

you owe Damo a beer for my subscription.

[@JPEight]

In the 00’s a graduate salary was about 25k. Today it’s still 25-30k. If it had gone up with inflation then graduates should be on 50k+. And that’s if you believe the government’s fiddled metrics.

[@_Hollie_]

This also depends on the field, on of my friends is struggling to find a graduate job that pays more than 20k for the first 2 or so years. Essentially not even the current living wage, a lot of graduate jobs advertised at the moment have a salary the same as or less than if they just worked full time in some form of retail. Obviously the highlight is the potential earning power, but many people leave uni with little to no money saved and therefore cant really afford to move away from home to look for better jobs. Especially with the low salaries advertised, it can all get a bit bleak and overwhelming

[@cmclewee9518]

What you are missing is that few Boomers went to University but have worked from 16 to 60 or 66 ish depending on when borne, most of them did not have Final Salery Pensions. I worked for 47 years started as apprentice, then career change at 40 ran my own company for 10 years then worked for a large company for last 14 years as a manager. Not a single day of unemployment, you say we had it easy, I would argue with that in that it was hard work and drive that got us where we are, when bringing up our families we endured 15% interest rates on our mortgages something millennials and Gen X have no comprehension of. Your University driven, Video Game, mobile phone, coffee shop lifestyles will not necessarily bring you wealth, but maybe a little more hard work will.

[@TS-bn7zt]

👏

[@JPEight]

15% interest on a mortgage is easy when house prices are 2.5x annual salary.

[@AgileSnowWeasel]

Well, die sooner is certainly an option! On the serious side, as I'm mid 40s, I was luckier than those younger than me in getting on the housing ladder and managing to stay on. Salaries simply have not improved to match the cost of living, unless you are lucky and become a HENRY-type person (which is even beyond FIRE, although your mention of FIRE is more leanFIRE). But those older than me, say by a decade, got on it sooner and they now have million pound houses they bought for a pittance. But this just goes to demonstrate that each generations wealth-generation strategy is different, what worked in the past doesn't work now. Born in the 50s or 60s - housing. 70s or 80s - housing if lucky, or painful saving. 90s+ - you're doomed, DOOMED! Well, there's inheritance from the 50s set I guess...

[@PrinciplesPersonalFinance]

Completely agree 👏 the point on each generations wealth strategy is different is really key

[@chrismartin5870]

Well said. I'm 47 and didn't have many of the advantages associated with the BBoomers ie bought a flat in 2007, and could afford to gave sooner. It's in surbiton and only worth £100k more now than then we nothing including inflation. No easy pay rises, every promotion was through hard work and putting in a huge shift. Summary, its not been easy street for a long time.

[@ipreferfreedom162]

Have you ever read Generations by Neil Howe and William Straus? It's about this. We all have an individual life story but generations have a collective life story. For example, the Second World War was a life defining thing for the greatest generation but to me as a gen x it's an historical thing I've read in a book and seen in movies, and that is the case for all gen x people.

[@PrinciplesPersonalFinance]

Interesting, I've heard of it but I can't say I've read it yet. It does sound intriguing though.

[@evilzzzability]

Every generation has its own challenges. I don't think Millennials have it tougher than previous generations when you consider: - First generation to widely go on to have university educations - Falling birthrates mean Millenials will have far fewer children and associated costs than previous generations - The mass availability of cheap and effective trackers. You think Boomers could invest in global indexes for 0.2% when they were in the twenties? - The huge inheritances that many of them will be in line for - The wealth of knowledge that has been amassed, especially over the last 20 years from the FIRE movement wrt savings rates and pot building (eg, see this this very channel and others like it!). There's a pretty well defined manual for today's workforce on how to navigate towards financial security if they choose to pay attention to it

[@AgileSnowWeasel]

However - first generation to need university educations to even get a basic job. However information on how to invest is now widespread, the answers are out there, and they weren't for the older generations. And inheritance doesn't help with social mobility - if your parents struggled, there won't be much for you regardless. So even if you try hard, at some point your peers will sail past you because of the intergenerational wealth transfers.

[@PrinciplesPersonalFinance]

This is a great comment. I entirely agree with this. I think every generation has it's own challenges but to the same extent, every generation has it's own unique opportunities. Millennials may have it hard in some ways, but they also have had access to knowledge, opportunity and education in a way previous generations could only dream of.

[@Chipchap-xu6pk]

Birth rates are falling because they can't afford to have kids. University education is now a requirement for basic jobs, and course fees are no longer free and grants are no longer available. I'm gen X, but I can easily see how much harder the younger generations have it.

[@Spencer_White]

- Degree is no security of wealth, if anything it's become entry level. - Falling birthrates, come and pay my nursery bill please! £700pcm after relief and that is only 3days a week as 5days isn't viable for my wife to work. - Investments, need wealth/left over wages to do that. With housing costs no one has that. - Inheritance, boomers are burning it up on brand new cars and cruises not helping their kids at all. Plus, unless trust funds are used (boomers won't bother with them) the state WILL take it all for care costs for end of life care. - Yes, 100% we've never had so much information readily available, it is superb. I would say majority of Millennials & Gen Z are paying zero attention. Not many of my friends (millennials) have a blind bit of interest, they just work hard, work based pension and obsess over football.

[@JohnBeeblebrox]

Those PLSA living "standards" took a huge jump up this year (way, way more than actual inflation). I don't believe they are in the right ball park any more. I take last years numbers and apply a personal rate of inflation (see the ONS calculator for a good example). Much more realistic target IMHO...

[@roblowry9457]

Another really good video. I do wish there was more kickback against the PLSA Living standards as I speak to many people who say they are too high - but there doesn't seem to be anyone else putting out similar information. Sadly even Which? are now just quoting the PLSA

[@PrinciplesPersonalFinance]

I agree and I'm considering doing a video on expenditure in retirement to give more insight as I acknowledge that while the living standards guides are good as a starting point, there's a lot missed there, and it's created a bit of an unrealistic anchor.

[@jonathanhowson6420]

Plan to live until 100 but actually it’s 80 lol. Half of all men don’t like until 80! Thanks beer, takeaways and lack of exercise

[@ianwall9152]

Would recommend pensions , for my 20 year old children beyond the employer match maximum ? I am worried about them being able to access funds at young enough age and hence I am leaning towards ISAs

[@JPEight]

Tax benefits of a pension are massive, much better than ISA, but obviously you can’t access before 55 (unless you have health problems and need to medically retire). You get a bump of 25%+ from day one on a pension, and then that bonus gets interest only it. Make sure it’s not in the default fund though as there are better returns if you pick the right fund. S&S ISA are a good plan to have as well though, especially while saving for a house. Also serves as a backup for if the government messes with pension taxes.

[@JamesKerr-z4o]

Great video, it’s just an observation you omitted gen X.

[@PrinciplesPersonalFinance]

Don't get me started on Gen X!!! Lol, jk 😉

[@Donkadocus]

Boomers didn't go to university

[@DavidB.Fischer]

When millennials couldn’t pay for basic extending paying than that makes no sense.

[@johnristheanswer]

So, an average retired person has to have MORE income in retirement than the average worker ? They retire on a Friday and on Monday they need more. I think not. These numbers are silly.

[@davideyres955]

If you take into account that they cannot go get another job then they have no options so having a bigger income gives more backup plan if something drops on your lap like a sudden problem with your house, car etc.

[@JPEight]

Pensioners have health problems, health problems are expensive. Domestic help is expensive. End of life care is expensive. Yes, pensioners need more.

[@ThomasBoyd-lo9si]

Austria Vienna state pension high £330 pe week compare to United Kingdom Britain. Awesome thanks. Well said. Would have live on pension credit yes. Nurse pension you better off without Thomas took superannuation £20000.

[@AgileSnowWeasel]

The UK has for a far longer time had a big focus on personal private pensions on top of the state pension. But these were often only available for certain public sector roles and specific private business roles (i.e., the city). The majority of people doing day-to-day private jobs had nothing. Auto-enrolment may hopefully change that, but I think the rules need changing so that it is mandatory.

[@ThomasBoyd-lo9si]

Awesome thanks. Labour government England London Britain United Kingdom. Support STV voting system for UK general election it full PR voting system. Liberal Democrats win 72 Seats MP's.

[@JohnBeeblebrox]

Under STV Reform would get 80-90 seats

[@Nobumblegumforyou]

Great one, thanks. I believe best thing is to invest in skills to boost income. Then when finite time can't be maximised for time=money. Invest in assets. Owning my business has given me hope, unlike a job which seems to lack security and poorly paid in the UK vs American neighbours.

[@PrinciplesPersonalFinance]

Thank you, appreciate you watching! Yes, I agree. I think certainly in the early years the focus should probably be focusing on income.