For most of us it is not about how well we are doing but how well we are doing compared to everyone else.
Below are a few statistics, which you can use to compare your financial position to others your age.
Gen Y – born 1980 and onward
43% have a mortgage, 9% own their home outright and 38% are renting
65% work full time, 16% part time, 5% self employed, 6% home maker and 2% on benefits
Gen X – born 1960 to 1980
50% have a mortgage, 31% own their home outright and 18% are renting
66% work full time, 12% part time, 11% self employed, 7% home maker and 4% on benefits
Baby Boomers – born 1946 to 1960
27% have a mortgage, 60% own their home outright and 11% are renting
40% work full time, 27% part time, 15% self employed, 2% homemaker, 12% retired and 5% on benefits
Silent Generation – aged 66 and up
9% have a mortgage, 77% own their home outright and 14% are renting
5% work full time, 12% part time, 8% self employed, 6% homemaker, 70% retired
One of the big financial hurdles you have it to own your own home. It does not sound like much but once you have paid off the home then the spare funds can be put towards achieving financial freedom.
This is when you earn enough passive income to cover your current wage. Once you achieve this you can then seriously start to look at retirement.
You can see in the above that the numbers of people who own their own home increases the older you get. This is simply because most mortgages are over a 25 year period. The next generations of rich people are the 9% of Gen Y who own their own home and the 31% of Gen X who own their own home.
You do not want to end up in the 5% of the silent generation who are still working full time or the 14% still renting.
You need to plan for financial freedom… so I take my hat off to the 9% of Gen Y who own their own home outright… they are on the right path.