Those born in the 60s and 70s financialy worse off than their parents.

Actually the problem is the devaluation of the currency. It buys you less now than before.

When I first started working I was on a salary package of $43k back in 2002. Contrast that with my brother who started working in 2011 on a salary package of $40k. Actually its not that uncommon for grads to be earning around $45-50k starting salary.

I can gaurantee you that $43k back then bought a hell of a lot more than $43k in 2011 or now. Imagine if entry level salaries are still in this range going on for the next 10 years.

Slam

 

I'm gen x and I'm financially much better off than my parents were at my age. My parents are retired now and I've got more assets outside of super than they have now in retirement. I haven't inherited a thing.

Yes I've worked hard but there can be no denying that we've had a dream run as far as timing goes.

We haven't seen a recession in the 20 odd years of my working life, we had a decade long property boom (probably the biggest ever seen) that started around the time that gen x were buying their first homes, we had a massive sharemarket boom followed by a massive crash but you'd still have your money back by now if you had held on.

If you are gen x and will be worse off than your parents you need to have a long hard look at what you've been doing.

It's not like the opportunities haven't been there.

Will gen y see a recession in their first decade of working life? They will probably see one by next year.
Houses were typically 3 times the average wage when a lot of gen x bought their first homes, gen y are looking at 7 times the average wage minimum.
Are we on the cusp of another decade long property boom. No massive boom has ever been followed by another massive boom. Maybe it's different this time??
Are we on the cusp of another sharemarket boom. Maybe, but I'm not betting much money on it.
We've enjoyed a massive resources boom and it's effect on lifting salaries. Gen y will have to deal with the fallout of a resources bust or at least slowdown.
Are gen y prepared to work as hard as gen x? From my experience I would say no, they want what gen x have got... NOW!

It's gen y that are going to be in trouble not gen x.


C

 

I think he was rightly pissed off for good reason. There are only so many hours you can work in a week and take care of a young family. To start out with nothing and no family help in Sydney, is horrible due to grossly overpriced real estate and cost of living.

 

This is exactly how housing became unaffordable. Massive price rises that your income cannot come close to.

 

Auspm was a street kid. He wasn't doing too bad IMO.

'Life is like a box of chocolates, you never know what you are going to get' unless you can read.

You are either born good looking or lucky..You don't have a choice. If you are very lucky you may be good looking and lucky.

Regards Errol 43

 

Had lunch with a friend today - Gen X. Spent his 20's not partying but working hard doing things that don't make money such as martial arts.

Now in his 30's he and his wife are both tertiary educated and with good jobs, they have ~3% pay rises each year but looking at the area of Sydney they want to live in (and it's at the edge of the city) suffering property rises of 10% per annum. Throw inflation in eating away at the purchasing power of their money and how can they save the deposit required for a market rising 20% every 2 years. Plus they hate the congestion and culture of Sydney and how it worse than when they grew up in many ways.

They're evaluating their options. Buying a cheap house in a regional town and stacking shelves at woolies is one option. Sad to lose a friend into regional anonymity if they bizarrely do this. However they're not the only people I know who feel the malaise of our times.

Been trying to tell him about what I'm learning about trusts and investments. Wonder if it will sink in.