Often, I reflect on middle-class families from our parents' generation, where parents could afford a sizable house, a car, essential home amenities, live with their own parents, and have more than one child while providing a good education. At that time, branded clothes and foreign vacations were considered luxuries. These parents sacrificed such luxuries, hoping that by investing in their children's education, their kids would achieve greater success and provide them with the luxuries they had given up, in addition to the basics they already enjoyed.
In contrast, today's young generation (ages 20-35), even with better financial knowledge and means, finds it challenging to own a house, raise even one child, and afford to live with their parents. What has changed? I believe it’s the shift in consumption behavior and the demand for increased convenience. This generation can afford foreign vacations, branded clothes, and dining at high-end restaurants. However, they remain middle-class, just like the previous generation. If our parents' generation had indulged in these luxuries, we wouldn't be where we are today. Expenses have shifted, but earnings haven’t increased sufficiently to elevate this generation beyond the middle class.
I truely believe that for the middle class today, the actual luxury has become the basic necessities of the middle class of the previous generation such as owning a house, raising two kids with decent education, and living with their parents. Many influencers today discuss ways to improve financial stability, such as having multiple income streams, investing wisely, embracing minimalist living, and entrepreneurship. Perhaps we should consider adopting some of these strategies as the financial landscape has changed significantly from last generation, it is possible to navigate it successfully with the right mindset and strategies. By balancing immediate desires with long-term planning, today's generation can achieve financial stability and continue to build a prosperous future.
I might be wrong in this analysis, let me know your thoughts :)
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