The Millennial Generation, those between the ages of 18-35 years old, looks at life through a different lens than the generations that have gone before them. Home ownership and a structured career path are going to the wayside in favor of a lifestyle that puts a higher value on experiences over material possessions. This means that for many Millennials, they would simply prefer to have the freedom to travel over being tied down to a traditional job and purchasing a starter home in the suburbs.
The United Nations estimated that Millennials make up one fifth of the world’s travelers, and that they will generate over $180 billion in tourism-related revenue. That is a lot of capital being poured into travel, and that is partially because traveling is expensive. In a recent Forbes article, it was estimated that the average vacation was a little over $1,100 per person, which could add up quickly for a family with children.
Although Millennials are savvy shoppers able to find deals on travel, there are many expenses associated with vacations. Lodging, food, sight seeing, and transportation can quickly add up to a very costly trip. Having the freedom to travel also comes with the necessity of financial backing to take that journey.
The Reality of Travel and Planning for the Future
A high-paying job can offer the financial means to travel, but very few jobs allow for the time off that Millennials are seeking. Most traditional companies offer a vacation policy that averages two weeks at best, and even that might be tough to take at one time. One of the easiest ways to achieve your travel lifestyle and have the time to take trips can come through investing in assets that will generate passive income.
While Millennials are focused on a goal of traveling in the near future, they need also considering saving and investing for their retirement. A recent survey conducted by Money Under 30 found that the majority of Millennials they spoke with were saving less than 10% of their income. Furthermore, BankRate.com conducted a similar survey and found that only 26% of people under 30 have invested in stocks. Unfortunately, most Millennials are focused on the present and haven’t created a long-term plan.
Millennials often forget that they have one of the greatest assets that most investors wish they had more of – time. Time is a key factor to the profitability of many assets and it is imperative that Millennials invest in assets now that will grow to fund their retirements in the future.
Can Millennials find a way to fund a life filled with travel and develop a plan for retirement and their future?
Generating Income and Planning for the Future
The solution to generating passive income today, and creating an asset that will grow in the future is found through real estate, single family rentals in particular. Single family rentals purchased in the right markets can generate monthly cash flow, via rent, which can be used to fund your travel plans. As time goes on, these properties can continue to grow in value through appreciation and be a sizable asset by the time you are ready for retirement.
Investing in real estate used to be difficult with hurdles that ranged from knowing which markets to invest in to how to manage tenants. HomeUnion has created an end-to-end real estate investment solution for investors, like you, looking to challenge the status quo and travel the world.
Having the means to travel and create wealth for the future is fully possible through HomeUnion’s unique approach to real estate investing. By taking care of all the hard work of finding income properties in proven cash flow neighborhoods and then managing and finding quality tenants, world travelers can rest easy knowing their investments are taken care of and providing a stream of passive income.
Making travel dreams a reality can also come with a plan to fund your retirement. To learn about how you can implement a strategy like this, sign up for a free consultation below.