What’s New Around The Blogosphere: May 4th, 2012

I read a very interesting post on The Grid this week called the rise of premature affluence.  The story explores the reasons why the face of debt is getting younger these days, especially in cities like Toronto.  The term “premature affluence” comes from the tendency of twenty and thirty-something’s to lead a lifestyle they feel they deserve, rather than the one they can afford.

The expectation is that their income will eventually catch up to their spending and everything will be fine.  One of the more telling quotes from the article came from a twenty-something woman who said, “Why do you need to save money, when you can buy everything you want right now?”

Do you think that most people in their 20’s and 30’s are living this way?

This week on Moneyville I shared our $100 a month RESP plan, and looked at cash back credit cards – my top choice.

Here are a few more interesting personal finance articles from around the blogosphere this week:

  1. Globe and Mail’s Rob Carrick writes, ready to be bold?  Sell the house and rent
  2. Money Mamba says that buying a used car no longer makes sense
  3. Credit Cards Canada shares an infographic on Canadian debt – your tax dollars at work
  4. Mr. Money Mustache opines about folks who think the cost of living is too high these days
  5. Squawkfox says this is going to be expensive…but who cares!
  6. Invest It Wisely explains how to register a Canadian corporation
  7. Passive Income Earner looks at a railway battle: CNR vs. CP
  8. Canadian Finance Blog advises to watch out for Facebook IPO scams
  9. My University Money looked at the Quebec student strike
  10. Money Smarts Blog explains how to win a house bidding war

We were also included in the following blog carnivals this week:

Have a great weekend, everyone!

8 Responses to What’s New Around The Blogosphere: May 4th, 2012

  1. I have no doubt that people in their 20s and 30s spend the majority of what they make. I’m in my 20s and I can surely say that I don’t know any other people my age that save like my wife and I. All of them spend like they’re going to die tomorrow.

    Have a great weekend B&E!

    • @WorkSaveLive – spend like you’re going to die tomorrow is a pretty accurate depiction. I blame the popular Mazda commercial that said, “I will never sacrifice joy in the name of practicality”.

  2. I saw the headline on this article on the front page of the print copy of The Grid on my way into work – glad to get a chance to read it. Do I think people in their 20s and 30s live like this? Some do, some don’t. I have friends my age (mid-30s) who are still renting, nothing put aside, eat out a lot, and still paying off student loans. I have some friends my age who are like me – house paid for (or at least a good chunk paid off), no student loans, and saving for the future. So it varies. That being said – no idea how I’m going to get the 2.5 million I need to retire apparently..

    • @Ellen – Yeah, I’m not sure where the 2.5 million – 4 million numbers come from. That’s pretty ridiculous. I also don’t buy a lot of what Rosentreter says about 30-something’s being screwed. I think, like any generation, there are savers and there are spenders. It’s not fair to paint all 30-something’s with the same brush.

  3. Why wait until tomorrow to obtain what you can have today? If the average person in their 20s and 30s thinks that way, then they will be in serious financial trouble TOMORROW. And the correct answer to that question will become painfully clear. I hope they’re enjoying all that money they’re spending TODAY.

  4. IT is for that reason why debt is becoming a problem for many young people. They think there is no reason to save when they can purchase it on credit. We live in a need it now society and it will catch up to those who are not careful.

  5. I agree 100%, most 20s and 30s spend like there’s no tomorrow and then they eventually settle down and have kids and any extra money they might have had before, now goes towards their family finances. They can never get ahead because they never started good finance techniques when they had the chance (not saying you can’t save after you have a family, but it can be very difficult if you haven’t gotten into the habit of it).

    I’ve always been a penny pincher as a kid, and it definitely stuck with me. I hope they enjoy their 20s because more and more people aren’t able to retire.

  6. Thanks for the inclusion. Selling the house and renting might be bold, indeed, but I agree with you, our generation does feel entitled. After all, we worked to get through school and though tuition is still cheap, it’s more expensive than it used to be. At the same time, everything else, like housing, is so expensive. I think our generation feels like we deserve the good of what our parent’s generation had, though we forget about all the things we have that they didn’t.

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