22 September 2020
Millennials rate experiences above all else. The world may have inclined towards materialistic possessions thus far, but for this demographic, all that is trumped by the real experiences that stay forever. After all, those are the moments to be lived for.
Experiences are what makes someone who they are. Nothing can be taken into the afterlife, but experiences can be cherished forever. And the best example of splurging on experiences is how ‘Millennials’ or the ‘Gen Y’ do it. Their spending on getting experiences has seen an upward trend. Eventbrite commissioned a study revealing that 78% would prefer indulging in experiences rather than materialistic items, like going out for dinner or some concert. This is the generation of ‘experience economy’.
The rise of the experience economy has been primarily due to the advent of social media. People are looking at pictures of families and friends gorging on a sumptuous meal in an undersea restaurant or skydiving in Spain. All this has given a greater connection to amass experiences. Further, after listening to the earlier generation’s stories, Gen Y tends to recreate the same habits and enjoyment as their parents or grandparents.
It is all about creating budget-friendly experiences. Millennials are adopting various creative ways to explore.
There has been an increase in rented accommodations rather than buying them. This is due to different reasons, including tight-pockets. Experiences are expensive; hence there is a practice of cost-cutting in case of accommodation. No wonder a rise in studio-apartments around the world is taking place. Further, rather than resorting to a hotel during vacation, millennials prefer their ways. Camping under the stars, staying in an Airbnb, or taking up capsule rooms like in Japan, the accommodation market has adjusted according to the millennials’ creative and budget needs; after all, they are the ones driving this ‘experience economy’.
Rather than taking up a high-paying job, many would take up a position with better human interaction. Further, a better work-life balance and career development are on top of millennials’ minds. Paul Cross, the founder of Everfast, said, “Today, modern science has debunked the myth that consuming things made of atoms makes you happier. It does, but the happiness is short-lived. We now know that happiness through experiential consumption—going to festivals with friends, is long-lasting and highly preferential.”
Millennials cut down on expenses that are cut down to make way for better experiences. They tend to choose cheap food and transportation to compensate for spending on getting their bucket list goals fulfilled. Hitchhiking has been the newfound love of such travelers, and they prefer food from shacks or roadside spots or would instead prefer to have it made by them. After all, it is about selective splurging.
In May 2016, Buzzfeed published an article on the “urban poor”. It defined urban poor as “Objectively and relative to a vast majority of Indians; they aren’t “poor” at all. But they are indeed hungry and broke a lot. These are the metro-dwelling twenty-something who have internalized the pressures surrounding them, and spend most of their salaries on keeping up the lifestyles and appearances that they believe are essential to earning those salaries.”
The experience splurging has been the cause of major debt among the millennials. But when experience has been rated higher than anything, intelligent choices should be taken. For instance, taking personal loans is not a bad idea. So, are today’s youth broke millennials or smart borrowers?
India’s largest instant personal loan & salary advance platform, EarlySalary has a loan for all purposes. Be it last minute paying of utility bills, taking an impromptu vacation, or buying stuff at a flash sale; everything is possible at the tap of a finger in a few minutes. An instant cash loan starting from Rs. 5,000 to Rs. 2,00,000 for a tenure of up to 12 months, for example. Travel and shopping EMIs have been among the lowest, to be paid in 3-6 months. Wish to learn a new skill? EarlySalary has got you covered. Personal loans are a way to go for Millenials willing to splurge on experiences.
The experience economy is the new buzzword today, led by the millennials. Splurgetting is a new term created by their practices. But everything comes for a price. Well-thought financial wellness would mean low millennial stress and a smooth and seamless transition into fun and happiness. Fortunately, millennials aren’t afraid to talk about money.
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