Millennials, born between 1981 and 1996, are often talked about as if they're struggling with money.
But new trends show that many are building wealth faster than previous generations did at the same age.
Here's how they're doing it, and what we can learn from their success.
Tech Careers And Remote Work Options:
The rise of technology jobs has created high-paying careers that didn't exist for previous generations.
Many millennials have gotten degrees in fields like computer science, data analysis, and digital marketing. These jobs often pay well from the start and offer room to grow.
Remote work has also been a game-changer. By working from home, millennials can live in less expensive areas while earning big-city salaries. This helps them save more of what they make each month.
Different Views On Home Ownership:
Unlike their parents, many millennials delayed buying homes. Instead of rushing to buy property in their 20s, they spent years renting while building up savings and investments.
When they do buy homes, millennials are often making smart choices. Many purchase smaller homes or look in up and coming areas where prices are lower but likely to rise.
They're also more likely to house-hack by getting roommates or renting out parts of their homes to help cover the mortgage.
Investing Early And Often:
Millennials grew up with easy access to investing information online. Apps like Robinhood and Acorns have made it simple to start investing with small amounts of money.
Many millennials began investing in their 20s, giving their money more time to grow.
They've also lived through market crashes in 2008 and 2020, teaching them to stay calm and keep investing even when markets go down.
Side Hustles And Multiple Income Streams:
Unlike previous generations who often relied on one job, millennials are creating multiple ways to make money. A recent survey found that over 40% of millennials have a "side hustle" besides their main job.
These side projects range from freelance work to selling items online to driving for rideshare companies. The extra income goes straight to savings or investments, speeding up wealth building.
Less Stuff, More Experiences And Investments:
Millennials tend to spend differently than their parents did. Many prefer to spend on experiences like travel rather than filling their homes with stuff.
This can mean less money wasted on things that lose value over time.
They're also more likely to make purchases that align with their values, like buying quality items that last longer or investing in companies they believe in.
The Financial Education Advantage:
The internet has given millennials access to financial advice that previous generations didn't have.
YouTube videos, podcasts, and social media accounts focused on money management have taught many millennials about investing, saving, and building wealth.
What Comes Next For Millennial Money:
As millennials move into their 40s, many are set to receive inheritances from their parents.
This transfer of wealth, combined with their own saving and investing habits, could make them the wealthiest generation yet.
Their money habits might just change how we all think about building wealth in the future.
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