There’s been a lot that’s changed from one generation to another. The world we live in today is an entirely different one than what was here 50 years ago.
According to the PEW Research Center information, although millennials are more educated on average than the generation before them, they make less than the average baby boomer did in 1982. Millenials with some college education average $36,000 a year, compared with baby boomers in 1982, earning $38,900 on average.
Keep reading this guide to learn the relationship between millennials and money and discover how to get ahead with these financial tips.
How Are Americans Building Generational Wealth in the Northeast (SWNS)
1. Paying Down Debt
As a millennial, you most likely already have a pile of debt – student debt, credit card debt, etc. A recently released Federal Reserve report claims millennials have now racked up over $1 trillion in debt alone, increasing 22% in the past five years.
The best thing you can do to save money is to pay down your debt. When you have high amounts of debt, you can be paying absurd amounts of interest, making it difficult to start saving. You can start by paying the highest interest debt first to avoid paying more than you have to in interest.
2. Buying a House
Buying a house is going to be one of the most significant purchases you make in your lifetime. It’s essential to make sure you are happy with the home you buy, and it doesn’t put you into debt forever.
According to the 2021 Home Buyers and Sellers Generational Trends Report, millennials made up 23% of home buyers this past year. When it comes to making your first real estate investment and buying a house, it’s critical to take the time to research before making an offer.
3. Building a Savings
It’s hard for millennials to build savings right now for a major purchase such as a house. That’s why it makes it important to save money anywhere you can.
For example, if possible, talk with a tax advisor to see how you can get the most out of your tax return. Learn more about choosing a tax advisor at WealthAbility. Building a savings account takes a consistent effort. Every time you go to purchase something, ask yourself, “do I really need this?”
4. Growing Wealth
Once you’ve built decent savings, you can begin to invest it and grow your wealth to earn more returns. Depending on how you would like to manage your money, you can either a) speak with a financial advisor to help you with portfolio management or b) do the research to determine the right investments for your account.
To start, begin investing little by little into the stocks you’ve selected. Make sure to include some dividend stocks so you can watch the earnings compound. As time goes on, you can keep buying stocks and investing in these companies.
Millennials and Money: Focusing on Your Future
When it comes to millennials and money, one thing is certain – they live in a different world than previous generations. It’s hard to compare how well the millennial generation is doing compared to other generations because the world has changed significantly in the past 50 years. The best thing millennials can do is focus on their future and keep making and accomplishing their goals.
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