Millennials won’t have the same advantages as Baby Boomers when they get rich – here are 3 simple ways that young Americans can quickly catch up
The baby boomer generation has lived through some of the most important moments in American history. And they went out the other side, all richer for it.
The post-war generation has seen four decades of incredible growth in their formative years. The skyrocketing value in real estate and stocks allows them to build their wealth and even enjoy it. Furthermore, this group born between 1940 and 1960 can afford to put some cash aside. Once it is invested, increased assets will create more wealth.
With all that they’ve seen, they have plenty of advice to give to their children, who are hoping to earn their own wealth. But for some reason, those millennials wouldn’t listen.
Part of it is certain that they have not enjoyed the same luck as their loved ones. Millennials were born during a recession, entered the job market during a recession, and are now trying to start a family and buy a home during another potential recession. Oh, and the global pandemic too.
That means while their parents work the hay while the sun is shining, millennials may need to figure out how to tend to do their own farming without the many benefits that come with it. their parents have. Luckily, they have options to get started right now.
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Investment
Start-ups have managed to invest in low housing prices, with real estate being one of the The best ways to create wealth. That is no longer the case, with housing becomes unable to pay across the United States. But there are other ways millennials can invest to increase their income.
Of course now I don’t recommend starting to time the stock market, or trying to pick the next “big thing”. Instead, look at exchange-traded funds (ETFs) offering diversified exposure to global markets is a prudent investment. If they offer a dividend yield, even better. You can also use that money to reinvest in your portfolio.
And remember, it’s really not about timing the market, it’s timing In market. That’s where millennials definitely have an edge over boomers.
Meet your advisor
Just because you don’t have wealth doesn’t mean you can’t seek financial help. It doesn’t cost anything to see your banker and that’s exactly what they are there for. A financial advisor can help you get the most out of your income. They can see where you can afford to invest and where you can afford to cut back.
A counselor can also help guide you [making a budget](And once you have a budget that works for your household, stick to it. In doing so, it’s one of the fastest ways to create wealth.
Pay
If you want to become rich, stop paying lenders too much to borrow money. Interest rates are rising, inflation is rising, and your credit cards and student loans are going nowhere. So let’s create a strategy to pay your debt as soon as possible.
Again, a financial advisor can definitely help you through this. However, there is a simple strategy that you can start right now. Make a list of all your debts: credit cards, student loan, mortgage, all of it. Then sort that list from highest to lowest interest.
Start setting aside money from your budget for your debts, paying off the highest interest rate first. Once that has paid off, move on to the next section.
Key point
By investing in long-term growth, meeting a financial advisor and paying off debts, the younger generation can certainly catch up with their parents.
And honestly, now is the time. We are in a new world of higher interest rates and inflation, and is likely to face another recession. This is the ideal time to review your budget to see what can stay and what can go.
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This article is for information only and should not be construed as advice. It is provided without warranty of any kind.
