Get Wealthy Like a Millennial: 10 Tips For Saving Like the Richest Generation
According to recent research, 75% of millennials expect their wealth to increase in 2024. Despite being accused of spending money on avocado toast instead of focusing on savings, millennials have been diligent about their finances this entire time. They’ve been able to build wealth despite facing numerous major financial struggles. As millennials await their inheritance money, they still feel the impact of the economic crash 2008 as inflation continues to run rampant.
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What can you learn from millennials about saving money? We will share ten tips for saving like the richest generation.
Millennials as the Richest Generation
According to research published by the Guardian, millennials are on track to becoming the richest generation in history. Despite years of headlines about millennials’ supposed frivolous spending and poor saving habits, this generation is set to become fairly wealthy. Those born between 1981 and 1996 are expected to receive substantial windfalls over the next two decades.
Research from real estate agent Knight Frank revealed that due to property accumulated by previous generations, the belief is that the generational wealth transfer will see an exchange of $90 trillion in assets between generations in America. The result is expected to see millennials become the richest generation in history.
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Tips For Saving Like a Millennial
How can you save money like a millennial so you can build your wealth and plan for retirement?
Get Creative About Saving Money
The most important lesson that anyone can pick up from millennials about personal finance is that you have to get a little creative if you want to stretch your dollars and build up your savings.
“Millennials have become masters at finding clever ways to save without giving up the things they love,” said Michael Santiago, senior financial editor at Annuity.org. “Whether it’s uncovering travel hacks or mastering the art of couponing, they’re all about stretching their dollars further while still enjoying life to the fullest.”
By embracing this spirit of resourcefulness, millennials have been proactive about saving money. They’ve learned to share tools, look for better prices and do whatever possible to save a little bit.
Use Technology To Save Money
Millennials have grown up with technology and they’ve found ways to harness digital tools to save money and simplify their finances. They’ve understood that technology can help them save money and plan for the future instead of relying on traditional financial planners.
“We can take a lot from millennials and their use of technology to make their lives easier,” said Chrissy Grigoropoulos, a financial literacy expert and managing attorney of The Grigoropoulos Law Group PLLC. “The use of apps and automatic savings is an easy piece of advice to follow. Setting up automatic transfers from your checking to savings or investment accounts can help ensure consistent savings without the temptation to spend.”
Millennials have used budgeting apps and online financial tools to stay on top of their finances to ensure that they’re saving.
“Millennials are used to doing everything from ordering food to banking on their phones,” said Dave Fortin, chartered financial analyst (CFA) and co-founder of investing app FutureMoney. “Older generations can save a lot of money by embracing the new way of doing business, whether for rewards points with brands they love or even their retirement savings.”
Always Look For Deals
In addition to being creative about saving money, millennials are known for looking for deals. This generation has learned how to find the best bargain by embracing technology and utilizing rewards programs.
“We’ve grown up alongside the internet, so we know how to make it work for our lives,” Fortin said. “If you’re in a store and want to buy something, check if you can get it cheaper online. Check reviews too, because sometimes in life, deals really are too good to be true.”
To save money like a millennial, you’ll want to embrace this attitude of always trying to look out for a better deal because you don’t want to overpay for something if you don’t have to.
Cut Unnecessary Subscriptions
Millennials can’t afford to sign up for every subscription, so they’ve sought ways to cut out services that don’t add value. They’ve embraced cutting out services they don’t need and found ways to land better deals on certain subscriptions. If you want to build wealth, you must find ways to optimize your spending to ensure you keep more of your hard-earned money.
Get Serious About Paying Down Debt
Millennials have seen the impact of the damages that credit card debt can cause, so they’ve looked for ways to eliminate it. With the help of budgeting tools and banking apps, millennials have found ways to make paying off debt enjoyable.
“Millennials often focus on minimizing debt, particularly high-interest debt, which can significantly hamper wealth accumulation,” said Michael Hills, financial advisor at Apex Wealth.
Pursue Side Hustles To Make More Money
If there’s one thing that millennials are known for, it has to be side hustles and embracing supplementary income streams instead of relying on one job.
“Turn your coding skills into a freelance gig, create an Etsy shop showcasing your artistic side or become the ultimate dog walker in your neighborhood,” Fortin said. “These side hustles are like experience points in the game of life and those points translate to savings.”
Millennials have relied on side gigs to tackle the challenges associated with saving money during periods of soaring inflation, debt repayment and retirement planning. They have accepted that they need to take control of their finances by increasing their income independently.
“We have also seen that millennials are increasingly embracing the gig economy and side hustles to supplement their primary income,” Grigoropoulos said. “Adopting this method to diversify your income streams and explore opportunities through freelancing, consulting or starting a small business to increase your earning potential and accelerate wealth accumulation.”
If you want to build wealth like a millennial, you’ll want to focus on boosting your income through side gigs to ensure you can save more for the future.
Spend Money on Experiences
Hills said that millennials tend to value experiences over possessions, which can lead to less spending on material possessions and more savings. Millennials realize that experiences can be more valuable in the long run than random items that turn into clutter. If you want to save money like the richest generation, you’ll want to spend more on experiences and save what’s left.
Prioritize Retirement Contributions
Millennials have seen the consequences from older generations of what happens when you don’t plan for your retirement and they don’t want to be stuck working into their golden years.
“Many millennials prioritize contributing to retirement accounts such as 401(k)s and Roth IRAs, often starting early in their careers to maximize the benefit of compound interest,” Hills said.
Millennials Take Ownership
Millennials have been forced to take ownership of their finances since they’ve experienced major economic issues. This has forced the generation to be accountable for their spending.
“To mirror millennials’ saving habits, individuals should aim to increase their income and take ownership of their financial future,” Santiago said.
Millennials understand that they’re responsible for their finances, so they’ve taken the initiative to get serious about paying down debt and saving up to build wealth. They realize that they can’t rely on government assistance for retirement, nor can they expect to work for one employer until the pension kicks in.
Embrace Second-Hand Shopping
Millennials are known for their second-hand shopping and usage of online platforms to flip stuff. You can find millennials saving money by searching out a better deal on Facebook Marketplace, the platform where they also dispose of their items to make some money to boost their savings.
“Don’t buy more than you need and sell what you don’t need on Facebook Marketplace [or] at a garage sale,” Fortin said. “Look for what you need in those places too.”
Millennials may become the richest generation despite facing numerous economic challenges since they’ve been forced to become resourceful. If you want to save money like this generation, one of the ten tips from this article should help you get started.
“We’re a generation loaded with student debt, facing a crazy housing market and yet apparently our financial woes are explained by our singular love of a good avocado toast and maybe a latte on the side. We’ve navigated a tough environment and built up some good habits along the way.”
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