Get invested

Baby boomers managed to invest in low housing prices, with real estate one of the best ways to create wealth. That’s no longer the case, with housing becoming unaffordable across the United States. But there are other ways that millennials can invest to boost their income.

Now of course I’m not suggesting you start trying to time the stock market, or try to pick the next “big thing.” Instead, looking into exchange-traded funds (ETF) that provides diverse exposure to global markets are a conservative place to invest. If they offer a dividend yield, even better. You can use that to reinvest in your portfolio as well.

And remember, it’s really not about timing the market, but time in the market. That’s where millennials certainly have an advantage over boomers.

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Meet with your advisor

Just because you don’t have wealth doesn’t mean you can’t seek out financial help. It doesn’t cost anything to meet with your banker, and that’s exactly what they’re there for. A financial adviser can help you make the most of your income. They can see where you can afford to invest, and where you can afford to cut.

An adviser will also likely help guide you through [making a budget](. And once you have a budget that works for your household, stick to it. By doing so, this is one of the fastest ways to create wealth.

Pay off debt

If you want to be wealthy, stop paying lenders so much to borrow money. Interest rates are rising, inflation is rising, and your credit card and student loans aren’t going anywhere. So create a strategy to pay down your debt as soon as possible.

Again, a financial adviser can certainly help you through this. However, there’s a simple strategy you can start right now. Make a list of all your debts: credit cards, student loans, mortgage, all of it. Then sort that list from highest interest rate to lowest.

Start putting aside the money dedicated from your budget towards your debts, paying off the highest interest rate first. Once that’s paid off, move on to the next.

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The bottom line

By investing in long-term growth, meeting with your financial adviser and paying down your debts, millennials can certainly start catching up to their parents.

And honestly, now is the time. We’re in a new world of higher interest rates and inflation, and potentially facing another recession. It’s an ideal time to look over your budget to see what can stay, and what can go.

What are your spending habits?

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About the Author

Amy Legate-Wolfe

Amy Legate-Wolfe

Freelance contributor

Amy Legate-Wolfe is an investment junkie, who aims to help others get hooked by providing well-researched advice. After receiving a masters in journalism from Western University, Amy worked for Huff Post and CTVNews.ca, while freelancing for organizations such as the CBC, Motley Fool Canada and Financial Post. Amy Legate-Wolfe is an experienced personal finance writer and freelance contributor working with MoneyWise.com.

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