Nov 7, 2022
The baby boomer generation has lived through some of the most significant moments in American history. And they’ve come out the other side all the richer for it.
The post-war generation saw four decades of staggering growth during their formative years. Sky-rocketing values in real estate and stocks allowed them to build their wealth and even enjoy it. What’s more, this group born between 1940 and 1960 were able to afford to put some cash aside. Once it was invested, rising assets created more wealth.
Advertisement
With all they’ve seen, they’ve got plenty of advice to shell out to their children, who are hoping to earn their own riches. But for some reason, those millennial kids just won’t listen.
Part of it is surely they haven’t enjoyed the same good luck their folks had. Millennials were born during a recession, entered the job market during a recession, and now are trying to start a family and buy a home during yet another potential recession. Oh, and throw in a global pandemic too.
Which means while their baby boomer parents made hay while the sun shone, millennials may need to figure out how to tend to their fields for themselves without many of the benefits their parents had. Fortunately, they have options for getting started right now.
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.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
- Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
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.
Read More: Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
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.
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- This 20-year-old lotto winner refused $1M in cash and chose $1,000/week for life. Now she’s getting slammed for it. Which option would you pick?
- Warren Buffett used these 8 repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Amy Legate-Wolfe is an experienced personal finance writer and journalist. She has a Bachelor of Arts in History from the University of Toronto, a Freelance Writing Certificate in Journalism from the University of Toronto Schools, and a Master of Arts in Journalism from Western University. Amy has worked for Huffington Post, CTVNews.ca, CBC, Motley Fool Canada, and Financial Post. She is skilled at analyzing trends and creating content for digital and print platforms. In her free time, Amy enjoys reading and watching British dramas on BritBox. She is a mother and dog-mom to a Wheaten Terrier.
