5 Ways for Gen Zers To Get Rich in 2024
Written by
Heather Taylor
Edited by
Molly Sullivan
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There’s good news for Gen Zers who have “getting rich” as one of their resolutions in 2024. There are strategic moves this generation can make now that will allow them to end 2024 with more money than they started with.
GOBankingRates spoke to Mark Henry, founder and CEO of Alloy Wealth Management, about five short- and long-term money moves Gen Z can make to successfully start building their wealth.
Open a High-Yield Savings Account
Gen Zers with money in a traditional savings account can start building their wealth by putting this money into a high-yield savings account. At the current rate environment, Henry said these accounts offer 4% to 5% APY, or higher, while a traditional savings account has a less than 1% APY.
“If you put $5,000 in a high-yield account with 4.5% APY in January, you’ll have more than $200 in interest by the end of the year versus just a few dollars in a traditional account,” Henry said.
Prioritize an Emergency Fund
Even if you have several outstanding financial obligations, like student loan payments or car payments each month, it’s of critical importance for Gen Zers to prioritize creating and maintaining an emergency fund. Ideally, this fund should contain at least three to six months’ worth of living expenses to cover unexpected costs or act as financial support if you lose your job.
Gen Zers faced with the choice of whether to pay off debt or build an emergency fund are recommended to make an emergency fund their No. 1 priority. Henry said those who get rid of their debt first without an emergency fund will end up right back in debt if they’re hit with an unexpected expense.
Practice Loud Budgeting
Described by BuzzFeed as the first big money trend of 2024, loud budgeting is a concept created by TikToker Lukas Battle. Someone practicing loud budgeting holds financial boundaries in a shame-free way. They know how much they have to spend and are vocal about spending that money on the things they value.
Henry recommends Gen Zers utilize loud budgeting to avoid blowing their first paycheck or any regular paychecks they receive this year. Set a financial goal, instead of buying status symbols, and surround yourself with people who support your financial goals and act as accountability partners.
In addition to loud budgeting, it’s also a good idea for Gen Zers to start and stick to a monthly budget. Henry said you can start by tracking your spending for a few months to have a better idea of where your money is going. Once you track your spending habits, you can make an effective budget and determine if there are any areas you can cut back on.
Max Out 401(k) Contributions
One of the easiest ways Gen Zers can save for the future is by maxing out 401(k) plan contributions through their employers. If you work for a company that offers 401(k) matching, Henry recommends contributing at least enough to meet match requirements.
What if you’re interested in investing outside of a 401(k) this year? Keep in mind that it will take many years to build true wealth. Gen Zers starting their investing journeys are advised by Henry to get educated first and make a long-term plan.
Take Advantage of Student Loan 401(k) Matching
Gen Zers with student loans may worry it’s impossible to save for the future, let alone get rich this year, thanks to their debt. However, Henry said that the Secure Act 2.0 allows employers as of 2024 to match student loan payments with a 401(k) contribution.
Gen Zers who work for an employer offering 401(k) matching assistance may have this benefit already available to them. If they don’t, Henry recommends speaking to your HR department or anyone overseeing employee benefits to see if it can be implemented as a benefit.
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