3 Ways Gen Zers Manage Their Money Like a Boss (and So Can You)
Written by
Kellan Jansen
Edited by
Levi Leidy
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Many young Americans dream of retiring early, or to be more honest, not working at all. Yet, only a small percentage of Gen Zers have achieved true financial independence. However, that doesn’t mean they don’t have that aspiration.
In fact, a recent study from GOBankingRates showed that, in general, Gen Z respondents ages 18 to 24 felt they could live a reasonable lifestyle on a salary of $100,000 or less. Whereas 42% felt it would take a salary of $100,001 or more, the majority said people could live comfortably on less.
It went further to show that a little less than one-third said $75,001 to $100,000 would be sufficient, while 21% decided a cushy lifestyle could be achieved on an income of $50,001 to $75,000. These statistics are interesting, coming from a generation just entering the workforce, which shows a national average salary of 66,621.80.
If that’s your goal, studying this group’s successes can help you chart your own path to early wealth. Here’s a look at some well-known examples of wealthy Gen Zers and what they did to get so rich.
MrBeast: Dedication
- Estimated net worth: $1 billion
MrBeast is one of the most famous YouTube creators on the planet, but he didn’t get there overnight. It took years of daily studying to learn how to create YouTube videos that would consistently go viral and earn him millions in the process.
MrBeast shared a story about his growth in the early days, where all he did was talk or think about how to get better at YouTube — from the moment he woke up to when he went to sleep. The hard work obviously paid off, as years later, he’s become the undisputed champion of going viral.
The lesson for the average person is that sometimes there’s no substitute for hard work. Fully dedicating yourself to something can turn you into an expert on the subject, which can be what it takes to get wealthy at a young age.
Kylie Jenner: Using a Social Following To Launch Businesses
- Estimated net worth: $670 million
Kylie Jenner leveraged her social media following to launch Kylie Cosmetics — which sold $330 million worth of makeup in 2017 alone. Jenner had a built-in advantage thanks to the family show, “Keeping Up With the Kardashians.” But not all teenagers who are on TV achieve the success she has. It’s a testament to her understanding of her audience.
This is something you might be able to do as well if you have a social following. Even micro-influencers can earn up to $500 for a single sponsored post. You can also follow Jenner’s lead by launching a company that sells something your followers want.
Jake Paul: Diversification
- Estimated net worth: $100 million
Jake Paul initially grew to prominence as a social media influencer on platforms like Vine and YouTube. Then he transitioned to TV, joining the Disney Channel series “Bizaardvark” in 2016.
Paul’s fortune didn’t come from a single activity. He’s built it by following his interests wherever they take him. Doing the same can help you create multiple sources of income. Diversifying in this way will give you more chances at achieving your breakthrough moment.
3 Financial Strategies You Can Follow
These are lofty examples to follow, and realistically, not everyone can invent cutting-edge technology, reach millions of online followers or dedicate hours to studying something every day. For everyone else, following tried-and-true financial strategies is the most realistic way to build wealth.
Start With a Budget
Begin by creating a budget. Figure out how much you have left over each month after mandatory expenses. This is the maximum amount that you can save monthly. Any discretionary purchases you make will eat into the figure and delay your wealth accumulation.
Budgeting gives you a clear idea of how long it’ll take to reach your financial goals. This makes it easier to plan or make adjustments if the timeline doesn’t match your expectations. For example, you might want to start a side hustle if you don’t have any money left over after getting paid.
Set Measurable Financial Goals
Next, set financial goals for yourself. These should be specific and measurable, such as saving $10,000 over the next 12 months. Without goals like these, it’s easy to get discouraged from ever trying to build wealth.
It can be hard to stay motivated when there’s a lot of ground between where you are today and your ultimate goals. Setting smaller goals gives you something more realistic to work toward. This can help you stay on track with saving so you have the stamina to eventually reach your major financial goals.
Invest
Finally, it’s also important to make smart investment decisions when building wealth. A high-yield savings account will pay you only around 4% or 5% annually. The S&P 500 market index’s annual returns average around 10%. This 5%-plus difference, compounded over years, can massively impact your wealth.
Just don’t assume that you’ll only make profits in the stock market. Individual years can be negative. But over time, history has shown that investing in broad-market indexes like the S&P 500 is the most consistent path to building wealth and achieving financial independence.
Caitlyn Moorhead contributed to the reporting for this article.
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