5 Easy Ways Millennials Can Build Wealth in 2025
Written by
Josephine Nesbit
Edited by
Nicholas Morine
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You can’t build wealth overnight. It requires a long-term strategy, but that doesn’t mean it needs to be complicated or that you’re too late to the game if you are a millennial.
According to a survey by Ramsey Solutions, most millionaires are made, not born. A majority of millionaire survey respondents (79%) did not receive any inheritance from their parents or family. In fact, about 80% of millionaires came from families at or below middle-income level. The majority also don’t have high-level, high-salary jobs. Instead, they earn their money through long-term investing and stick to spending and saving plans.
If you’re a millennial, you still have time to build wealth before retirement — but you’ll need the right strategy and mindset. Here are five easy ways millennials can start building wealth in 2025.
1. Create a Budget
Before you start wealth building, you need to know where your money is coming from and where it’s going. A budget helps you move toward your goals, save money, keep track of your progress and puts you in control of your finances.
There are several types of budgets — zero-based budget, 50/30/20 rule, reverse budgeting, etc. — and simple budgeting apps to help you keep track of your money and your budgeting goals.
2. Save More and Spend Less
The goal is to save more money than you spend. The standard rule of thumb is to stash away 20% of your paycheck each month, but this won’t necessarily work for everyone. The goal is to make sure you’re saving at least a portion of your paycheck, even if it’s a small amount.
“Starting small and as early as possible can make all the difference in your financial security,” Shon Anderson, a certified financial planner at Anderson Financial Strategies, explained to CNBC Select.
3. Pay Off Debt
Your wealth is all about your net worth. According to the Federal Reserve Bank of Dallas, a big part of building wealth is being smart about debt and keeping your net worth in mind. Debt is a liability. When you take out debt, you’re reducing your net worth.
Prioritize paying off debt, such as credit cards, car loans and student loans. Paying down debt as quickly as possible will not only reduce the total interest you pay but also free up money in your budget that you can put toward better use.
4. Build an Emergency Fund
Put part of your savings into a separate account solely for emergency situations. According to the Consumer Financial Protection Bureau, putting money aside for these unplanned expenses allows you to recover more quickly and get back on track toward reaching your larger savings goals.
Personal finance guru Dave Ramsey suggests three to six months of expenses in a fully funded emergency fund.
5. Invest
The Ramsey Solutions survey found that 75% of millionaires said that regular, consistent investing over a long period of time is the reason for their success. Ramsey also recommended putting at least 15% of your gross pay toward retirement savings — and to start as early as possible.
If you contribute $200 per month to your retirement accounts starting at the age of 25, you’ll reach an estimated $1.2-$2.1 million by the time you retire at age 65. If you start at age 35, you’ll need to contribute $500 per month to reach an estimated $1.1 to $1.4 million by the time you retire.
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