So, you want to start building generational wealth. Starting early is key, so if you’re a Gen Zer already thinking about this, you’re on the right track. But what can you do to build this wealth?
For the longest time, owning a home was the best way to achieve financial success. But with the sky-high prices of houses and the steep interest rates, not only is this impossible for many, but it’s not the best way to build generational wealth. So, what should you be doing instead? Here are five ways that Gen Zers can start building generational wealth.
- Increase the number of revenue streams. Yes, this means bringing in more money than just your 9-5 full-time gigs. This can be from freelance work, a side hustle, creating content, and so on.
- Eliminate debt and focus on saving money. This should probably be your priority if you want to start building wealth. Try and pay off your debt, and then have at least 6-9 months' worth of liquid cash in a high-yield savings account.
- Prioritize financial literacy. Learn how interest rates work, how to responsibly use credit cards, how the stock market works, and smart budgeting.
- Always maximize retirement account contributions. Thanks to compounding interest, the earlier you start investing in retirement accounts, the longer your money has to grow. Roth IRAs and 401(K)s with an employer match are great places to start.
- Buy stocks. If you look at things historically, investing in the stock market is a proven way to grow your money. It can be risky, though. To start, you may want to invest in some low-cost EFTs or index funds.
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