Millennials are wealthier than ever — but they don’t feel it

The value of the millennial generation It has increased in recent years. According to federal reserve dataThe generation is now loaded around 15.95 trillion dollars of wealthA big leap of $ 3.94 trillion only five years ago.

Through many measures, the millennial generation works great – but it does not seem to be I feel this way. This separation between the wealthy being on paper and Feeling freely financially It was referred to as “Fake wealth“It can be due to the following factors.

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while Data shows The millennial generation witnessed a very huge growth in net value, and many of this increase comes from two main sources: the high values ​​of the house and the gains of the stock market. This is not critical on hand. So the millennial generation may be technically richer, but this does not mean that they have more income.

“Both these origins are not really liquid, which means that the millennial generation does not have an immediate access to either of them,” he said, he said, “ Kevin LeibitzAnd the president and CEO of Grayton. With the imprisonment of this wealth, the millennial generation can not be spent unless they sell, and even then they had to buy in the same enlarged market.

A deep -rooted sense of insecurity

Each generation is formed by identifying events in their formative years that affect how to see the world – and how they see money. Bobby MaskaThe CEO and founder of Green Ridge Wealth Planning believes that September 11, which occurred during the years of the Millennium formative generation, is one of the first major disorders that instilled the feeling of uncertainty.

Then the great recession came in the late first decade of the twentieth century. “Unlike previous generations that may have faced more financial difficulties, the millennial generation was deeply affected because they had a seat in the front row of economic turmoil,” said MASCIA. During this time, the millennial generation saw that their parents are struggling with job losses and home mortgage. The ongoing news coverage has strengthened the fragility of financial security and the banking system.

Maska added: “Soon forward to the post -referee. The millennial generation did not bear just one economic disruption, but multiple.” “They faced stagnation, increasing housing prices, overwhelming students’ debts and instability in jobs. These compact factors made financial security feel like a constantly moving goal.”

As a result, the millennial generation developed a deep feeling of insecurity around the money and the world as a whole. Even once financial success is achieved, they seem to have essential fear that stability may disappear at any moment. The world has repeatedly pulled the carpet from under it, so many of them struggle with financial insecurity, regardless of the actual eagerness.

Comparing social media

According to the Credit Credit SurveyAbout 33 % of Americans suffer from a distorted point of view of their financial position. Young generations, including the millennial generation, struggle with it more. Although there are higher savings than average, 41 % of the millennial generation feel financially disagreement.

The perpetrator this can be social comparison. Many of the millennial generation grew up using social media and are constantly bombing through the rollers of their most prominent peers. This endless comparison is born with financial anxiety and a feeling of insufficient, even among those who do a good financial job.

High cost of living

The basket of their assets, in addition to the high cost of living – is partly due to inflation and high interest rates – another reason that the millennial generation feels less richer than what appears on paper. According to Survey of Bank of America In May 2024, 76 % of workers say the cost of living exceeds growth in their wages, compared to 67 % in June 2023.

“Therefore, even if retirement accounts increase from the millennial generation, the daily cost of living increased as well, which may still make them feel that they are passing.” Jordan ManualmanGoldline Financial Services.

How to achieve real financial security?

If you are still constantly tense about your money and suffer from it Indisputation Despite the increase in the net value, try these steps to develop a real feeling of financial security.

Building liquid savings. If most of your pure wealth is linked to retirement savings and real estate, think about putting part of your wealth in more liquid assets such as a high -return savings calculation. This way, you can easily access them to meet short -term needs or emergency situations.

Avoid lifestyle. If your spending increases at the same speed as your income, you may never feel safely safe, regardless of the amount of money you earn. If you do not do so already, create a budget to keep your expenses under control and keep a gap between what you earn and what you spend.

Work on your money mentality. Jay ZigontThe founder and CEO of Childfree Wealth, believes that a financial sense of security comes from transferring the mentality of your money more than achieving an artificial goal such as becoming a millionaire. “Many of the millennial generation saw that their parents are struggling with their money. These difficult times can create a shock around money,” he said. “Until this shock is addressed, they may never feel true financial freedom.”

Zigmont suggests working with a financial professional for at least six months to help convert this specific mentality. “Although your money may not change significantly in those six months, your comfort will be, and this is what matters,” he said.