I’m not a millennial since that term applies to those born between 1981 and 1996 (I was born in 1979). Still, I identify somewhat with millennials, and it makes me uneasy when I read about them in the media.

Words like delusional, lazy, and entitled often come up.

In reality, 36% of you live with your parents, your unemployment rate is twice the national average, and among those employed, only 30% consider their job a career.

This sounds bad, right? But remember, everyone in their twenties goes through a phase of figuring things out. It will get better. I’m here to help you manage your money. Here’s what you need to know.

1. Your Future Self Will Want to Retire

You might not be thinking about decades ahead right now, but neither did most people your age who are now nearing retirement. Here are some enlightening statistics about them:

– Only 20% of seniors have $10,000 saved.

– A third of people near retirement age will live in poverty for the rest of their lives.

– Most families have saved $104,000 for retirement.

You have the chance to do much better. One simple way is through a “defined contribution plan.” In the U.S., this often means a company-sponsored 401(k) account.

Assuming an annual market return of 7%, a 22-year-old who starts out making $45,500 and gets a 3% annual raise can have $1 million at age 57 if they invest 10% of their income. At age 57, using the standard safe withdrawal rate of 4%, you can generate an inflation-adjusted $40,000 a year in passive income for the rest of your life. Not bad, right?

Key takeaway: Invest at least 10% of your income.

2. Don’t Buy a House

Real estate marketing has always promoted homeownership as an investment. This belief is reflected in the fact that 65% of millennials think, “Buying a home is the best long-term investment.” But let’s look closer.

From 1890 to 2012, the inflation-adjusted return on a house was 0.17%. That means if you bought a house for $5,000 in 1890, it’d be worth $6,150 in 2012—a gain of $1,150.

In the same period, the inflation-adjusted return of the stock market was 6.27%. So, if you invested the same $5,000, it’d be worth $8 million—a gain of $7,995,000.

Do you still think a house is the best long-term investment?

Yes, you need a place to live, but buying a house and thinking it’s the best investment is unrealistic. I’m not against homeownership (I own a condo), but making the biggest financial decision of your life without running the numbers is unwise. Use a calculator to help with this.

Remember, the tool might not account for all costs like time spent researching problems, fixing things, trips to the home improvement store, mowing the lawn, shoveling snow, and more.

Key takeaway: Run the numbers before buying a house.

3. Make Investing an “And”

Here’s a common scenario:

– In their 20s: “I want to invest but I’m paying back student loans now.”

– In their 30s: “I want to invest but I have a mortgage and kids now.”

– In their 40s: “I want to invest but I’m putting my kids through college now.”

– In their 50s: “I have no retirement savings.”

If you make investing an “and” instead of a “but,” you won’t end up old and broke. The magic of investing comes from time. Let’s say you’re 22 now and want $1 million by 50 (adjusted for inflation). To achieve that, you need to save and invest $966 a month.

4. Stop Getting More Degrees

Did you know our collective student loan debt is now over $1 trillion? And people keep going back for more degrees. What’s going on? You might know someone like this:

“There aren’t any jobs for [insert their degree here]. Lawyers get paid a lot, don’t they? Yeah, I think I’ll go to law school.”

They get the degree and then can’t find a job.

I understand you might not have known what career you wanted in college (I didn’t). Or you might need another degree for your desired job. But before committing, think strategically about your end game. Consider these options:

– There are free or inexpensive ways to learn anything online, like Code Academy, creativeLIVE, Khan Academy, Lynda.com, Skillshare, and Udemy.

– Some colleges offer free access to their courses. Scott Young got the equivalent of a computer science degree from MIT for $2,000.

– Volunteer, intern, or job shadow to show you’re an independent learner who takes the initiative to gain needed skills.

Google no longer requires a degree for employment because having one doesn’t prove your ability to think critically and solve problems.

Key takeaway: Don’t assume you need another degree (and more debt) to do what you want.

5. Become Wealthy, Not Rich

Here’s an Audi R8 that retails for over $100,000. On Quora, the guy who bought this car wrote about his experience, which was fascinating.

“Another piece of advice for anyone looking to get a supercar is to work your way up slowly, so you get more comfortable with the higher car payments. I went from an M3 to a 911 and now to a V10 R8 in the last 2-3 years, and the 4-figure R8 payment isn’t hard to swallow since I have been used to making similar payments on the 911.”

Do you see what happened? A BMW M3 used to be good enough, then it wasn’t. A Porsche 911 used to be good enough, then it wasn’t. Now an Audi R8 is good enough, until it isn’t.

This guy might be rich, but being rich isn’t the same as being wealthy. Most people think they’re the same, but they’re not. Here’s what I mean:

You can be “rich” if you make $250,000 a year, spend $250,000 a year, and have $0 in savings. In fact, 47% of Americans can’t come up with $400 for an emergency, and this includes many “rich” people.

But you can be “wealthy” if you make $50,000 a year, spend $25,000, and have $500,000 in savings.

It’s all about the relationship between your numbers. Choosing to be wealthy over rich gives you freedom and control over your life. Isn’t that what you really wanted all along?