Gen Z, born between 1997 and 2012, has faced significant challenges, including record-high inflation over 40 years, the aftermath of a global pandemic, and the highest interest rates since 2007. As a result, they have had less time to accumulate wealth compared to older generations.
However, Gen Z is outperforming previous generations in areas like income and homeownership.
Earlier this month, Fortune reported that Gen Z is earning nearly $10,000 more compared to adults thirty years ago. Additionally, a 2023 Redfin study found that 30% of 25-year-olds owned their homes in 2022, compared to 28% of millennials and 27% of Gen X at the same age. Gen Z’s homeownership rate is only 2% behind that of baby boomers, with 32%.
Though younger, Gen Z enjoys some financial advantages over many older generations. If you want to get ahead and make big money like Gen Z, here are some tips.
Live at Home Longer
While you might want to move out as soon as possible, staying with your parents longer can save you a lot of money. If you have a full-time job and can live rent-free at home, consider staying an extra year or two to build your savings and pay off any debt before moving out.
Ask for a Raise
Gen Z is already earning more money than other generations. Asking for a raise at your current job could help you get closer to the financial standing that many Gen Zers enjoy today.
Switch Jobs to Boost Your Income
If a raise at your current job isn’t possible, consider looking for a new opportunity. Changing jobs and moving to a new company can sometimes lead to a larger salary increase and a higher title than staying at your current company.
Get a Side Hustle
If a raise didn’t work out and finding a new job is taking longer than expected, consider getting a side hustle. Side hustles can include babysitting, dog walking, pet sitting, driving for rideshare services, food delivery, or freelancing in your current field. Adding an extra income stream is a key way to reach your financial goals faster.
Work Toward Purchasing a Home
Gen Z’s homeownership rate has already surpassed that of both millennials and Gen X. To achieve the same status, try to budget aggressively each month to save extra cash for a down payment.
