For the third consecutive year, research reveals that the rising cost of living is the biggest concern for Gen Z and millennials. According to Deloitte’s 2024 Gen Z and Millennial Survey, 56% of Gen Z and 55% of millennials are living paycheck to paycheck. Despite this, nearly half of Gen Z (48%) and 40% of millennials expect their financial situation to improve in the next year. Financial freedom means taking control of your finances so you can enjoy spending today without jeopardizing your future goals. Daily decisions about spending and investing play a major role in shaping your financial well-being. As Warren Buffett wisely said, “Do not save what is left after spending, but spend what is left after saving.”
Four Steps Gen Z and Millennials Can Take to Achieve Financial Freedom
1. Track Your Current Financial Status

The first step to financial freedom is understanding where your money is going. Keep track of your spending by grouping it into necessary expenses (like rent and groceries), fun expenses (like dining out), and savings. Try to keep your basic expenses below 50-60% of your take-home pay. Use tools like Alpha Wealth’s free budget calculator or simple spreadsheets to monitor your spending and make better choices. As Dave Ramsey puts it, “A budget is telling your money where to go instead of wondering where it went.”
2. Save and Pay Down Debt

With the high cost of living, saving and paying off debt can be tough for Gen Z and millennials, but small changes add up. Start by saving enough to cover one month’s living expenses for emergencies. Focus on paying off high-interest debt, like credit cards, and automate your savings so you consistently set money aside. Automating savings can build good financial habits, ensuring you save before spending. For instance, Sarah, a 28-year-old, used an app to track her spending and cut back on dining out, redirecting that money to her savings. She built an emergency fund and started saving in a high-interest account. Three years later, she’s financially secure and less stressed.
3. Invest Smartly

Investing is key to building long-term wealth. Aim to invest at least 10% of your income. Invest in yourself through education and training to increase your earning potential. Consider passive income options like high-yield savings accounts, and take advantage of the power of compound interest. If your employer offers a matching pension scheme, make sure to contribute enough to get the full match. For example, if you start investing €500 a month at age 35, you could accumulate over €190,000 by age 50. But if you wait until 40, you’d need to invest €1,000 a month to reach the same amount by 50. Starting early makes a big difference.
4. Manage Your Finances as Your Income Grows

As you earn more, avoid the temptation to increase your spending. Benjamin Franklin cautioned, “Beware of little expenses; a small leak can sink a great ship.” Instead, increase your investments as your income rises. Regularly review and adjust your financial plan to stay on track with your goals. As Robert Kiyosaki said, “Financial freedom is available to those who learn about it and work for it.”
Conclusion
Reaching financial freedom takes discipline, planning, and ongoing effort. By tracking your spending, saving, paying off debt, and investing wisely, Gen Z and millennials can create a stable financial future. Remember, financial freedom is a long-term goal. By taking small, consistent steps and staying focused on your financial objectives, you can enjoy both the present and the future without sacrificing your long-term dreams.