Only a few generations have encountered financial difficulties. However, the unfortunate reality is that millennials face more financial challenges than any previous generation since the Great Depression.
Nevertheless, I understand. We are now on a different planet. Everything are becoming more pricey. Education debt is a pain. It takes a lot of effort to find work. Nonetheless, this does not imply that becoming wealthy is impossible. Before I made my multimillion-dollar fortune, I was locked into a job I despised. I was making $3,000 per month and desired $4,000.
That extra $1,000 was the most significant goal I’d ever accomplished. I achieved my objective because I committed to making better financial decisions. And if millennials want to be wealthy, they must avoid the following five major mistakes:
1. Utilizing credit for non-income-producing activities: According to Schwab’s 2019 Modern Wealth study, millennials spend an average of $478 a month on “non-essential” items (such as dining out, entertainment, luxury items, and vacations). That’s a lot more than what baby boomers spent, $359.
One of my most important money principles is that I only use my credit card for significant purchases that I know will benefit me financially. It is a wise investment to spend money on a class to improve your skills or on office space to conduct your business from. Purchasing a motorbike or costly shoes that will eventually wear out is not a good investment.
2. Comparing your wealth to that of others: Someone else’s money, good or bad, will not pay your bills, fund your retirement, or give you peace of mind. Roughly two-thirds of millennials are on a fixed income. Maybe you’re not one of them, but just because they’re in worse shape doesn’t imply you’re in better shape.
It is a mental trap to compare your worth to that of others. Quit worrying about how much behind (or far ahead) everyone else is financially. Maintain your focus on your financial objectives. Stop squandering your time. Have a seat and crunch the figures.
Learn what it will take to attain seven figures. How many different ways may a million dollars be collected? What are the mistakes you need to quit making? Take action once you’ve developed a game plan.
3. Acting as a “pretender spender”: This is related to my first argument regarding spending on non-income-producing activities. I’m not saying you can’t splurge every now and then (but don’t do it frequently and don’t charge it to your credit card). Allowing what you see on social media to entice you into buying stuff you don’t need is a major error.
People on Instagram with fancy dinners, parties, automobiles, fashionable clothes, and trips aren’t always “rich.” They are almost certainly “pretender spenders.” These are the ones that strive to impress others by displaying lavish items that were most likely acquired using their parents’ credit cards (or their own).
An Instagram lifestyle is not a way to live unless you are a full-time social media influencer generating millions.
4. Choosing comfort over freedom: The polar opposite of prosperity is comfort. The middle class is established on the quest for comfort; they are satisfied with a $50,000 salary, two weeks of vacation, health insurance, and a home. Nevertheless, wealthy people are looking for more than just comfort.
Instead, they seek an abundance of money because it provides them with more freedom and security than they will ever require. Too many millennials are content with their financial situation when they should be striving for more.
If all you want is comfort, you’ll probably never achieve financial freedom. You can live a middle-class life if you are comfortable. Freedom ensures a prosperous life. Make an informed decision.
5. Insufficient income: You should always save and invest money, but it’s equally necessary to earn more. The rate of return on your assets will only rise if your wages rise. Even if you make a lot of money, you can always make more.
The most common mistake that millennials make is failing to work hard in order to increase their income. Work harder at work to earn a raise. Find a new job that pays significantly more. Start a side business. My advice to millennials who want to go ahead is to aim for an annual salary of at least $100,000. Let yourself be dissatisfied with the status quo.
Grant Cardone is the CEO of seven privately owned firms and the best-selling author of “The 10X Rule.” He also goes all over the world to help Fortune 500 companies, small business owners, new businesses, and governments grow their businesses. In 2017, he was named one of Forbes’ 25 Marketing Influencers to Watch. Follow him on LinkedIn by clicking here.