8 Money Tips Millennials And Gen-Z Should Borrow From Their Parents To Build Wealth
Younger generations struggle to build wealth because they haven't learned the basics of finance.
Alexander Grey | Unsplash Millennials and Gen-Z folks are often criticized for their money management. While many younger generations feel financially insecure and priced out of the housing market — a condition that's no fault of their own — they're hardly a monolith.
There are no shortcuts in life, but this depends on the knowledge you have, the perspective you take, the position you're in, and the financial basics you've been taught. While we can't immediately change the economic climate, Millennials and Gen-Zers can put themselves into a better financial position by taking a few money skills out of their parents' books.
Here are the money tips Millennials and Gen-Z should borrow from their parents to build wealth:
1. Learn one money-making system
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People struggle to make much money because they have a system that complicates the process. Namely, they try to take on too much at once when in reality, most money-creation techniques are straightforward.
When we take the courage to choose one model we can focus on for, say, the next six months, we will find it far easier to see what needs to be done and to take the necessary steps.
2. Seek out a money mentor
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There are few ‘shortcuts’ that are more direct than having the opportunity to talk to — and be guided and mentored by — people who have already done what you want to achieve. You can save months and years of directionless mistake-making by hearing it from someone who’s been through it all.
Many people are willing to answer questions and give up more extended periods to help. You just need to ask enough people. And if direct guidance isn’t possible right now, you can read their books and study their courses.
3. Let go of the idea that money is bad
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Psychological conflict is a significant block that stops many of us from acquiring the money we want. We grow up accumulating unhelpful beliefs about money and wealth that associate it with unfairness, manipulation, or even evil.
But this only depends on the context. This has nothing to do with money, which is simply a tool. Understanding that money is essentially a token of appreciation for your good work, you can detach yourself from the sabotaging thought that getting money is in some way bad.
4. Pay to play
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You needn’t spend money to make money, as the adage goes. But so many people limit themselves by getting overly precious about investing money to allow them to reach higher levels of income.
One such way is paying to join groups, cohorts, coaching circles, masterminds, and so on. This gives you access not only to the specific knowledge you need to make money but, more importantly, to the people who can help you and open up new connections and referrals from which your money-making system stands to benefit the most.
5. Put more reps into less
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If we’re spreading ourselves across a range of money-making schemes, we’ll afford less time and attention put towards any one thing. This is simple physics. Money needs your attention more than anything else, especially in the early stages of what you’re building.
Making money requires you to show up repeatedly, to bring thought and repeated actions to bring about results. So by focusing on less and bringing more daily action to that thing, you can gain a tremendous advantage. This is how to grow a money tree that doesn’t die.
6. Copy someone else’s formula
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Many people have obviously succeeded in making a lot of money. And many of those within this ensemble have put time into systematically demonstrating and teaching the world how they did it.
Invest time into learning other people’s models rather than inventing your own process from scratch. The Internet has brought with it untold resources in this way. Your main challenge becomes filtering through these options and maintaining focus without getting diverted.
7. Stay broke
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This is something I learned from real estate mogul Grant Cardone. Most people have yet to learn how to manage their money.
Because of this, they drain most of it before it has the opportunity to accrue into real wealth. To avoid running on a hamster wheel of ‘just enough,’ the trick is to collect the money you earn and put it somewhere you can’t access it.
This way, you 'stay broke' because you develop the discipline to say no to expenses you don’t need to spend. You become rich more efficiently because that money accumulates fast, free of interference.
8. Focus on problems, not passions
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It’s easy to follow the oft-repeated mantra of doing what you love. It absolutely will help you to find a way to enjoy what you’re doing.
The problem lies, however, with people getting overly romantic about the type of work they dedicate their time to at the expense of making much money. Not every income source was created equally.
If making money is your priority, focus on where you can viably solve real-world problems instead of focusing on your passions. This simple shift in mindset gets you back into the world of earning because people pay money to solve problems and nothing else.
This needn’t mean doing something you hate. Just don’t expect it to continually revolve around your passions. As you make money and develop mastery in that thing, you will likely build a passion for that thing anyway.
Alex Mathers is a writer and coach who helps you build a money-making personal brand with your knowledge and skills while staying mentally resilient. He's the author of the Mastery Den newsletter, which helps people triple their productivity.