Yahoo Finance How These Gen Zers Achieved Financial Independence (and So Can You)
Many young Americans dream of retiring early. But only a small percentage of Gen Zers have achieved true financial independence. If that’s your goal, studying this group’s successes can help you chart your own path to early wealth.
Here’s a look at some well-known examples of wealthy Gen Zers and what they did to get so rich.
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MrBeast: Dedication
MrBeast is one of the most famous YouTube creators on the planet, but he didn’t get there overnight. It took years of daily studying to learn how to create YouTube videos that would consistently go viral and earn him millions in the process.
In a recent interview with Joe Rogan, MrBeast shared a story about his growth in the early days. He said all he did was talk or think about how to get better at YouTube — from the moment he woke up to when he went to sleep. The hard work obviously paid off, as years later, he’s become the undisputed champion of going viral.
The lesson for the average person is that sometimes there’s no substitute for hard work. Fully dedicating yourself to something can turn you into an expert on the subject, which can be what it takes to get wealthy at a young age.
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Kylie Jenner: Using a Social Following To Launch Businesses
Kylie Jenner built a $900 million fortune in under three years. She leveraged her social media following to launch Kylie Cosmetics — which sold $330 million worth of makeup in 2017 alone.
Jenner had a built-in advantage thanks to the family show, “Keeping Up With the Kardashians.” But not all teenagers who are on TV achieve the success she has. It’s a testament to her understanding of her audience.
This is something you might be able to do as well if you have a social following. Even micro-influencers can earn up to $500 for a single sponsored post. You can also follow Jenner’s lead by launching a company that sells something your followers want.
Jake Paul: Diversification
Jake Paul initially grew to prominence as a social media influencer on platforms like Vine and YouTube. Then he transitioned to TV, joining the Disney Channel series “Bizaardvark” in 2016. Since then, he’s become a huge boxing star and built a betting app valued at around $375 million.
Paul’s fortune didn’t come from a single activity. He’s built it by following his interests wherever they take him. Doing the same can help you create multiple sources of income. Diversifying in this way will give you more chances at achieving your breakthrough moment.
Financial Strategies for the Rest of Us
Let’s face it — not everyone can invent cutting-edge technology, reach millions of online followers or dedicate hours to studying something every day. For everyone else, following tried-and-true financial strategies is the most realistic way to build wealth.
Start With a Budget
Begin by creating a budget. Figure out how much you have left over each month after mandatory expenses. This is the maximum amount that you can save monthly. Any discretionary purchases you make will eat into the figure and delay your wealth accumulation.
Budgeting gives you a clear idea of how long it’ll take to reach your financial goals. This makes it easier to plan or make adjustments if the timeline doesn’t match your expectations. For example, you might want to start a side hustle if you don’t have any money left over after getting paid.
Set Measurable Financial Goals
Next, set financial goals for yourself. These should be specific and measurable, such as saving $10,000 over the next 12 months. Without goals like these, it’s easy to get discouraged from ever trying to build wealth.
It can be hard to stay motivated when there’s a lot of ground between where you are today and your ultimate goals. Setting smaller goals gives you something more realistic to work toward. This can help you stay on track with saving so you have the stamina to eventually reach your major financial goals.
Invest
Finally, it’s also important to make smart investment decisions when building wealth. A high-yield savings account will pay you only around 4% or 5% annually. The S&P 500 market index’s annual returns average around 10%. This 5%-plus difference, compounded over years, can massively impact your wealth.
Just don’t assume that you’ll only make profits in the stock market. Individual years can be negative. But over time, history has shown that investing in broad-market indexes like the S&P 500 is the most consistent path to building wealth and achieving financial independence.
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This article originally appeared on GOBankingRates.com: How These Gen Zers Achieved Financial Independence (and So Can You)
