Yahoo Finance I’m a Millennial Millionaire: Here’s What People Get Wrong About My Generation and Money
Millennials can be a punching bag when it comes to jokes about money. The tired trope of millennials eating too much avocado toast to afford a home shows no signs of slowing down. However, some real-life millennials are fighting back against this mischaracterization.
They say it’s an unfair stereotype perpetuated by grumpy older folks who don’t understand what millennials have inherited financially — and what they’re doing with it. Just ask Steven and Lauren Keys, the millennial millionaire couple behind Trip of a Lifestyle. Despite joining the workforce amid the wreckage of the Great Recession and facing headwinds like soaring education costs, this husband-wife duo still managed to cross the $1 million net worth mark by the ages of 33 and 34. How’d they pull it off?
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According to them, through disciplined budgeting, living well below their means and making calculated career moves. All while taking full advantage of their youth to travel and experience life rather than grinding at a desk.
“Throughout our 20s, we lived frugally — sharing a used car, cooking most meals at home and getting our entertainment for free out in nature,” said Steven. “Neither of our salaries ever cracked six figures, but with such a low cost of living, we felt wealthy even working our first jobs out of college, which paid under $40K annually.”
Yeah, you read that right. These millionaires were pulling in less than $80K combined at first! But by keeping their expenses insanely low at just $18K-$26K per year and consistently investing over 60% of their take-home pay, their net worth skyrocketed into seven-figure territory in a little over a decade out of school.
So let’s debunk some of the biggest millennial money myths this hardworking couple is shattering.
‘Millennials Will Never Afford a Home’
Just two years out of college, Steven and Lauren put down $71,000 in cold hard cash to purchase their first home mortgage-free at ages 25 and 26.
“Millennials are often stereotyped as the generation that will ‘never be able to afford a house,’ but we totally reject that notion,” stated Steven. “By living frugally and working average, middle-class jobs, we actually paid cash for our first home at ages 25 and 26.”
With a bit of discipline and looking in the right — read: cheaper — locations, these two prove that homeownership is still absolutely achievable for millennials.
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‘Millennials Are Chronic Job Hoppers’
This one may be down to a difference in priorities. You’d think being open to greener professional pastures would be considered an asset, not a liability. Yet the perception persists that millennials will never gain career traction by job hopping too often instead of staying loyal soldiers for decades like previous generations.
“It’s the complete opposite: Millennials’ fearlessness to leave jobs when their skills have exceeded their pay can be a massive career accelerant,” Steven said. “We personally quit our jobs and took a six-month sabbatical in Hawaii only to score significantly higher salaries upon our return.”
By knowing their worth and seizing opportunities for big pay bumps, Steven and Lauren were able to supercharge their income trajectory and fatten their savings rate in the process.
‘Millennials Spend Money Like Crazy’
Wait, these are the same millennials who are “killing” incumbent industries like cable TV and diamond rings by avoiding them, right? Well if that’s crazy spending, sign millennials up.
“Keeping a wide gap between our income and our expenses allowed us to invest the difference in passive index funds and grow a big nest egg at a very young age,” said Steven. “Our net worth jumped past the million-dollar mark in 2023, at the ages of 33 (Steven) and 34 (Lauren).”
At the end of the day, the lessons from this millennial money master class are simple: spend less than you earn, invest early and often, live within reason and find fulfillment outside of buck-chasing. Homeownership, career freedom and a $1 million net worth can be yours too if you reject the stereotypes and make smart choices.
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This article originally appeared on GOBankingRates.com: I’m a Millennial Millionaire: Here’s What People Get Wrong About My Generation and Money
