How Gen Z is Getting Rich

Strategies for Gen Z to get rich

Generation Z is now the second youngest generation, with millennials before and Generation Alpha after. Gen Z is redefining how to get rich. 

The Internet is at our fingertips, and as socially conscious citizens of our rapidly changing world, there are several unique strategies Gen Z uses nowadays to build wealth. 

Look no further for innovative approaches that are setting this generation apart when it comes to personal finance and wealth creation.

How Gen Z See Finances

Gen Z’s view on finances is a complex mix of anxieties, aspirations, and tech-driven savvy. Compared to other generations, Gen Z reports higher levels of financial stress, likely due to factors like rising living costs, student loan debt, and limited access to affordable housing.

But despite the stress, Gen Z shows a strong desire to manage debt responsibly. They are actively seeking information and strategies to pay off loans and build savings.

Contrary to stereotypes, Gen Z is highly interested in investing, with surveys showing 90% expressed interest in stocks, bonds, and other assets. Maybe that can be put down to the lower barriers to entry that currently come with investing, but more on that later.

However, many lack the knowledge and confidence to start investing. They turn to online resources, social media, and alternative platforms for information, highlighting a need for accessible and reliable financial education.

Gen Z prioritises ethical and sustainable consumption, often factoring in a company’s values and social impact before making purchases. They value experiences over material possessions, leading to mindful spending habits and choosing financial freedom over chasing luxury.

Further, Gen Z is critical of the return on investment of traditional higher education. Many are electing for alternative education paths like online courses, boot camps, or self-taught skills, especially in high-demand tech fields. This approach often results in lower debt and a quicker path to earning.

Overall, Gen Z is a financially aware and engaged generation facing unique challenges. They proactively seek financial knowledge and tools but require accessible education and guidance to navigate an evolving economic landscape. But general trends and personal views within Gen Z, of course, vary greatly. 

Investing in Digital Assets: Cryptocurrency and Gen Z’s Wealth Journey

Gen Z embraces digital tools for managing finances. They prefer mobile banking apps, online budgeting platforms, and robo-advisors for investment guidance.

And social media is their bread and butter. Gen Z actively seek financial advice and inspiration on social media but are wary of misleading information and prefer authentic, relatable content. Gen Z is turning to platforms like TikTok and Instagram not just for entertainment but also for education. 

Finance influencers are demystifying complex financial concepts, making them accessible and engaging. This has led to a more financially literate generation that is better equipped to make informed financial decisions.

Cryptocurrency and NFTs (Non-Fungible Tokens) are more than just buzzwords for Gen Z. They are investing in these digital assets early, often using platforms that lower the barrier to entry. While these investments carry risk, their familiarity with digital platforms gives Gen Z a unique edge.

Practical Strategies for Financial Success

How Gen Z is Getting Rich

It all starts with building a solid foundation. Awareness of spending is key, so Gen Z is using budgeting apps and spreadsheets to understand where the money goes more than ever.

An emergency fund is becoming a luxury, but aiming for three to six months of living expenses to cover unexpected costs is the plan for many Gen Zers. 

Beyond managing debt wisely, investing for the future, and leveraging exciting technology, as this article has already touched on, Gen Z implements many strategies for financial success.

Researching and recognising one’s worth is a key talent of Gen Z. Confidently negotiating for fair compensation at work is a must-know-how.

Living below your means is a vital strategy today, too. Financial minimalism helps you see the forest from the money trees. Avoiding lifestyle inflation and resisting impulse purchases is easier said than done but worthwhile.

And, of course, Gen Z seeks help if they need it. Don’t hesitate to consult a financial advisor for personalised guidance.

Side Hustle Culture

Gen Z is capitalising on the gig economy like no other generation. Leveraging platforms like Uber, Airbnb, and Fiverr, they are creating diverse income streams. This flexibility allows them to monetise their skills and passions in ways not possible for previous generations.

Multiple income streams mean no reliance on one source of income. Should it fall through or one loses their job, they will still have money coming in. Freelancing and online business diversify income.

For many, side hustles are a necessity due to rising living costs, student debt, and stagnant wages. It’s not just about “chasing dreams” but making ends meet.

However, Gen Z also values aligning side hustles with their passions and interests. They seek creative outlets, entrepreneurial ventures, and ways to monetise their skills and hobbies.

Gen Z won’t pull up their bootstraps like generations past, however. Gen Z is wary of the glorification of excessive “hustle” at the expense of well-being. 

They prioritise work-life balance and avoiding burnout, seek sustainable practices over relentless grinding, and look for side hustles that contribute to social good or align with their values, seeking purpose beyond just making money.

Gen Z is also wary of scams and unrealistic promises. They emphasise research and due diligence before investing time and effort in a side hustle, are aware of potential exploitation in the gig economy, and advocate for fair working conditions and ethical treatment. You should be, too!

Gen Z views side hustles with a pragmatic and values-driven lens. They see them as tools for financial security, personal growth, and contributing to meaningful causes, but with a strong emphasis on avoiding burnout and maintaining well-being.

Investing Early

Though there’s some debate about whether he said it or not, Albert Einstein is quoted saying “Compound interest is the eighth wonder of the world. He who understands it earns it… he who doesn’t… pays it.” He called it the single most powerful force in the universe. Gen Z agrees. Get in sooner, rather than later, for the best outcomes. 

Start small, educate yourself, and stay consistent when it comes to investing. Even with limited funds, automate regular contributions to a high-yield savings account and explore low-cost index funds through robo-advisors or fractional shares. 

Prioritise high-quality financial literacy sources and remember long-term goals like retirement, focusing on steady growth over risky bets. 

Leverage technology like budgeting apps and be wary of scams. Remember, it’s a marathon, not a sprint, so be patient, adaptable, and enjoy the journey!

The Bigger Picture

Social responsibility is a significant factor in Gen Z’s investment decisions. They prefer companies that prioritise sustainability, ethical practices, and social responsibility. 

This shift is not just about aligning with their values; it’s about investing in businesses that are thought to be sustainable in the long term.

Gen Z is charting a new course to wealth, characterised by technological savviness, adaptability, and a strong sense of social responsibility. 

Their innovative approaches to income generation, investing, and financial management are not just shaping their financial futures but are also influencing the broader financial landscape. 

As businesses and financial institutions look to the future, understanding and catering to Gen Z’s unique preferences and behaviours will be crucial. 

Remember, financial success is a journey, not a destination. 

Be patient, consistent, and adaptable, and you’ll be well on your way to achieving your financial goals.