Why Six-Figure Salaries Aren’t Enough for Millennials and Gen Z
Awesome you’ve reached the six-figure salary milestone! However, it seems that the old benchmark of $100,000 as the key to financial stability is no longer relevant. A recent survey by PYMNTS revealed that about 70% of millennials are still living paycheck to paycheck, with the median salary for Americans at around $70,000.
Unfortunately, this struggle has become a daily challenge for younger generations, with 33% of millennials finding it difficult to pay their bills. The American dream of living comfortably is beginning to feel like a distant fantasy.
The difference between the baby boomer generation and younger generations is striking. Baby boomers were able to live a stable and affordable lifestyle with their salaries, homes, and cars. In 1980, American families had a median income of $75,672, which has now dropped to about $70,784 in 2021. This means that millennials and Gen Z are paid less than their parents, and their salaries don’t stretch as far due to high inflation.
Moreover, young people are now burdened with student loans even as they start their careers. While they may be the most educated generations yet, their degrees don’t necessarily pay the same dividends as they used to. This is because everyone else they are competing with for jobs also has a degree.
Despite these challenges, there are steps you can take to make the most of your salary. One way is to create a budget and stick to it. Review your essential monthly expenses like rent, insurance, food, and utilities, and see if there are areas where you can cut back. You can also use apps to save money on purchases and find deals for events, travel, and clothing.
Using a credit card can also be a smart way to earn rewards for your purchases. You can accumulate points that can help pay off your credit card or save towards flights. However, remember to pay off your credit card balance every month to avoid high-interest charges.
In conclusion, the struggle to live comfortably on a salary is a daily reality for younger generations. However, with smart budgeting, shopping, and credit card usage, you can make the most of your money and improve your financial situation.
Hey, I’m Matt a financial content writer with a passion for helping people improve their financial well-being. I have 15 years of experience writing on topics such as personal finance, investing, budgeting, and more. Thank you for reading my work, and I hope it helps you on your journey towards financial success. Learn more about me at MattHagens.com