The current state of the US economy has Millennials and Gen Z dealing with rising prices comparable to the days of Pearl Harbor, the Korean war and Watergate. Inflation has divided generations, giving each a different quality of life. In 1968, the U.S Federal Government had a minimum wage set at $1.60 which is the equivalent of $11.53 in 2019 dollars when it comes to purchasing power. In 2022, some states are still paying just $9 minimum wage which doesn’t give the current generations much flexibility, especially in the vehicle and housing market industry. In order to amount to the standard of living baby boomers experienced, millennials and Gen Z will need to make a minimum of $25 hourly if they plan on being homeowners without carrying major debt around. Although, with smart spending and saving, as well as keeping an eye on the economy, the younger generations have a chance to achieve the lives they desire.
- Consider Not Ordering Take-Out Food.
Cooking from home and planning your meals will save you an immense amount of cash. Using apps such as DoorDash and UberEATS adds up quickly – start budgeting for groceries and stick to your list.
- Look Into Receiving Help When Filing Your Taxes.
With professional assistance, you could be saving yourself tons of money this upcoming tax season. Organizing your income with an accountant can assist you in finding strategies you may be unaware of on your own. Tax laws change yearly and it is hard for the average person to stay up to date. An accountant can help identify new deductions that may be available to you. This could potentially reduce your tax liability and increase possible refunds from the IRS.
- Spend Wisely.
Avoid using credit cards if possible. This is another top reason why Americans remain in debt. There are other ways to build your credit such as asking a family member to add your name onto the electric bill for a few months or using your credit cards for specific things such as gas and then paying it off immediately. Consider buying used cars locally rather than a dealership.
- Have a Cushion Built for Yourself Before Making Big Purchases.
If your security deposit is $1,200, and your rent is $1,200, then you need to pay $2,400 upfront and if that’s all you have in your account, you’re setting yourself up for failure. Having nothing in your account will make it remarkably difficult to cover emergencies or basic life needs. Creating a nest for yourself will likely lead to a more permanent comfortable lifestyle and you won’t have to constantly be catching up with expenses.