Why 70% Of Millennials Are Financially SCREWED – Add me on Instagram GPStephan
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A recent study discovered that 70% of millennials are living paycheck to paycheck in 2021, which is significantly higher than ANY other generation. They say, the aspect of “living paycheck to paycheck” is a better indicator of economic needs and water, just as much – if not more, than income or wealth, because how much a person has left over – AFTER expenses – is a MAJOR COMPONENT to your overall financial health. .
However…a lack of INCOME might not be the be the entire problem here…even though the median income for millennials was $57,500 per year…like I mentioned, TODAY, 60% of millennials earning above $100,000 are ALSO living paycheck to paycheck…indicating that, there’s a MUCH BIGGER PROBLEM than most people initially expect.
The BIGGEST ISSUE from all of this, though…is that “Millennials spend an average of $838 a month on nonessentials” – which is absolutely NOT acceptable if you’re living paycheck to paycheck. The biggest spending categories here include vacations, dining out..and COFFEE..which, they say, is heavily influenced by your friends, boredom, advertising, and social media. AND THEN…the final nail in the coffin: 49% of millennials respondents said their non-essential purchases contributed to DEBT.
So, overall…the reason why 70% of millennials are living paycheck to paycheck, without any money left over to save and invest, is both a COMBINATION of low wages, increasing expenses, and poor spending habits, all cumulating into the perfect storm of little leftover money.
If you’re making UNDER the median wage…and you’re already SAVING and CUTTING BACK as much as you possible can…then switching jobs, learning a new career, and increasing your income would be the best solution to start investing more. However, if you’re making ABOVE that median wage…then I would CAREFULLY look over every single one of your expenses, identify where your money is going, and then find a way to scale back and save the difference.
Lifestyle inflation, and “keeping up with the Jones” seems to be the main driving force behind why 60% of millennials earning above $100,000 say they’re ALSO living paycheck to paycheck…and, that deserves a full evaluation to eliminate what you don’t absolutely need.
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I feel like paycheck to paycheck means different things to different people. Like, we spend all our money after 401k, roth, cash savings and regular investing. This is money we never even see bc it goes automatically into the various accounts. It might FEEL like paycheck to paycheck but I don’t think it’s fair to call it that. It’s called having all your money accounted for. Which is not the same thing.
“A rapid transit janitor who makes $235,000 per year” What a load of sh*t!! If janitors were all making $235K what a different world this would be.
Yeah, that is what I refer to as a unicorn job. It’s a bs tactic not much different than saying you could make so much money if you won the lottery for millions. Both circumstances are so low chance they’re not even worth contemplating.
It’s true – when you make $162K in overtime, lol
There have been a ton of articles on this unicorn worker
😭
Student loan debt is the primary cause. Having a strong financial education curriculum mandated from JH through HS and that is not influenced by big banks would eliminate a large chunk of the problem.
Nothing worse than working, throwing every last dime at the mountain that is student loan debt and then come out if it 2-4 years later with absolutely nothing to show for it other than losing those years to potentially invest and build wealth.
Most people have great jobs that would make them millionaires in 5-10 years…but have student loans or other forms of debt that make it impossible to actually build a positive net worth until they are paid in full.
The only fix is to sacrifice and pay off the debt with Gazelle intensity so that you can actually start using monthly funds to build wealth for yourself rather than giving it to lending institutions so that they can invest it to hook other young fish into the debt cesspool and line their pockets.
What’s up Graham, it’s guys here! 👋🏽
Should of never got married and had kids then you would of had all that money 😂😂
Some people just don’t realize they are well off. I let people stay in my home rent free, they automatically adjust to “living paycheck to paycheck” again. Despite me essentially freeing a third or more of thier income…. It’s weird and honestly I’ve lost a lot of faith in people.
Im a 35 yr old millennial living at the poverty line and no retirement saved. If I didn’t have my friend who charges me half the going rate for rent I would be homeless. I have mental health issues which prevent me from achieving normal professional goals. Wish I could go back to school but I already have a student loan that I’m paying down right now from my last attempt.
I make 163k a year and I live paycheck to paycheck because I fucked up
I feel the same way at 23. I’m financially free and it’s so crazy seeing how 43% don’t invest and 70% live paycheck to paycheck! I was a below average kid in high school and now I’m living a life I only dreamt of when I was younger. Love the videos graham and appreciate the nonstop knowledge! Love it all.
I blame the pumpkin spice lattes
Onlyfan créators will soon be collecting unemployment check
There are better alternatives to getting an education, such as going to a technical school for air condition repairs, desiel mechanic, and nursing schools. Plus, if you join the military, they will pay for your education.
There is a reason why everyone hates the absolutely useless millennials
Not to sound like a victim (cause I hate that), but I think we need our own “GI bill” equivalent. Something to majorly jumpstart the Millennial and Gen Z economy again
Okay look. Let’s just be honest here and stop trying to be everyone’s buddy. If you’re making that much money and still living paycheck-to-paycheck, it’s not because of the economy. It’s because they are not living within their means. You don’t need a luxury apartment, you don’t need to eat out every single week. The f*** is wrong with you? You know why Boomers were able to buy a house when they were 17 years old and have a family of 37? Because they lived within their means. It’s not the economy, it’s you. You know how I know? Because I make less than a third of what you make and I haven’t lived paycheck-to-paycheck in years. God damn
The biggest takeaway from this is that living in the big city is one of the stupidest things you could possibly do. Leave the cities
It’s frustrating to see people earning over 100k not spend it wisely. I wish I earned that much. (I’m working on going back to school for a better career, would still average 70k at most.) I never dine out or take vacations or buy unnecessary items. And I get everyone’s going to want to do those things once in a while, but it shouldn’t be so often it’s making you live paycheck to paycheck.
Nothing about this is going to change. When confronted with these facts and their senseless spending habits, millennials blame it on boomers and continue doing the same thing they’ve been doing
Yup
Those spending habits are keeping our economy afloat.
Im a filipina citizen thats about to move to Canada for undergraduate studies. Im definitely planning on investing in both an education and a retirement fund once i do find an income. How do non-US/canadian citizens like me invest in the Roth IRA?
Drive a thrifty car, learn to make really good coffee at home. I don’t know anyone who makes 350K even in the big city and they get by, even save and invest money.
Wow…. Making 100K a year and living paycheck to paycheck? If I made that I would never be paycheck to paycheck 🤣
I 40 years old now and I finally figured out how to manage my money. Oh boy! Well, it took me 10 years of simply researching ways to do it. By simply, opening up savings account and labeling it under what is the goal for. That’s has worked!
What’s up Graham it’s guys here! 😄
Saving money? Way to downplay how the GFC annihilated the job market for Millennials. Let’s not forget the second once-in-a-lifetime economic crisis we’re currently slogging through.
I smash it if I like it! 😎
Sadly didn’t start investing until about the age 36. For various reasons. My roth gets 150 a month, not great, but it’s what I could afford, and I do it consistently. My personal investment goes up and down, and I’ve cashed it out a couple times to pay for big expenses. But this month I managed to sock away 800$ and felt good about myself and at the same time I managed to purchase a house. Owning the house will drop my housing costs to less than 25% of my income. I think I’m going to make it!
This guy is super smart, dont wait and dont get into debt, I am playing catch up now. Of course my education paid off so I can play catch up.
The bad news: Millenials are financially screwed
The good news: It’s their own damn fault
Why are 100% of your video titles CLICKBAIT?
im a millennials. but when i get paid,i invest on growing my farm. and im glad investing on them
I feel like all it takes is for the individual to take responsibility
If people got a book and wrote down to the penny on what they spend their eyes would open
I did it and it was crazy to see how I was literally spending everything on food and drinks
Now I cook everyday and am saving a ton
Great info. You’d think it’s obvious Americans in general are attempting to live above their means. I guess it’s just bad parenting at the end of the day. I learned these principals at a very young age
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Three vacations and $70/day in groceries. You deserve to be broke.
intro- What’s up Gram it’s Guys here?
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$350k a year in very very high income! Hardly middle-class. Our household makes substantially less, but our key factor is that we make the right choices on money. We don’t spend $8000 a year on vacations or $6,000 on entertainment !! We make smarter moves..buy what we need, not impulse purchases on what we ‘want’. We buy stuff on sale, shop at discount stores, eat out at restaurants rarely, pack lunches and coffee from home always.
We also have never bought a brand new car ever. It’s like the old adage…it’s not what you make it’s what you keep.
Our lifestyle is excellent and fun, but I can guarantee because of our frugalness (not to be confused with cheapness), our net worth is probably at the same as people making more income than us.
I’m at housing being like 0.2% of the yearly income. It’s honesty life changing. Renting in the US is a scam that primarily transfers wealth from the poor to the wealthy. Nothing you can say will change my mind as I’ve seen both sides. Being a landlord is great. Minimal maintenance and a very tidy “passive” income. Not like you’re the one slaving away at the property. Sure it’s a hustle at the beginning, but again not like you’re doing it every single day until you die. Being on the receiving end sucks. Maybe in some location with some landlords this isn’t really the case, but I haven’t experienced it.
I’m finna be graduating uni with over $50k in my bank account, 0 debt, and an actuarial mathematics major. Start investing early 🤩
Currently 6k in debt, let’s get this bread
Lower the real estate prices. ill believe you.
Easy they spend money on things they don’t need but want that’s why 70% maybe more are broke
If I had a dollar for every year in history people said the next generation is screwed… well, I would be sitting pretty on a hefty amount of cash… gold really!
“What’s up Graham, it’s guys here”- Graham Stephan 2021
Here’s the biggest cost: KIDS.
Three vacations a year? Dude, I’m single and even I don’t do that! And I’m in a (relatively) low cost-of-living area. Sheesh.
Were are getting 350k when 90 percent of the people whish they make 100k
Graham, the bad news is… there’s a T-Rex right behind you!
HMMMM… classes like home economics, woodshop and other self sufficiency’s have been have been removed from HS during our generation. Then on top of that we were taught that we were never taught how to balance a budget or anything else useful for being an adult. The only thing pushed on us was to go to college or end up being a bum… I wonder why we have this problem…
If they did not have children, they can cut out a whopping lot of expenses. Another issue is that they were probably living in an extremely high cost of living area – Look at how much goes for housing. Also the food, if they wanted to, they can knock off at least half and without children, even more and I think still probably live high off the hog. Let’s say their net income went up 100K per year to 323K per year, they’d probably still living paycheck to paycheck, the extra money going into a more expensive house, more expensive automobile(s), more expenses related to childcare, more fancier vacations, a vacation home, you name it.
The “what’s up Graham it’s guys” thing was funny the first time or two. But seriously….it’s over.
60% of millennials earning more than 100k are living paycheck to paycheck?
You’re doing life wrong then. Cut back your expenses. It’s really not that complicated. But it is hard for our entitled generation.
I’m a millennial. I lost my ass is 2008. I’ve been living Dave Ramsey style since 08 always working 2+ jobs and after this bull market it finally paid off.
If you will live like no one else, later you can live like no one else. – Dave Ramsey
in Vancouver BC we need to earn 258k per year to own a house according to a recent report
I make $20k a year and don’t live paycheck to paycheck. What are people blowing money on LOL
Like Dave Ramsey says. It’s not an income problem…
Hey Graham, is that 20% of gross income or net for housing?
Millenials at least got a shot, gen z is screwed
You should do something that covers more realistic figures. Most millennials don’t make even close to 100k and I’m from Gen Z and I do not have $333 dollars a month to invest with school, car insurance and rent.
So….I can basically just read articles about any topic and make a video providing a summary…
you realize you are a millenial
$12k into hsa? I think that was education fund
“What’s up graham its guys here”
That couch behind him deadass looks like a car
No debt. Still living paycheck to paycheck.
Income has been crap all my life.
You and me both but if we can double our incomes we will both have more options soon!!! Your quote: (No debt. Still living paycheck to paycheck. Income has been crap all my life.)
The amount of ads, sponsored and YouTube, in this video is staggering.
There are millennials making over $100,000 a year? Damn. 😂
Also, I don’t even drink coffee. 😅
I need more drum sets, this is invalid lol. Oh but it is so true lmao
I was lucky enough to have boomer parents who had great financial discipline and education. I went to a state school for engineering and thanks to them I had no debt although my total tuition was around 20K thankfully. But a lot of millennials just have to buy the newest phone, new car, new expensive this and that. I drive 20 year old cars and never had a car payment. I have a 6 year old phone and invest a lot. Excuses are our biggest problem as humans and my generation is no exception.
Graham, How about you budget a 15k-30k realistic lifestyle, i mean grind, i mean …well whatever.
… because they aren’t getting married and they are living above their income … their parents and grandparents sacrificed to buy a house …houses cost no more now than they did for their parents in real $ and interest rates are at historic lows … the boomers made life so easy for their children and grand children that now those children are still acting like teenagers and not growing up !
those biceps tho 👌👌👌
If you are living paycheck to paycheck earning $100k in a big city, you are doing something wrong. In that situation, my opinion is that this person is likely trying to justify their spending rather than changing their spending and spending habits.
Are you going on expensive vacations?
Are you paying subscription fees for things you don’t need or use?
Do you spend a lot on bad habits (smoking/drinking/gambling/etc.)?
Do you eat out more than once a week? (Do you know how to prepare a meal?)
Do you budget?
I know living in a big city can be expensive. I lived in a city larger than NYC for a third of my life (almost 40 now), and expenses were often extremely expensive. I dealt with it by managing my habits and behavior. For example, the price of beef was absurd with 1lb. of ground beef costing $18. Can you guess what I did not eat much of? You have to adapt or change something about your lifestyle.
P.S. Great videos Graham! Though I wish I had found you earlier, better late than never!
i dont understand how people are spending so much on coffee. Every time i go to starbucks they have free coffees just sitting out on the counter.
20% only ok so we’re can I find a 1 room home in Toronto for 500$ a month or 20%
I’m a millennial and I don’t even drink coffee. I don’t understand the coffee thing.
“Whats up Graham it’s guys here.” 🙄
2,200 on food? For a normal family? What?
inflation kill us all canabalisim time
Idiotic making real money and living paycheck to paycheck. Clueless totally, irresponsible or stupid?
Have you ever thought about inflation too it is so high right now
Long term investing is a gamble, especially today. Investment brokers are noting but fancy salesmen that charge fees. They should charge based on your gains only. If they were successful themselves they would have no need for your money. If you like money management, believe you have the wisdom and knowledge, invest directly into the entities yourself.
Investment entities place the most importance on themselves. The investors are second at best.
Hyperinflation. Opportunity cost. Factually speaking, if you invested that $109 in SPYDR in April 2020 instead of paying down fixed rate student debt with 3%APY then you’d have ~30% – 3% = 27% more money. (Multiply 109×1.27)
This video blames the players instead of the fundamental change in the “sport” so to say.
Any time I try to comment mathematics, my comments get deleted. Lol. Who has the incentive to hate mathematical laws so badly?
The people making 100k plus and living paycheck to paycheck live in LA where 100k a year is like 50k a year elsewhere.
Ww2 generation: bad ass ,smart
Boomers: ( why)
Gen x: ( we are kinda fuaked)
Millennials: ( we are fuaked )
Gen z : ( no hope )
Wow wasn’t expecting this to take the “stop eating avocado toast” route. CRINGE
We graduated into a recession. That has life long ramifications.
I dont agree with any of those arguments from that article. If you can’t manage to save when making 350k, its not the systems fault, its your own.
30% for housing… You are nuts
I live paycheck to paycheck but 40% of salary goes to taxes/401k/stock/healthcare etc. 25% is in savings and i live paycheck to paycheck on the remaining 35%.
I’m a master at my trade in a niche market 34 years old. And bro…. I don’t even gross 10k a month. Hahahaha save 10k a month.
I was born in 1999 which is often considered millennial but sometimes Gen Z. Anyway I graduated high school in 2019 when I was 19. And I didn’t go to collage and I don’t plan too. So im debt free and proud of it. Im 23 now.
Boomers idea of wealth: ” Ginormous house with big gardens, a large swimming pool.”
Millennial’s idea of wealth: ” Any old house regardless of lawn size.”
The more money I make, the more tax I need to pay and to save tax, more 401k needs to be saved, hence reducing the in-hand salary to peanuts.
Yep and they vote democratic so you get what you get
Millennials are all 🗑️
Simple answer, boomers and gen x cut the latter from under them and made it basically impossible for any younger generation to obtain the same success as they did. They’re the generations who kept getting laws passed so they can benefit while the rest of us suffer and in turn go out of their way to cause as much harm to us as possible and then ridicule us for not “succeeding” the way they did.
It’s the coffeee and the like. It spirals out for so many people if your convenience purchasing and owe money on a credit card your committing financial suicide and it doesn’t matter how much you make.