What's up guys, it's graham here, so you know how they say that millennials are lazy, self-centered entitled and unreliable. Well, if that wasn't enough, we now got to add one more to the list. Millennials are also broke because, according to a recent study, millennials are running out of time to build wealth, owning just 80 percent of the wealth that their parents had at the same age and just wait. This gets worse.

Millennials are taking on more debt, fewer of them own a home. A smaller amount are investing and despite the stock market having skyrocketed over this last year, millennials owned just five percent of all u.s wealth, meaning they're, quickly falling behind and leaving a lot of money on the table that could have been easily avoided. Had they just watched this video instead? So let's talk about exactly what's going on some of these frightening statistics shared by bloomberg, the biggest mistakes millennials are making and then, most importantly, how you can avoid these mistakes to come out ahead, profitable. Well, really, quick before we start, if you enjoy this content and find it helpful in any way, would help me out tremendously if you obliterated that, like button for the youtube algorithm, it seriously helps out my channel a lot and it actually does make a big difference.

Plus, as a token of my appreciation here is a picture of a baby blue tang. So thank you guys so much and also big, thank you to otis for sponsoring this video, but more on that later, alright. So here's what we're up against as of right now, millennials make up about 35 of the workforce, with 56 million of us out there working away making money reminding people to get their free stock down below in the description and building wealth. Now some of this makes sense that millennials own less wealth because they haven't been in the workforce for as long as other generations - they're not yet at their full earning potential, and they haven't had enough time for their investments to grow.

But unfortunately, there's a problem with that logic: cnbc reports that in 1989, when baby boomers were on the same age as millennials are today they controlled 21 of the nation's wealth, which is almost five times higher than millennials owned today. So evidently, there's a growing disconnect between generations in terms of how much money they're able to save and how much money they're able to invest. That makes this problem so much worse, and here's why that is the first reason cited here was student loan debt on average, the cost of education has risen 65 over the last 10 years. Alongside that, wage growth on average has only grown 26 in the last 10 years.

That means when you account for inflation. The cost of education has gone up 54, while income, on the other hand, has only gone up six and a half percent. The main issue i see is that we have a society that encourages getting a college degree as the safe way to be successful and make money, and we have so many parents pressuring us to get a college degree, because that is what's worked for them. In the past, just look at the statistics, because these don't lie in 1970, just 16 percent of people had a college degree or higher, and today nearly 40 percent of millennials in the workforce have a bachelor's degree.

That means that back then not only was college considerably. Less expensive than it is today, but it was also far more exclusive and demanded a much higher salary. This causes millennials to start out their career in debt, with less money that they could save and invest, and so because of that they own less wealth than every other generation. But then we go on to the second reason and that's that millennials are just not investing.

Now i know i'm preaching to the choir here and chances are if you're, watching this channel you're already part of an elite group of personal finance, enthusiasts who's, naturally interested in building your wealth. But once you take a step back, you begin to realize that you are not the average. In fact, it was found that 43 of millennials are just straight up, not investing anything, and almost 50 of them are waiting to invest until they earn more money, which is a huge problem and not acceptable, at least under my watch. Unfortunately, though, it appears that one of the main issues behind all of this is really just a lack of education and the proper guidance in terms of how to invest, and that was very obvious by reading through some of these reasons.

So let's go ahead and debunk each of these one by one and in the next three minutes, you'll understand 95 of investing, which is unfortunate that none of this stuff is taught in schools. But at least we have youtube so first 45 say that they don't have money to invest. The truth is money is not necessarily the most important component of investing, but instead it's time the longer you keep your money invested, the more time it has to grow. For example, if you invest a hundred dollars at the age of 40 and you average an eight percent return by the time, you're 60 it'll be worth 466 dollars now, of course, that's not bad, but if you had invested that same 100 at the age of 30, Instead, well now it would be worth a thousand dollars by the age of 60 and if you invested that same hundred dollars at the age of 20, it's now worth two thousand dollars by the age of sixty.

So by that logic, it's a lot better to invest a little bit of money now than a lot more money later, because your money now is going to be worth way more. If you just give it time now. Second, 16 say that they simply don't want to invest and to those people i say: what's the alternative, if you really have zero interest to invest, that's okay, but then you got ta pick between a lesser of two evils. Would you rather invest a small portion of your income now, or would you rather be in a situation where you're entirely reliant on another paycheck to keep yourself afloat, you're gon na find that job security comes and goes and if you ever want to be in a Position where your investments can pay you to do all the things you enjoy like, i guess not, invest, then investing becomes a necessary component and it's a lot easier to start now than postpone it for later.

A third 12 say that they don't know how to invest, and this one is really easy. Go ahead and sign up for any free stock trading account like public down below in the description that will give you a free stock worth all the way up to 70. Just for signing up and then throw all of your money in a broad index fund that tracks a variety of stocks like the s p, 500, and that's it. I would say for probably 95 of investors, if you just did that you would be set, and that should encompass almost everything that you would need now.

Fourth, another 12 said that they were afraid of losing money. Now, here's the thing short term anything could happen and yeah chances are, you might lose some money, but the longer you invest, the less likely you are to lose and when you're investing over a 10 to 20 year time horizon the chance of you losing money is Pretty much non-existent, for example, the s p 500 has never once produced a negative result over a 20-year period ever compare that to a guaranteed loss, just holding your money in cash whittling away to inflation, so between the two investing is by far the safer option, even Though, in the short term, you might lose some money, then fifth, ten percent did not trust the stock market. I was actually really surprised about this, so i looked into it further and one of the biggest reasons for distrust was that they didn't understand how it works, along with a media narrative, that it only benefits the wealthy and doesn't portray the economy. Sure stocks could be manipulated, citadel and there's a lot that could be open to interpretation, but confusion could be solved by education and by realizing that the stock market covers a lot more than just hedge funds.

It can benefit everybody, you're gon na, be a lot more likely to trust it and, lastly, number six: six percent said that they didn't have the time you could literally sign up for any free stock trading brokerage out there invest in a total stock market index fund And then set it to automatically reinvest a certain amount from your account every single month. Investing could really be as hands-off as you want it to be, and if you do it right, you're going to be spending more time, brushing your teeth than you will tinkering with investments. But speaking of investing, we're gon na be going a little bit off topic here. But trust me it's interesting.

I just recently learned that high net worth individuals invest about five percent of their portfolio into collectibles and uh. You know i got ta say i'm a bit of a collectible fanatic myself, like i bought the 2005 ford gt as an alternative asset. I own two first edition gyarados's and i have an uncut sheet of fossil pokemon cards, but sometimes when it comes to buying stuff. Like this, there are things that i would love to have, but it's just impractical for me to spend all that money on it, it's out of reach or it's really hard to find.

But that is where our video sponsored today otis comes to the rescue they're like a stock market for cultural assets, where almost anyone could buy and sell shares of hundreds of rare collectibles, sneakers and art their app lets. You buy fractional shares the most collectible items. You could think of and you could earn a potential return by selling your shares to other members on the platform or, if otis sells one of the underlying assets that you invested in for more than what you paid. They also give you the information that you need to make a smart investment from financials all the way to trading stats.

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So if you're interested sign up for otis for free with the link in my description and get your first share free when you fund your account and now with that said, let's get back to the video alright. So now we got the third reason why millennials are so far behind and that would be home ownership. So typically, homeownership has been the largest contributor to building wealth. That's because over time, homes generally go up in value.

Paying a mortgage acts like a for savings account and that in turn builds your net worth. But millennials, however, have been eight percent less likely to buy real estate than previous generations, and, according to these statistics, it's for a few reasons. The first one being rising home prices, it's said that millennials are spending a median price of 328 thousand dollars for a home, while baby boomers only had to spend 216 000 adjusted for inflation in 1989.. Because of that, nearly a fifth of millennials said that they plan to rent forever and of the millennials who do plan to buy a house.

63 of them say they have nothing saved up for a down payment. The second, we also got increased student loan debt. Like i mentioned earlier, tuition is going up, wages are going down and even if you do have a job you're making less money comparatively to other generations. Now, even though there are some benefits to getting a college degree and it can be a prerequisite for getting a job in the first place, it's certainly becoming a lot more common and therefore less impactful to boost your salary.

Studies have shown that the value of a college degree really seems to have peaked in the late 1990s and since then it's been a slow decline. Given the skyrocketing cost of education, the third speaking of making less well millennials are making less money. Surprisingly, 62 percent of millennials say that they're living paycheck to paycheck and overall they're, making 20 less than baby boomers did at the same age. That means today we have to be more careful than ever to seriously evaluate the benefits of getting a college degree and whether or not it's worth it for the job, you want to take most likely less expensive options.

Trade schools or community colleges would be a much better fit than pouring money into a private, four-year education, but as it is right now, more money spent on education combined with lower wages, means less money that could be spent building up your net worth. Not to mention that doesn't even begin to take into consideration what's happening now with skyrocketing home prices and record low inventory, so millennials, unfortunately, are not making enough to bridge that gap, and that then brings us to the final straw and that would be millennial net worth This study found that typical baby boomers had 113 000 in today's money in wealth in 1989, when they were in their early 40s. On the other hand, recently older millennials had a net worth of just 91 000 in 2019.. In fact, if we look at averages across the board, the average millennial net worth is just 8 000.

Even crazier is that this is not because millennials are going out there spending money on frivolous expenses, but instead the fact that millennials were spending 17 of their income on fixed costs like groceries, utilities and housing in 2017, compared with just 12 percent in 1997.. Even though we just covered the aspect of home ownership, the reality is millennials are not investing enough money to participate in the markets, and much of this is due to the fact that the cost of everything else is going up, which means less money is left over. Combined with a lack of financial education - and that brings us to where we are today so obviously, then what's the solution? Well, first, we should probably point this out because it's interesting but slow wage growth does not apply to the top 1 percent of earners. In fact, wages for this group went up 138 since 1979, while for some context the bottom.

Ninety percent of earners only saw a fifteen percent increase. Even more surprising was that the income for the top twenty percent of earners rose, thirteen hundred percent more than the lowest income tier between 2007 and 2017., and if you're curious how you could get one of these high-paying jobs too. According to linkedin, those industries include technology, health care and finance. So if you're, considering going back to school, switching careers or re-educating yourself in a different field, picking something in demand and hard to replace should ensure that you make more money overall long term.

I've also mentioned this one several times in other videos, but one of the best ways to make more money is by switching companies. There have been multiple studies done that show that people who switch their jobs every two to three years make on average of 50 percent. More than someone who stays at the same company and if you switch jobs just once, you could see an average of a 15 pay increase. It's also incredibly important to realize that all the income in the world is not going to help you.

If you don't consistently save and invest so that way, you're able to participate in the markets going up in value over time as it is now, income and wealth are really self-fulfilling, meaning the more money you make, the more money you invest and therefore the more money You end up making, which means the more money you can invest. Likewise, the opposite happens. When you don't have money, when you don't invest, you don't make as much, which means you don't have as much money left over to invest in the less money you make. It's.

So important to break that cycle and start investing as soon as you can, even if that means you cut back on extravagances, you change careers, you work a side hustle or you do anything you can just to get in the game and start investing consistently. So, given all of that information, that is why millennial wealth is at a record low, why millennials are running out of time and what you could do to help. Ultimately, it's all about investing consistently, but in order to get to that point, where you have leftover disposable income to invest it's about specializing in a field, that's in demand, where you're good at what you do and you're difficult to replace the job market also rewards talent, But it doesn't reward loyalty, so switching companies is often the best way to start making more money while sharpening your skills. At the exact same time, you should also be very careful about where you go to college, how much you spend or even if you go to college, to begin with and also take a very close look at trade schools, because these could often pay you just as Much if not way more, depending on what you do so, even though some of this might come off as disappointing, it doesn't mean that you can't do anything about it, and this is a solid chance to turn things around.

Take a proactive approach and invest and if you could do that along with smashing the like button for the youtube algorithm, it will absolutely pay off in the future. So with that said, you guys thank you so much for watching. I really appreciate it as always make sure to destroy the subscribe button, and the notification bell also feel free to add me on instagram, i posted pretty much daily. So if you want to be a part of it, there feel free to add me there.

As on my second channel, the gram stefan show i post there every single day - i'm not posting here. So if you want to see a brand new video for me every single day, make sure to add yourself to that. And lastly, if you want a completely free stock, now worth all the way up to 70 dollars, use the link down below in the description and sign up for public plus, i'm posting all of my own stock trades on there. So if you want to see exactly what i'm buying feel free to follow me on that enjoy, thank you so much for watching and until next time.