the biggest Financial mistake you will ever make was being born after 1980 homes are unaffordable
you will need a loan to go to college jobs are scarce and financial meltdowns are common if you
are a young person you have to ask yourself is it too late for me to ever get ahead financially
Millennials might be the unluckiest generation when it comes to economic growth Millennials are
having a really difficult time affording down payments for homes that's everybody and that is
according to a new study Bill Gates Steve Jobs Paul Allen Steve Ballmer Eric Schmidt and vinod
khoslaw all have some things in common these men are all Tech billionaires who were born in 1955.
according to the author and journalist Malcolm Gladwell this is no coincidence Gladwell argues
that Bill Gates wouldn't have founded Microsoft if he wasn't born at just the right time 1955 was
the right time to be born if you wanted to be a tech billionaire because you would have been the
right age in 1975 to capitalize on the personal computer Revolution right as it was beginning if
you were born after 1980 you were the right age to start paying five figures for college tuition six
figures for a basic home and entering the job market after the.com bust the global financial
crisis or the covid-19 pandemic gladwell's original inspiration for his book outliers
were New York corporate lawyers we take it for granted that there's this guy in New York who's
the corporate lawyer right I was just curious why is it all the same guy referring to the fact
that a surprising number of the most powerful and successful corporate lawyers in New York City have
almost the exact same biography Gladwell noticed that people ascribe Bill Gates success to being
really smart or really ambitious he noted that he knew a lot of people who are really smart and
really ambitious but not worth 60 billion dollars Tech billionaires are not the only group this
happens to a common and seemingly unavoidable problem with online role-playing games is that
long-term players who started the game when it first launched have had time to level up their
characters collect the best gear and build in-game fortunes the game developer needs new players to
join the game to grow their revenue base or at a minimum replace players that get bored with the
gaming camp cancel their subscriptions new players will be competing with existing players who have
more actual experience behind the keyboard and have higher level characters in the game that
new players just can't compete with nobody wants to spend their free time getting pwned on an old
video game so developers must choose one of two options option one reduce the gap between new
players and old players and risk making their most loyal customers angry or option 2 let the level
Gap grow so new players can't compete and let the game slowly die as it loses players back in
the real world we are being faced with exactly the same challenges and there are four big reasons why
young people may never get ahead financially the first reason is job opportunities working a job
is how most people build wealth even people who go on to be successful business owners normally get
their start in a professional career where they can build up skills gain connections and earn
enough money to go out on their own the average age of retirement has been slowly increasing in
America for a long time now and that isn't just affecting people at the end of their careers it's
also affecting young people if people have to work longer before retiring then there was less room at
the top of the corporate ladder for young people to move up into despite this Millennials make more
money than any other generation did at their age and they are less wealthy because to access most
high-paying jobs they have been forced to work in High Cost of Living cities here they are competing
with senior professionals at the penultimate years of their careers but still aren't quite ready to
retire yet these were people who were able to buy homes in these cities before they became
unaffordable when baby boomers were around the same age as Millennials are today they controlled
22 percent of the nation's wealth compared to just seven percent control by Millennials it's
a chicken and egg scenario older Generations need wealth to retire and younger Generations
need older generations to retire in order to build wealth nobody wins but young people lose
so it's time to learn how money Works to find out if you're a young person if it's too late for you
to ever get ahead financially or if you are born before 1980 to find out how long your children
will be living at home this week's lesson was sponsored by course careers if you want to get
ahead financially you are going to need to have an established career and there's no better way
to start that than with course careers if you want to start a career in the technology industry but
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a high income is not the only component to Building Wealth making more money makes it a
lot easier but if you invest diligently for the long term and generate good returns you can end
up much further ahead financially than someone that earns more than you but saves less here
younger Generations lose out again gladwell's 1955 Tech bro theory has some problems there
are lots of billionaires in the tech space that were born long after the 1960s Mark Zuckerberg
the Apparently human Overlord of meta is worth 97 billion dollars and he was born in 1984. outliers
always exist but Zuck is the exception that proves the rule Gates and Zuckerberg are the
financial Pinnacle of their Generations but Gage is still wealthier than Zuck after giving away 80
billion dollars more to Charities through his foundation if Gates had held on to his shares
in Microsoft in the same fashion that Zuck has held onto his shares in meta then Gates would
have a net worth of almost 700 billion dollars which would make him almost twice as wealthy
as musk I am not asking you to feel sorry for Zuck but the investment opportunity difference
exists for normal people from these two generations as well any investment made
into the market from someone who started their career in 1970 would have quickly compounded
as long as they didn't sell during big downturns the market average 11 returns over that time but
most analysts agree that the last century was exceptional for the market and future
returns are likely to be lower vangor's projected returns for equities over the next decade are 4.1
to 6.1 percent annually with median volatility of 17 Vanguard is an investment manager with a
financial interest in getting people into the market so their bearish Outlook would not have
been made without rigorous analysis the reason cited for the projected sluggish returns with
a cost of complying with new data security and environmental regulations greater barriers to
cross-border revenue and the lower spending power of young consumers that's right it's your own
fault for not spending enough if getting ahead financially means saving five hundred thousand
dollars over your 40-year career to fund a nice retirement it will be much harder if the analysts
are right so when investing just sixty dollars a month with 11 percent turns would have made five
hundred thousand dollars over forty years if you want to achieve the same amount with even the most
optimistic outlook on vanguard's projections of 6.1 percent you would need to invest 250 a month
for the same time for a lot of you it may be easy to find 250 a month in your budget but if that's
the case you probably wouldn't be satisfied with just five hundred thousand dollars in retirement
financial planners tell people to budget seventy percent of their income to use in retirement so if
you're someone who's earning a hundred thousand dollars a year at the end of your career budget
to spend seventy thousand dollars a year in retirement lower returns means you will need
more invested to generate that income while simultaneously making it harder to accumulate
with eleven percent returns someone would need six hundred and fifty thousand dollars to make
seventy thousand dollars a year making that over a 40-year career would require a monthly
investment of just seventy five dollars a month with six point one percent returns you would
need to invest one million one hundred and fifty thousand dollars to save that with those numbers
you would require a monthly investment of five hundred and seventy dollars if you are making
one hundred thousand dollars a year that's a big share of your budget and it assumes
that you will earn six figures for your entire career and never miss a contribution even once
that sobering realization is why more young people are flocking to Alternative Investments with the
promise of higher returns like cryptocurrencies nfts day trading and meme stocks financial fraud
is at an all-time high and younger investors are the ones being most affected even though they
are investing less to a lot of people it's worth the gamble when the alternative is a lifetime a
sacrifice just to afford a modest retirement this is not to talk anybody out of investing it's one
of the best tools you have to build wealth but it's irresponsible to suggest that cutting out
a daily coffee is going to make you rich without a high income investing is not going to make you
rich by itself if you have an average income today you are going to live a less comfortable life than
someone with an average income 40 years ago you will not be able to accidentally build wealth by
cutting out minor luxuries you're going to need a dedicated and fairly aggressive savings plan
which is the third reason why it might be too late for you to get ahead actually I can't put it off
any longer I need to talk about real estate prices forty percent of homes in America are
owned free and clear with no mortgage at the same time more Americans than ever don't think they
will ever be able to afford a home rental prices are up all over the country and across the world
existing homeowners are allowed to write off the interest on their home loan against their income
but renters are not allowed to do the same with their rent payments renters can also be kicked
out of their homes and they need to absorb the cost of moving cleaning and paying rent on two
properties for the overlap period unless they be homeless while waiting to move into a new place if
you are a renter this is all reducing your ability to save money money that you need to buy your own
place or do anything else to get ahead financially getting a down payment together can now take more
than a decade of dedicated Savings in High Cost of Living cities and for young people that are able
to overcome this hurdle the problems only just start there most people cannot purchase a home
in cash they need to get a home loan which means a place to live becomes a monthly expense people
buying housing now are going to be hit with high prices and high interest rates locking in a high
interest rate for 30 years is going to hurt people buying their first home because it can
be expensive to refinance if it comes back down the combination of high rates and High real estate
prices makes the monthly payment on the average two-bedroom apartment 20 times higher than it
was 40 years ago compared to the average salary at the time higher property prices also attract
higher property taxes there is not a single County in the country where someone making minimum wage
can afford to rent a two-bedroom apartment without experiencing financial difficulty purchasing the
average home and making payments will take more than 40 percent of the average salary which leaves
little money left over to save for anything else young Generations also have more opportunities to
spend during their earliest years where savings have the most time to compound over a lifetime
online shopping streaming services overpriced food delivery apps fast fashion and the subscription
occasion of everything wasn't a drain on the wallets of older Americans when they were starting
out there is good news which despite the temp stations Millennials are saving earlier than their
parents and their savings are higher portions of their income according to a study by magnify money
the average Millennial had their net worth doubled during the pandemic but they were still behind
older Generations at the same age they are also behind hitting Financial Milestones like buying
a house paying off student loans and saving for retirement younger Generations are struggling to
earn as much and their Investments probably won't perform as well over the long term and that's just
for people starting out if you want to know about the challenges that are going to face you at the
end of your career go and watch my video on why most people alive today will work until they
die if you want to get these videos a day early and get feel good reports like this delivered to
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