Millennial Stealth Wealth And Why You Have To Start Now
Millennial Stealth Wealth Right Under Your Nose
Millennial Stealth Wealth is something that most people in our generation don’t think about to often. Most are worried about student loans, new car payments and figuring out what needs to get done so they can get off work early on Friday. Creating stealth wealth is really easy if you know the right way to go about it.
What Is Stealth Wealth?
You have a friend who lives in the cool apartment, drives the nice car, and lets you know exactly how much he makes. Sounds flashy and not stealthy at all, you would be right in that assumption.
Now you have another friend who drives the same car since you’ve known him. It’s nice because he keeps it that way but its nothing to write home about. He has a job, you probably know what he does, and if you wanted to figure out what he makes you could. There’s really no reason why though because he lives in a normal apartment and dresses just like everyone else.
What is the difference between these two people? One gets his self-worth from others and things and isn’t saving much. You can do the math, since you know exactly how much he makes, and how much everything cost. He’s already told you, twice. The other is going to have $100,000+ by the time that they are 30 and you’d never know it.
How To Get Into The Mindset Of Stealth Wealth
I use to play a video game with a strong economic market. At first I would work work work and save until I could buy something flashy but it was all an illusion. When I wanted to do something else I had to sell the item. Then I realized having the ability to buy something is just as rewarding as actually doing it. I started to save, buy low and sell high. Created a vast network of workings to integrate a vertical monopoly and eventually amassed a fortune of in-game currency when I was 14.
Did I go and buy a bunch of stuff just because I could and let everyone know how much I had made? Not at all, most people I played with thought I was just a regular person with little to no money just like them. It did allow me to finance what I NEEDED though.
Being able to spend $3,000 a month on a 1 bedroom apartment and doing it are two VERY different things. Living below your means and staying away from a “luxurious” lifestyle allows you to save the difference. Getting a two bedroom and paying $1,000 each saves you $2,000 a month.
Want to know what that adds up to if you invest it? $155,000 by 30 and $9,100,000 by the age of 65. If that isn’t mind-blowing enough you may want to check to make sure you have a pulse. Are most people living in a $3,000 a month apartment? No, but everyone and I mean EVERYONE is overspending somewhere. $100/month invested from 25 to 65 will net you a $1,000,000. So even on the smaller side of the scale you can see that it adds up.
Saving Your First $10,000
The first thing you have to do is talk to who you work for and make sure you are hitting that Company Match. A company match is a tax write off for the company so they are usually happy to do it. For you though they are matching what you put into your 401k up to a certain percentage. Sometimes that number is 1% other times I have seen it up to 8%! The average is going to be close to 3% and that turns into a 3% raise for you instantly if you aren’t contributing yet.
Speak with your HR as they will be the ones working with you on this. $1,000 a year invested at age 23 will get you to $10,000 at current return rates before 29. $2.73 a day that is all it takes. That is less than a cup of coffee. You won’t even notice that it’s missing from your paycheck after two months.
Secondly, start paying in cash. Making a budget is easy, sticking to it is a little harder when you are swiping plastic. Is it a pain to carry around cash? Not really, is it painful to watch as $100 bills magically disappear as you use them for food and trivial purchases you didn’t realize you were making? Definitely.
What Money Really Is
As your Millennial Stealth Wealth continues to grow you realize that money is a tool. Not something that should be chased after in itself. Whats wrong with having one nice watch versus a dozen? Why have 3000 square feet when 1000 is more than enough for one person? Put that money to good use and start your Millennial Stealth Wealth nest egg. So that when something truly great comes along, your future, you’ll be ready.