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Millennials are defined as adults between the ages of 23 and 39 years old in 2020.
The above graph depicts the results of a multi-year survey as published by the US Census that studied the average net worth of average US home owners and renters.
You clearly see that the average US homeowner gets ahead of the average US renter by more than $220,000 as of 2016. While the net worth of the average renter has even decreased from $5,400 in 2010 to $5,000 in 2016. Isn't that the truth? Isn't that what you actually feel in your pockets?
The brighter side of this is that just by becoming a homeowner your net worth will start increasing due to two economical forces:
1) You stop paying your Landlord, instead you pay yourself
2) Market appreciation due to your local economy
In a way, owning a home is like having a retirement plan of your own where you won't have to pay taxes when you sell it one day.
Coming back to the millennial group, this age group has the most challenges right now getting ahead with their financial futures. One of the most pressing issues for them is the large student debt that they carry but they have also experienced profound set backs such as the 2008 financial recession and now, more recently, COVID19.
But even without these challenges, there are still some subtle financial challenges that are working against the general population. I am referring to the increasing re-distribution to wealth favoring corporations at the expense of the middle class Americans. See the chart below.
As recorded by the Federal Reserve, while corporate profits increased their share of the US economy, employees' wages have been in a steady decline even from 1970. No wonder why our parents had it better than us.
What this means to any millennial is that the American dream of working a job from 8 to 5pm and retire comfortably is evaporating slowly but surely.
There is a better way to increase your net worth: Own your own home.
If you have been renting for 3 years or more, you don't have to save up 20% for downpayment. We can help you get a government grant to cover your down payment to start your home ownership as soon as possible.
