There is no debate that many young Americans are struggling with unaffordable housing and rental markets. This has made the wealth-building process a much more challenging and daunting task for young people than for previous generations. This article will be dedicated to highlighting some of the challenges that young people face and proposing actionable solutions that most young people are implementing to make the process easier.

### Young people are living at home for longer

Most people are cutting back on expenses, but young people, who can, have chosen to cut back on their biggest expense, housing. Staying with parents for longer has become the norm. A [Pew Research study](https://www.pewresearch.org/short-reads/2020/09/04/a-majority-of-young-adults-in-the-u-s-live-with-their-parents-for-the-first-time-since-the-great-depression/#:~:text=In%20July%2C%2052%25%20of%20young,of%202.6%20million%20from%20February.) from 2020 found that 52% of Americans aged 18-27 are living with their parents out of necessity. Most major cities have had an expansion of “luxury” apartment complexes that command premium prices, and little to no expansion in affordable housing. Young people are opting out of living in "IKEA-renovated" apartment complexes and would rather give their rent money to mom and dad instead of corporate landlords. 

### Young people seek information to expand their financial literacy

The internet has become a great equalizer of information. Financial knowledge that was gatekept in the past has become more widely known. Young workers are using the time at home with parents to save and invest more than their boomer counterparts. 

### Young people are more conscious of spending

Many young people have figured out more doesn’t mean better and have opted out of expensive hobbies and turned to cheaper alternatives. Running clubs, hiking, biking, hangouts with friends and other recreational activities have taken the place of shopping and going to bars for many. 

### Young people are working multiple jobs

Gig work has become a side hustle for a lot of young people. People are taking up doordashing, ubering, freelancing, and other ventures on weekends and after their full time job. This combined with the ability to live at home has allowed them to make more than they would have just working a full time job. 

### Young people are living with multiple roommates
	
For some young people, moving in with parents isn’t an option. In HCOL (high cost of living) areas like New York and San Francisco, it’s especially normal to live with multiple roommates in order to reduce living expenses. As nationwide housing costs get more expensive, young people are living with more roommates for longer periods of time.

### Young people are thinking twice about going into debt

It’s no secret that college has gotten insanely expensive. More young people are deciding whether or not taking on student loans is right for them. With a bachelor's degree becoming commoditized and more and more companies looking for specialized employees in our technology reliance culture, young people are seeking certifications or learning a trade. 

### What this means

The housing affordability crisis coupled with an insurmountable mountain of student debt has led young people to relentlessly cut costs and work harder and longer hours. Data backs up that most [young workers are making less](https://www.cnbc.com/2024/04/03/survey-adults-say-theyre-doing-worse-financially-than-their-parents.html#:~:text=The%20share%20of%20people%20who,according%20to%20Opportunity%20Insights%20research.) on an inflation-adjusted basis than their parents were at the same age as them. With housing prices at a multiple of 8x the median household income, young people are delaying their move-out date and postponing having kids. The younger generation is showing resilience and are making sacrifices in order to stay financially afloat. 

![OriginalLogoInvestantTHIN.png](https://res.cloudinary.com/dnmr13rcg/image/upload/v1701147178/Original_Logo_Investant_THIN_1c2347d933.png)


Young people are faced with unaffordable home prices, high rents, and struggle to enjoy the same quality of life as their parents. Here's what they are doing to get by. 

Housing Affordability's Impact on Young Americans

A Career Plan is essentially captured in the statement, "I want to become X, and I will do Y to achieve this." It's not just a dream, but a clear step by step plan to reach a goal - a career goal. The average person will spend 1/3 of their life at work ([Gettysburg College](https://www.gettysburg.edu/news/stories?id=79db7b34-630c-4f49-ad32-4ab9ea48e72b)). Our work life will influence the energy we bring back to our homes which will influence the energy we bring back to work the next day. It is important we are taking steps everyday to move towards our career and life goals - which often go hand-in-hand.

>I want to become X, and I will do Y to achieve this.

### A Sense Of Security

It is relieving to know that you are on the right path to get where you are going. Have you ever had to drive across the country with not even a map to help navigate? Imagine the anxiety in that situation! Navigating a career is likewise a similar feeling if you do not have a clear map to know your destination and exactly how to get there.

By having this map, we can ensure every step is a step on the right path and audit frequently that we are still on track for our goals. It allows us to make changes when needed as well - because life happens, and if we go off course we'll know how to find our way back!

### What I Want To Be When I Grow Up

The question "What do you want to be when you grow up?" isn't just for children. As adults, we should continually ask ourselves this question to ensure we're moving in a direction that aligns with our passions and values. This section of your career plan should articulate your ultimate professional goal. It's not just about a job title, but about the impact you want to make, the skills you want to master, and the legacy you want to leave.

Consider not just the role you want to have, but the type of person you want to become professionally. This vision will serve as your North Star, guiding all other decisions in your career plan.

![investant-leadership-boats-stock-photo.jpg](https://res.cloudinary.com/dnmr13rcg/image/upload/v1721537640/investant_leadership_boats_stock_photo_8986845d59.jpg)

### Where Am I now?

Before charting a course to your destination, it's crucial to understand your starting point. This section of your career plan should involve a honest self-assessment of your current skills, experiences, and circumstances. What are your strengths and weaknesses? What unique experiences or perspectives do you bring to the table? What resources do you have at your disposal?

Understanding where you are now also involves recognizing any gaps between your current position and your ultimate goal. This gap analysis will help you identify the specific steps you need to take to bridge the divide between your present and your desired future.

### How Do I Get There?

**This is the ideal section to bring up with your current manager as they may be able to provide you with growth opportunities that align with your goal.**

This section is where you outline the specific steps you'll take to move from where you are now to where you want to be. Break down your ultimate goal into smaller, manageable milestones. What skills do you need to acquire? What experiences would be valuable? Are there certain positions or roles that could serve as stepping stones?

Be as specific as possible in this section. Instead of vague goals like "improve leadership skills," set concrete objectives like "complete a leadership training course by the end of the year" or "take on a team lead role in the next project." Remember, the more specific and measurable your steps are, the easier it will be to track your progress and stay motivated.

### How To Course Correct When Needed

A career plan isn't set in stone; it's a living document that should evolve as you grow and as circumstances change. This section should outline how you'll regularly review and adjust your plan. Set specific times for review - perhaps quarterly or bi-annually - where you'll assess your progress and make necessary adjustments.

>A mechanism for self-assessment.

Consider potential obstacles or changes that might require you to pivot. How will you handle setbacks? What signs will indicate that you might need to alter your course? By anticipating potential challenges and having a strategy for adapting, you'll be better prepared to navigate the inevitable twists and turns of your career journey.

![OriginalLogoInvestantTHIN.png](https://res.cloudinary.com/dnmr13rcg/image/upload/v1701147178/Original_Logo_Investant_THIN_1c2347d933.png)

What does a good career plan look like? Explore how to craft and refine your own.

Making A Career Plan

Personal finance is made out to be more complicated than it actually is. If you work to earn, spend less than you make, and invest the difference you are well on your way to financial independence. Scott Galloway (professor of marketing at NYU) creates a good equation for wealth:

>**Focus + (Stoicism x Time x Diversification)**

The **focus** portion of this equation is (for most people) in the form of a career. By focusing on your career and professional growth you will earn a paycheck, which can then be used to invest in assets that generate additional income. Unless you were born rich right out of the gate, most of us earn money through our careers. 

The **stoicism** portion of the wealth equation is just as important as focus. If you fall into any societal trap _(lifestyle creep, comparisons, keeping up with the joneses, etc.)_ you will sabotage yourself and end up in a worse position than if you just cared less about what other people thought of you. This is a very real risk. Data shows that 36% of earners making $200k+ per year are living paycheck to paycheck in the U.S. If your expectations increase faster than your income, it doesn’t matter how much you make. Your relationship between production and consumption will determine how wealthy you become, not your income. 

**Time** is the most valuable resource on the planet. Lose money? You can always earn it back. Squander time? It’s gone forever. Rich is a relative term. One persons idea of rich may be to have a fancy sports car, large house, lake house, and flying private. Whereas another person may think being able to cover their rent passively using investments is the coolest thing in the world. You define what you value. Not society. 

**Diversification** is incredibly important. Since it’s impossible to predict where the stock market will be 5 years, 10 years, 30 years from now, we want to remove as much [unsystematic risk](https://www.investopedia.com/terms/u/unsystematicrisk.asp) as possible. This can be done through diversification. The old saying “don’t put all of your eggs in one basket” illustrates the importance of diversification. Making all your money “in the form of a job” is not diversified. We want to spread out our risk so that we can sustain ourselves in the case of a job-loss. 

### Everything has a price

It’s important to know yourself extremely well. There are a million different paths that you can take in life, and you need to have a good understanding on what you do, and more importantly what you don’t want in your life. Everyone seems to want to earn more money, but very few people highlight the price you pay in terms of stress, anxiety, more student debt, more responsibility, and low job security. This tradeoff has led many people to work harder and longer hours for a prize that they later determined wasn’t all that important to begin with. 

### Financial Base
	
New graduates and regular people tend to build wealth slowly, and over long stretches of time. The average financial picture usually looks a little like this: 


>An IRA (Roth for young people, Traditional for some older individuals), a 401k plan offered through some companies (pensions in rare cases), home equity, potentially an HSA, and individual brokerage accounts. 

The 26-year old tech bro that gets rich from employee stock options at a startup after an [IPO](https://www.investopedia.com/terms/i/ipo.asp) is a rarity, not the norm.

### What does financial success look like?

Have little to no debt? Make more than you spend each month? Have enough to save and invest the difference and maintain an emergency fund? In that case, you are in good shape! 

Try and ignore the noise of influencers and other hustle culture promoters who treat life as a “race” that has to be won. They may have a lot of money from misleading people, but you can take pride in the fact that you aren’t nearly as obnoxious and vain as them!

![OriginalLogoInvestantTHIN.png](https://res.cloudinary.com/dnmr13rcg/image/upload/v1701147178/Original_Logo_Investant_THIN_1c2347d933.png)

Setting up a financial base and exploring important habits to create lasting security for you and your family. 