The Ten Most Powerful Money Habits of Millennial Millionaires

Time to understand the Millennial Millionaire Habits.

According to a 2019 report from Coldwell Banker Global Luxury and WealthEngine, there are approximately 618,000 millennial millionaires in the United States. This number makes up approximately 2 percent of the total US millionaire population and 0.2 percent of the general US population.

The typical millennial millionaire has a net worth ranging from $1 million to $2.49 million. Real Estate (RE) makes up a healthy position in their portfolio. As such, wealth millennials view RE as a key way to build cash flow, leverage debt, and build wealth. While the average millennial millionaire owns three properties, they generally live near the coast in dense metropolitan hubs. These ten locations include California, New York, Florida, Massachusetts, Texas, Washington, New Jersey, Virginia, Illinois, and Maryland.

Beyond massive six-figure inheritances, sustaining wealth will come down to their money habits.

Table of Contents

Who are the typical millennials?

To begin with, the term millennial (Generation Y or Gen Y), describes a person born between 1981 and 1996. While you will find that sources differ +/- 2 years, what it boils down to is mannerism and Mores.

For example, millennials tend to shop for convenience. Eating out blew up in the early 200s as well as living for experiences such as travel. Additionally, they tend to stream and subscribe to delivery services. Most of this is furnished by consumer debt. Finally, the more left-leaning tend to exclusively live for social impact. Buying from socially responsible brands is of higher value. Gone are the luxury staples ie Rolex or Coco Chanel. The new in are exclusive and grassroots like Taflar bags.

In contrast, millennials are spending less on luxury cars, clothes, housing, and retirement than previous generations.

#1 Millionaire Habits Require that You Live Below Your Real Means

Avoid lifestyle inflation as income rises. Read “Understanding and Avoiding Lifestyle Creep: Tips and Strategies” by Tiffany Verbeck.
Build savings by spending less than you earn

#2 Establishing an emergency fund Just for Real Emergencies

Save 3-6 months’ worth of living expenses
Prevent going into debt for unexpected costs. Read “8 Tips to Avoid Debt” by Brianna McGurran

#3 Paying Down High Interest with a Debt Repayment Plan

Debt drains the capacity to save and invest. Read “6 steps to kick-start your debt repayment plan in 2024” by Megan DeMatteo
Focus on credit card and loan balances first

#4 Take Full Advantage of Employer Retirement Plans and the Additional Benefits

Contribute to 401(k) plans, especially if matched. Read “Top 10 reasons to contribute to a 401(k)” by Karen Roberts.
Time and compounding boost retirement account

#5 Millionaire Habits dictate that You Invest Early, Often, and Try Not to Panic

Start investing as soon as possible. Check out “Take 2 = When, Where, and How to Invest (Investing 101)” by the Money Guy Show
Make regular contributions part of your routine
Ride out short-term volatility
Don’t panic and sell when markets fall

#6 The Power of Debt Leveraging is part of the Millionaire Habits

Keep credit card balances low
Make payments on time each month
Check out “FICO Credit Scores Explained” by Rebecca Lake

#7 Review and Revise Your (Term) Life Insurance Needs Annually

Don’t underinsure or overpay for coverage
Right-size insurance policies for life, health, and disability
Read “Term Life vs. Whole Life Insurance: Key Differences and How To Choose”

#8 Automate Your Finances Where You Can

Removes the temptation to skip or “forget”
Set up automatic transfers to savings accounts
Use the resources in “Automate Your Finances Using Technology and Psychology” by Ramit Sethi