Many Millennials Don’t Realize Their Full Potential

Millennials Guide to Income Generation, Wealth Preservation, and Career Advancement

Millennials making $200K per year? It’s all possible

Millennials are the micro-generation who has come of age in the most tumultuous financial times of recent history. Not only have they seen their parents’ and grandparents’ 401Ks vanish like magic carpet rides during a New York City blackout, but they also find themselves living in a world where job security and unemployment benefits no longer exist. Millennials find themselves struggling to find meaningful work that is economically stable or even remotely affordable.

Although Millennials make up half of the workforce, they are lampooned and mocked with the worst insult possible: underemployed. Underemployed is a relatively new term. It’s been around since the mid-2000s but has become part of the lexicon in just the past few years.

Over the last decade, we have seen a shift in how Millennials are being perceived by older generations. The Millennial “casualty” is not a large, broad-based phenomenon that exists across all economic levels and socioeconomic groups. The common thread between Millennials is that they are all struggling to find work that provides economic stability, income, and growth.

The Bureau of Labor Statistics, summarized in a recent Bloomberg article, found that Americans aged 20–24 years old have the highest unemployment rate out of all age groups. The next highest unemployment rates were for teenagers aged 16–19 years old and workers aged 25–29 years old. Millennials aged 18–19 years old showed the lowest participation rate in the workforce of any age group. In fact, the youth unemployment rate for this age group is at an all-time high. The Bloomberg article also explained that Millennials now make up the largest percentage of underemployed workers (approximately 80 percent). These findings show that Millennials are not only struggling to find work but also struggle to find work that is economically stable or even remotely affordable.

Economically independent Millennials (EIM) are those who are no longer connected to their parents through a bread-winning job. They make their own decisions, create and build their own financial stability and rely on no one but themselves. EIMs have become the new “norm” in today’s economy, as they have been able to find a way to pursue the life that they want. The trick is finding work that “feels right.” This is not the same as maximizing income potential, but rather working a job that makes one feel fulfilled.

EIMs are generally categorized by their level of income generation, not by profession. Although one EIM’s career path could be vastly different from another’s, it is much easier to categorize and define the different levels of the EIM. EIMs are a unique micro-generation because they have different priorities and concerns than their Millennial predecessors. The general mindset of EIMs is that building wealth and becoming financially independent is a priority over maximizing income potential — therefore, it is wise to consider alternative sources of income generation when trying to define what an economically independent Millennial looks like.

Income Generation

EIMs are those who are either employed or seeking employment. The aim is to not be an “underemployed Millennial,” which is a topic for another time.

When asked what income generation looks like, EIMs fall into two categories;

1) Job/Career Path and 2) Contractor/Freelance Roles.

Job/Career Path: Job/Career Paths are generally associated with traditional roles, although there are exceptions. Those who have found employment in what could be deemed a traditional role generally have done so because of their passion for the job, field, or work. These individuals love their work and don’t think twice about going to work each day. The extra income is simply a bonus. Although this is not a typical Millennial mindset, these individuals have prioritized and have focused on becoming economically independent. EIMs who fall under Job/Career Path are categorized by their income level.

Level 1: Entry-Level or Part-Time Position < $30K/Year

• These positions are often associated with either internships or entry-level positions. These positions are typically given to fresh college graduates or new high school graduates looking to gain experience and begin building a resume. These positions are generally long-term and can lead to a career in the industry. The majority of these individuals have student debt and bills that need to be paid, which means that finding alternative income sources is also important.

Level 2: Mid-Range Position > $30K/Year

• These positions usually represent the median salary for many industries and typically offer benefits such as health insurance, 401K matching, and paid time off. These individuals are often doing work that they love or at least enjoying the daily grind of their jobs. After a certain period of time, these individuals can find themselves moving into the Level 1 category.

Level 3: High-End Position > $80K/Year

• These positions are often reserved for the highest caliber and most sought-after personnel. These positions are often limited and require a significant commitment from the employee, although salary can be significantly higher than other Level 2 positions. These individuals can also experience higher levels of job satisfaction, but many are willing to move on to other positions with better pay in the hopes of being able to work with a company that they truly love.

Contractor/Freelance Roles: Contractor/Freelance Roles are the equivalent of Job/Career Paths, but for those who have found work in the services industry. These individuals are often associated with companies that are small or start-up businesses and typically offer flexibility and part-time positions. These positions are often short-term, last-minute, and have irregular hours. These roles are also often employees of larger companies who offer independent contractor positions. For example, a company may outsource its bookkeeping to an outside company in order to save money on overhead costs. This has become more common as businesses look for ways to cut costs without decreasing the quality of their product. Some of the benefits of being an independent contractor are that there is less paperwork, it allows the business to scale their workforce at a lower cost and it is usually less expensive than full-time employment.

EIMs are those who are economically independent but are not necessarily financially secure. The goal is to be able to live wherever and however we want, so long as we have enough money for food, shelter, clothing, and transportation. The bottom line for EIMs is that we can make our own money. Having enough money for basic needs is the standard.

Level 1: Low-Middle Income — Steady Income < $30K/Year

• Although individuals in this category clearly do not make a huge amount of money, they are able to afford the basics and are able to live comfortably within their means. Many EIMs may have student loan debt and some may also have credit card debt. They may also have car payments or other regular monthly bills. Rarely do EIMs live paycheck to paycheck, but rather have a nice nest egg for emergencies. They may have some money in the bank for traveling or for those rainy days when things don’t go their way.

Level 2: Middle-Income — Steady Income > $30K/Year

• Individuals in this category are able to save and invest some money each month. They may have an emergency fund of a few thousand dollars (or more). They may have a credit card with good payment history. They do not necessarily have a retirement plan, but they may be able to put money away for retirement income or at least keep some of their monthly income in the form of a savings account or 401K.

The general mindset of EIMs is that accumulating wealth and becoming financially independent is a priority over maximizing income potential — therefore, it is wise to consider alternative sources of income generation when trying to define what an economically independent Millennial looks like.

Summarize

There are many options when it comes to generating income. There is not one single formula. There is no one-size-fits-all when it comes to generating income in the 21st century. The various challenges that every generation faces and experiences are not going to change anytime soon. Let’s look at some of the challenges associated with Generation Y, or Millennials.

Millennials are generally creative and entrepreneurial compared to other generations. Our generation is highly educated and has a high level of technological proficiency. However, we also have a lot of debt from our education loans, student loans, credit card debt, and consumer debt in general. Due to our generation’s high level of personal debt, many of us must find alternative sources of revenue and income in order to be financially independent.

There are various resources available online to help individuals brainstorm new sources of revenue and income. This can be a lot like a treasure hunt when deciding where to look for new ways to generate income, but it is definitely worth the effort. The most obvious starting point would be a local bartering exchange or a local community organization that offers skill in exchange for goods or services.

The way we define who is “Economically Independent” is a fluid process. We are constantly adapting and changing in our long-term quests for success, happiness, and continued peace of mind.

“EIM” can also be used in a negative context as an adjective to describe people who are just barely getting by, living week to week. It can also be used as an adjective to describe someone that is not financially independent or free-spirited.

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J.D Rehbein-Wrightstein founder of The Savytech articles is a writer who loves to help people discover their hidden potential as well as their true purpose in life. He inspires and educates people on living an awesome life with inspiring articles. Connect with him on Twitter for more!