Millennial Investors Are Becoming Millionaires Fast: 4 Strategies They’re Using

Millennials’ wealthiness has been booming. According to Federal Reserve data, millennials’ full nett worthy has astir quadrupled since 2019, expanding from $4.54 trillion successful 2019 to $16.26 trillion successful 2024.

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This summation successful wealthiness is peculiarly notable for millennial investors. A Wealthfront survey recovered that for their millennial investing clients, the proportionality of millionaires accrued by 144% implicit the past 5 years. This is simply a overmuch larger summation than different generations experienced — the proportionality of Gen X millionaires lone accrued by 31% implicit the aforesaid clip period, and it decreased among babe boomers.

Here are the strategies millennial investors person been utilizing to go millionaires.

The cardinal origin driving millennials’ fiscal occurrence is their attack to investing.

“When comparing plus allocations crossed generations, information shows that millennials are holding a larger information of their wealthiness successful equities than older generations were astatine the aforesaid age,” said David Fortunato, CEO of Wealthfront. “By taking vantage of investments that connection higher hazard adjusted returns, millennials person been capable to accumulate wealthiness faster than erstwhile generations.”

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Millennials are besides redeeming much aggressively than anterior generations.

“Data shows that their savings complaint is importantly higher erstwhile compared with the savings complaint of older generations,” Fortunato said. “This is simply a inclination we expect to proceed arsenic millennials beforehand successful their careers and proceed gathering wealth.”

Millennials’ lodging wealthiness grew by $2.5 trillion betwixt 2020 and 2024, The Wall Street Journal reported.

“Housing is the biggest point successful astir budgets, and whether those funds are utilized to bargain oregon rent a location tin person a ample interaction connected semipermanent fiscal outcomes,” Fortunato said. “While renting is typically little costly connected a monthly basis, buying a location offers a fig of fiscal benefits that tin assistance millennials scope their fiscal goals.

“Crucially, owe payments lend to owning a semipermanent plus that has historically accrued implicit time,” helium continued. “Recent increases successful location values person already benefited millennials successful conscionable the past fewer years.”

Among Wealthfront’s millennial clients, the mean location worth accrued by much than 40% betwixt March 2020 and February 2025.