Generational wealth difference is out of proportion

Hi all

This post is not meant to attack our parents or grandparents, most of them did work hard and some were able to build up wealth deservingly.

What pisses me off is that the younger generation can try to work as hard as they want, they will not be able to build up wealth as the previous generations.

It used to be normal to work your full time hours on your minimum wage jobs (or higher if lucky) save up some money to make a downpayment for a house and pay off your house in a reasonable time frame.

Nowadays, you need to earn 5x the minimum wage and have a lifetime partner who earns as much as you to be able to settle somewhere.

Rental prices are ridiculous high, buying prices of properties are even more ridiculous.

Given that the traditional approach to making money and growing your wealth is no longer working, why is anyone surprised that we take the risk and invest our money in MaGiC InTeRnEt MoNeY?

Stay invested and always keep your eyes open for new opportunities! LFG!

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46 thoughts on “Generational wealth difference is out of proportion”

  1. Have boomer relatives who have openly stated to me that they are “essentially slumming it” while living in a five bedroom house, just the two of them (that they claimed was run down, but essentially just a little bit of wear and tear… ). My family and I live in a tiny apartment. They know this. They are seriously oblivious to what’s going on around them…

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  2. Pretty sure this current generation of graduates / young adults (Let’s say 25-35) have been confirmed to be the first generation that will be less wealthy than their parents in more than a century, in most developed countries.

    Boomers dropped the ball.

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  3. I’ll put it this way:

    I make **more money** than my parent’s did when they were my age.
    When they were my age, they **bought** a house that I **can’t buy today** with my money.
    I’m paying **more in rent** for a condo than they do in **mortgage** for the house.

    If you want your kids to live in their own property – you better start investing early in **your** lifetime.

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  4. What scares me most actually is the option to start a big war (ukraina) to refresh economical growth – like it has been many times before :/

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  5. The way I see it, there’s too much heavy leverage holding up this breakout, too many exchanges keeping $BTC held down due too the losses they’ll take with current orders in place. JMO.

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  6. This is something my dad doesn’t seem to grasp. My grandfather, my dad and I are all three self employed in construction.

    My grandfather had the best time. Tools were expensive but workers were plenty to be found and relatively cheap so while he worked 65 hours a week without ever taking a vacation, he was able to buy several houses he’d rent out. Until last year, his kids sold most of it off because of dementia. He could’ve been a lot better off if he invested more in quality tools. In his mind, buying tools was losing money.

    My dad bought more tools and had less staff. He then went out doing 70+ hour workweeks. As a kid we barely saw him, he even worked on sundays. He now owns two houses, two appartments and some project land to build a few more houses.

    I am working 55 hours a week and have 1 nice home but I don’t ever see myself getting a second one. We don’t have staff anymore, we are just no longer able to give anyone a living wage for hard, dirty work.

    I fear my kids won’t be able to buy their own home if they just do regular work.

    My dad still thinks that it’s easy to get a house “if you work hard and save”. He thinks my wife and me live large because we aren’t able to amass large sums of savings. He has no clue how much living a life costs..
    “But your monthly Netflix and Spotify subscription….” – yeah sure, those 30€ a month are gonna buy me a house one day..
    “But loans are super cheap” – yaeh and savings are depreciating faster than house prices are rising. Oh, I paid 12 times as much for my building land than him..

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  7. My son is a millennial and he didn’t want to waste spending a ton of money on a college degree that wouldn’t help him get a job, so he became a plumber trainee. In three years, he is close to making six figures. It is not like sitting at a desk watching youtube videos, it is hard work. But he will be buying a house within 2 years. And this is in Southern Calif. Like Polka said, I make more than my parents at the same age and the first house I bought was 10 times more expensive than the first house they bought. The more things change, the more they stay the same. Investing is one answer. Making great choices is another.

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  8. Our generation has been handed the short stick for sure, and is one of the reasons so many of use are flocking to crypto. We have a financial system in desperate need of overhaul, where certain people keep lining their own pockets.

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  9. No it’s possible to get ahead, you just need to be prepared to do a job no one else wants to do. I did an electrical apprenticeship, and have worked in underground mines. I’m hoping to start my own business soon. Although I appreciate the fact that I’m way more qualified than my parents ever were, and if I did the same jobs they had at my age I probably couldn’t even afford rent

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  10. I’m not gonna lie, the reason why regulators are mad about the crypto and the only fans is simple. Money is being put in other peoples pockets that aren’t big market. The pandemic helped a lot of people realize that they can make money other ways. Hell I made a killing last year and I’m still working for 22 an hour. All to reinvest, and that’s where crypto traders are at, we don’t put money into stocks and we don’t sink most of the money we made off crypto in other crypto or just for a few things and keep it moving. I’ve met many crypto trades with more money than me, and they still live pretty modest. I really feel that this is the reason Uncle Sam and other regulators around the world want to tax traders so heavily. Don’t worry we will have our day, the worlds politicians and the corruption gets exposed every day. It doesn’t matter your color/sex/region/religion. We are all getting shafted, and they don’t like that we are fighting back in our own ways.

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  11. There are simply much more people today than there were in previous generations. And most of these people want to live in the same places. This is what drives the prices up.

    Rent and property prices are high in very crowded places, like urban centers. But you can easily find very affordable places if you look in other places.

    I live in Brazil and constantly hear people whining that it’s impossible to pay rent because the average rent of a 40sqm apartment is more than 3k BRL. But then you do a quick search and find places for less than 500 BRL and you see that the person complaining is limiting their search to the most expensive neighborhoods.

    With the rise of remote work, people can look for homes further than before. But people don’t want that. They feel entitled to live where they want, when they want, and pay what they want, without thinking the a million other people want the exact same thing.

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  12. Boomer/almost Gen X here. Never saw all the boomer easy street stuff I see here all the time. Not denying it I just don’t think the unfortunately struggling current generations see it is not a generation issue but a class issue. When I got out of high school houses were a lot cheaper. But inflation was high, mortgage interest rates were like 16%, and jobs were scarce. The late 80’s saw widespread gutting of institutions and factories turning the manufacturing heart of the country into the rust belt. My dad lost his job of 26 years when the company moved for cheaper labor. Maybe those junk bond kings were boomers? I was not one of them. Sorry for the not all boomers rant. It is just nothing I see people bitching about boomers for matches my growing up on the south side of Milwaukee when the factories were shutting down upbringing. Trickle down economics and the rising wealth inequality partially from offshoring jobs, partly from leveraging debt to buy and break up companies, and the insane ramping up of CEO pay while doing everything to gut labor rights and wages hurt a heck of a lot of people including boomers.

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  13. The World is in constant flux, always changing.

    So what if someone could accrue more than you 50 years ago. 150 yrs ago ppl were living without air conditioning, farming or working in coal mines 12 hrs a day, hunting for food and had no internet, cell phones, computers, etc.

    We’ve got it better than 99% of ppl who have ever walked on this planet throughout history.

    And yet still, ppl complain.

    Yes, things could always be better. They could also be worse. WAY worse. We live in relative peace, with enough gizmos and gadgets to make a king envious from a few hundred years ago.

    The problem isn’t “boomers”, the problem is ppl lacking the historical perspective to realize just how good they have it.

    Don’t care how unpopular this post is. Speaking truth to willful self deceit is always unpopular.

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  14. I understand this sentiment. The reality is though that nobody ever bought a house by saving up minimum wage. I’ve been around a few decades and minimum wage jobs used to be for teenagers or people who had just moved here from other countries who were still mastering English. Today, primarily because most of our manufacturing has been moved either down south or overseas, there are just not enough jobs for hard working non college folks to be able to make a living at.

    The boomers or even their parents bear very little responsibility for accumulating so much wealth, it’s almost 100% on the government and their tendency to over tax everything so they can have money for fruitless endeavors and making sure they are all paid. There is a good % of the population who either aren’t equipt to go to college or don’t care to who can’t learn a trade to support their families. They have no shot to share in the wealth until their grandparents and parents die and release some of it.

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  15. These things move in cycles. While we might seem worse off economically, compared to parents/grandparents, we also have access to technology that was unimaginable when they were young. That is creating opportunities to build personal wealth and reshape society at a scale never before possible. Side note, compared to generations like the Lost Generation, investing in crypto seems almost risk free.

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  16. You can also gain followers on the internet and make enough money to not have to risk your limbs working on a piece of farm equipment that claimed more body parts than a serial killer

    Win some, lose some

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  17. One of the Reasons is paradoxically also a stable and relatively „warfree“ timeline. After the second world war there was (at least in Europe) a Lack of specialized personnel. The few survivors could find highly qualified jobs with good pays with only a Highschool degree. The stability we enjoyed over the last 70 years allowed many people to study. Qualified workers are no rarity nowadays and therefore the paychecks are shrinking accordingly. There are many more reasons of course.

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  18. It certainly seems much more difficult to just have a casual middle class life just by working a regular 9-5 job. We’ve also eroded many of the safety nets that have picked people up for decades. The minimum wage in many areas doesn’t go nearly far enough. But I do think that it’s easier today for someone who really wants to *MAKE IT*.

    If your parents weren’t good with money, you used to be screwed for learning about personal finance, unless you found a mentor. Today, financial education is freely available on a device most of us have in our pockets. If you wanted to own stocks or mutual funds in the past, you needed to hope you knew enough to make a good choice, or rely on your stock broker to give you the right advice, even though you were paying them a hefty fee to do the trade. Today? Again, all the information is in your pocket, and the trade is cheap, or even free. Want to be a landlord? Hours of podcasts, videos, and blog posts are there to describe exactly how to do it. Same goes for starting a service business, etc.

    And we’re all acutely aware of the potential with crypto.

    Today, for many of us it’s a mindset problem, not an access and opportunity problem. But most of us still want the equivalent of that 9-5 union factory job. (Maybe today it’s that 9-5 software engineering job?) Instead, I think this may be a golden age for trying to build that generational wealth, so your family doesn’t need to worry in the future. After all, automation is in the process of eating a lot of jobs. Who knows how long this age of opportunity will last?

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  19. The only way you can make money in the future is by building something. If you work for someone you will make pennies. Start something and live off the investors and banks. Hard truth.

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  20. I don’t know and I can’t really say I agree. You brought up a couple of fallacies you did not shine light on. For example, what if I trade small cap coins with big hype. Could my grandkids really inherit any Kitty Inu ?

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  21. The thing is a lot of this is due to the people of our generation being so impulsive. If everyone is buying things on credit it is going to create inflation and force the people who do not want to buy on credit to have deal with inflated prices.

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  22. >
    What pisses me off is that the younger generation can try to work as hard as they want, they will not be able to build up wealth as the previous generations.

    What pisses me off is the instant gratification of this generation. It’s not like our parents became rich overnight. Most of them struggled too, certainly in the beginning. It’s real easy to say: I won’t make it. It’s the perfect excuse for not even trying and shove the blame onto someone else when you’re old and poor

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  23. I understand your sentiment, but i think your reasoning is somewhat flawed. They weren’t working minimum wage jobs and building the life you speak of, they had good paying jobs in the manufacturing sector. Many of these companies had health insurance, bonuses and pensions. The main reason this generation, at least in the US, won’t build wealth is because we have become a service and consumption based economy. All of those rock solid manufacturing jobs have been outsourced to countries where labor costs are low and minimum wage retail and food service are a bulk of the jobs in the US now. Also to years ago there weren’t as many tech gadgets everywhere to waste money on. Most working folk were happy with a newspaper and a Pabst. Add in all of the high cost of living, low wages and modern day distractions it is not surprising that not many can build wealth.

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  24. And some of us actually go to get degrees to get better traditional jobs. If you’re from US, all I can say is you’re fucked.

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  25. The worst is people saying youre unambitious when the whole fucki g system is rigged against the poors(anyone under 500k a year, to them)

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  26. US is in decline since early 2000. Wealth peaked in 1997 or something. Its been a downhill since.

    Just check salaries/income/purchase power adjusted by inflation. Salaries have been flat since 1970 despite productivity increase. All stolen by inflation.

    More for the few, less for the many. How do you think US pays for their military and gov spending??? They steal from you and everyone via inflated currency. It helps that USD has monopoly on international transactions. BUT.

    That too will end and then the crash will be quite terrible.

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  27. Part of it is technology. Another part is a sort of culture of addiction that developed after WW2, not just to drugs but also to consumerism and a certain worldview that made everyone give their money voluntarily to the people who we now blame for our inability to improve our lots. These people didn’t steal as much as convince you to buy what they were selling- from a college education to fidget spinners.

    It’s not entirely our own faults either; a lot of the war for our general future had been fought and lost many decades before our generation was born, and now all we can do is find some way to survive, because thankfully all things are as impermanent as the crypto markets- even generational wealth.

    Do you people have any idea how many rich people there were in history who stopped mattering? You had a bunch of nomadic tribesmen in Mongolia who barely had anything to eat suddenly destroying the Medieval equivalent of Google’s HQ and massacring PhDs until the streets were soaked with their blood and the rivers turned black from the ink of books while pouring molten gold into the throats of their version of Jeff Bezos and Elon Musk- but now Mongolia’s back to being relatively quiet.

    So in the larger scheme of things, this “generational wealth” isn’t that great a problem- demographics at least changes, for good or bad.

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  28. All these good-faith comments absolving the Boom generation of their responsibility are plain wrong. Boomers do have a responsibility.

    They voted consistently, decade after decade, for enlarged bureaucracies, fatter governments and more power for the corporate cronies of the politicians.

    Because “free stuff”, paid for on the backs of the previous generation who went through the Great Depression and the War, and of the following generations who suffer the long-term deferred consequences of their short-term, selfish decisions.

    In Europe we’re fucked because they voted and keep voting for an absurdly humongous State (in many EU countries, the public sector represents *over 50% of the whole GDP*) which sucks more and more of the economy, and that’s why our companies have basically stopped doing anything of relevance, our wages are stagnant, and we are basically living off the momentum of the prior decades, slowly decaying until one day we will just stop moving at all. In the meantime, Boomers gave themselves public pensions that are many times the basic salaries their children and grandchildren make, which are stolen to pay for the fabulous “free healthcare” of their Boomer elders.

    In the US, you’re fucked because they voted and keep voting for a massive almighty military-industrial complex that syphons literal trillions of dollars that would much better be in people’s pockets so they can pay for important stuff like healthcare. They have also consistently voted for massive monetary inflation, knowing that the US can just export it to shithole countries, the USD being the reserve currency of the world and all.

    So yeah, fuck Boomers.

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  29. The world has changed. You can still accrue assets & wealth as previous generations did, you just have to be more flexible.

    In a globalised world, the opportunities are globalised.

    A New Yorker CAN buy a property on a couple of years salary, maybe even 1, they just can’t buy it in New York.

    Few people complain when getting a great exchange rate in a foreign country that reduces their costs of a foreign holiday, because everything is cheap for them. They think it’s great.

    The locals, however, don’t think it’s great as relative to their salary it’s expensive.

    Generational wealth is no difference. It is interlinked. You cannot have all the trappings of globalisation (diverse range of products, foodstuffs all year around, cheap holidays etc.) with none of the trade-offs.

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  30. I find it funny that melinnials and younger just expect boomer or genx wealth without actually putting in the 20-30yrs of work it took to get there.

    Wake up. Time is on your side…. the whole time in market thing. Stop being so…. impatient.

    OR – go out and get yours, and stop bitching

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  31. This is what I have been thinking for years now. Young people have no hope but to be wage slaves the rest of their lives. It’s a fucked up system and something has to change soon.

    I might go study up on how to be a professional thief and go steal from the rich. Even if I get put in jail at least I’ll have three meals a day. Shit that sounds pretty good actually.. free meals, don’t have to put up with asshole bosses, no worries.

    Fuck capitalism. America was born off of slaves and it looks like it’ll end with them.

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  32. It is a challenging time but to be clear, I’m 50 with advanced degrees & I worked 2 jobs to save to buy my first home. Wouldn’t hurt this generation to do the same. Also, doesn’t hurt to respect the nuclear family and the financial model it presents vs. identifying as a tree and all that stupid bullshit. Just sayin. Trees don’t buy houses.

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  33. You should blame your parent’s generation (if they’re Baby Boomers). Your parents might be very nice people and I’m not saying they aren’t,
    but as a generation they did everything they could to make their lives easier at the expense of every generation younger than theirs.

    They ushered in the era of heavy plastic usage. Never did much to curtail fossil fuel usage. Cut taxes repeatedly. Cut education spending repeatedly. Kept the wages on the low end of the spectrum stagnant.
    Funded everything with debt. Wasted a ton of money on pointless wars and nuclear weapons. I’m gonna stop before I break something.

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  34. We are suppose to build generational wealth with out miserable millennial pay.
    If we can do that, then it means we cleared the game.

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