Why financial success feels harder for young adults today

You’re earning more than your parents did at your age. You’re more educated, more connected, and maybe even more ambitious. So why does financial success feel farther away?

It’s not just you. For many Millennials and Gen Z adults, especially in Singapore, the UK, and parts of Asia, financial progress feels like a treadmill on incline. Even with steady jobs, disciplined budgeting, and clear goals, milestones like homeownership, debt freedom, or retirement planning often feel delayed or out of reach. This isn’t simply a mindset issue. The numbers back it up. But more importantly, this generational shift isn’t a reason to give up—it’s a call to plan differently.

Financial success used to follow a pattern. Earn, save, invest, retire. For older generations, this linear model worked—largely because housing costs were lower, wage growth outpaced inflation, and job tenure came with both stability and benefits. Today’s young professionals are navigating a very different equation.

In cities like Singapore and London, the cost of housing has far outpaced wage growth. Home price-to-income ratios have ballooned. Even in dual-income households, saving for a downpayment can take nearly a decade—assuming no major disruptions like caregiving duties or job transitions.

At the same time, higher education—which was supposed to be the great income equalizer—often comes with a burden: student loans. In the UK, for example, many graduates begin their careers with tens of thousands in educational debt, paid back over decades under a complex income-based system. Singaporeans may avoid formal loans but still spend years contributing to their family’s educational expenses or repaying informal borrowing.

And while inflation may appear modest on a national level, the real cost spikes—childcare, housing, healthcare, and food—affect exactly the categories that matter most to young adults trying to build a stable life. So yes, financial success is harder to achieve today—not because of individual failures, but because the system itself has changed.

The traditional planning approach—retire by 65, pay off your mortgage early, invest in property—may still work for some. But for many young adults, it’s neither desirable nor feasible in its original form.

Instead of abandoning the concept of financial success altogether, we need to redefine it with today’s realities in mind. And that begins by asking a better question: What kind of life do you want to build, and how can your finances support that—not someday, but soon?

You don’t need to own a home by 30. You don’t need to retire by 50. But you do need a clear strategy for liquidity, security, and optionality.

Let’s put aside the old milestones for a moment. Instead of asking, “Am I financially successful?”—ask:

1. Do I have breathing room today?
   This refers to your monthly cash flow. Are you consistently able to save at least 15% of your income after essentials and debt payments? Do you have a 3–6 month emergency fund?
2. Am I protecting against downside risks?
   If you were to lose your job, fall sick, or need to care for someone, do you have systems—insurance, backup cash, dependents support—that reduce the shock?
3. Is my money aligned with my next 5–10 years?
   This is the most overlooked part of planning. Are your investments accessible when you need them? Do your savings vehicles match your timeline? Is your risk exposure appropriate for your life stage?

This framework doesn’t rely on homeownership or early retirement as the markers of success. It focuses instead on flexibility, sustainability, and preparedness. And most importantly—it recognizes that planning is not about perfection. It’s about clarity.

One of the reasons this generation feels financially stuck is social comparison. Unlike previous generations, today’s 30-year-old doesn’t just compare their financial life to their neighbor or sibling. They compare it to a curated, global feed of peers on Instagram, LinkedIn, and TikTok.

This constant exposure skews perception. Seeing someone travel frequently, invest in multiple properties, or announce a “six-figure” side hustle creates the illusion of being behind—even when you’re on track based on your own income and goals. This is where financial dysmorphia sets in: the feeling that your progress is inadequate, regardless of its actual stability.

And yet, much of what’s shown online omits the real story—inheritances, debt, burnout, or the fact that many income streams are temporary or subsidized by other means. The antidote is not to disconnect entirely from social media. It’s to build a financial planning system grounded in your reality—not someone else’s curated version of success.

If financial success feels harder, your plan needs to be smarter—not riskier, just better matched to your situation.

Here’s what to focus on:

1. Make peace with a longer runway.
Many Millennials and Gen Z adults will spend longer renting, paying off debt, or building career capital before hitting traditional financial milestones. That’s not failure—it’s a shift in sequencing. If your plan assumes 10 years to homeownership or 15 years to retirement savings catch-up, that’s still valid. Build your assumptions around real timelines, not ideal ones.

2. Prioritize liquidity and risk buffers early.
Instead of chasing high investment returns, build cashflow stability first. Maximize employer contributions, use tax-advantaged vehicles when available (like CPF top-ups or ISA accounts), and keep your emergency fund untouched. These are your defense layers—don’t skip them.

3. Automate your future, not your guilt.
Too many young professionals beat themselves up over spending, even when their savings rate is reasonable. Use automatic transfers into savings and investment buckets. Once your 20–30% savings is locked in, the rest is yours to use without guilt. Budgeting works better when it's proactive, not punitive.

4. Invest for utility, not prestige.
The right financial decision is one that supports your actual needs. A small, manageable apartment may be better than stretching for a bigger mortgage. A basic ETF portfolio may serve you better than chasing crypto or individual stocks. Your plan should serve your life—not social status.

5. Use professional help early—not just when you’re rich.
Financial planning isn’t just for the wealthy. In fact, it matters most when your resources are limited and your goals need tight alignment. A certified planner can help you model tradeoffs, optimize savings order, and avoid expensive missteps. Think of it as paying for clarity, not just advice.

This isn’t about whether you’re rich or poor. It’s about whether your money strategy reflects your life—not the system your parents navigated.

Here are a few planning questions to consider:

• If you lost your income for three months, how would your expenses be covered?
• Do you know how much of your portfolio is accessible in the next five years?
• Are you over-insured on flashy coverage but under-insured on disability or dependents?
• Are you saving enough to maintain—not just afford—your future lifestyle?
• Does your investment timeline align with when you’ll actually need to draw down?

These are not easy questions. But they’re the questions that move you forward.

The landscape may be harder, but the fundamentals haven’t changed: Save consistently. Spend with intention. Plan based on your timeline, not someone else’s benchmark. You don’t need to “win” money. You just need to use it well.

And that’s where the clarity begins. Not with a big milestone, but with a quiet decision: to build a life that fits—and to let your finances support it, patiently and intentionally. Because financial success isn’t a finish line. It’s a system you design to protect and empower the life you’re already building.