A recent Bank of America study, Gen Z: A New Economic Force, forecasts that Gen Z will earn $36 trillion over the next five years — and $74 trillion by 2040. If true, they’ll be the richest generation in history.

But that wealth is based on income — not savings — and that’s a critical difference.

Despite higher earnings, Gen Z is also reportedly spending twice as much as they have in savings. For now, their income is helping them keep up — but for how long?

As spending habits shift and services like Buy Now, Pay Later (BNPL) become more common, the long-term impact on the economy is hard to ignore. Still, the bigger concern isn’t what’s happening on a national scale — it’s if you recognize these habits in your own life.

With so many people falling into the cycle of high spending and low savings, what can you do differently to stay in control of your finances and build stability for the future?

Spending Isn’t Just About the Cost of Living

It’s easy to blame high spending on the rising cost of living. There’s truth to that, but it’s not the only cause.

Look closer, and you’ll see that much of the spending gap — especially among younger generations — comes down to choices:

• $150–$225 shoes from brands like HOKA and On vs. sub-$100 options from Nike or competitors
• Ordering meals through DoorDash or Uber Eats instead of picking it up yourself
• Financing through BNPL as an alternative to saving

An occasional high-cost purchase isn’t the issue — and financing, in moderation, isn’t either. The real problem is what happens over time. These habits gradually widen the gap between income and savings, making it easier to grow comfortable with financial fragility.

The Wealth Effect Can Be Misleading

In economics, there’s a concept called the wealth effect — the tendency to spend more as income or assets increase. It creates a sense of financial freedom that feels real in the moment, but can collapse if the paychecks stop coming.

Real financial security doesn’t come from a steady paycheck — it comes from building assets that hold their value even if you lose your job:

• Robust savings
• A home
• A paid-off car
• Investment income

If your entire lifestyle depends on your income, you’re building a financial foundation on sand.

Discipline Is More Than Saying No

Financial discipline isn’t just about saying no to something you want. That’s a great start, but the next step is redirecting that money somewhere more meaningful.

Rather than letting extra cash sit in your checking account, consider putting it to work in a retirement or brokerage account, a high-yield emergency fund, or a separate fund for a major purchase.

At Break Out Money Guys, financial intentionality matters. In other words, don’t just practice restraint — spend with purpose.

How to Take Control of Your Finances

It’s easy to make these ideas sound good in theory — but how do you actually put them into practice?

1. Build a Budget

Before anything else, you need a budget. It doesn’t have to be complicated — just track your income, list your fixed expenses, and set clear goals for saving and investing. Build in a realistic category for flexible spending, like food and entertainment, so you don’t feel restricted.

The hardest part is simply getting started. But once you know where your money is coming from and where it’s going, staying on top of it becomes a lot easier.

2. Drop the Victim Mindset

There’s no shortage of commentary blaming other generations or politics for the state of the economy. Sure, the landscape has changed, but it doesn’t mean you’re out of options.

Waiting for the system to lend a hand won’t get you anywhere. Want to buy a house someday? It starts with small, intentional decisions right now.

3. Ditch the Hacks

Life hacks and financial tricks are everywhere — automatic savings, the envelope system, the latte rule. They can be helpful, but they’re just training wheels. The real goal is to reshape your mindset around money.

At some point, hacks won’t be enough. You’ll need long-term discipline — the kind that shows up when no one’s watching and spending is easy. That means learning to problem-solve on your own, not relying on trendy shortcuts.

True financial wisdom comes from choosing the harder road today to get to a better place tomorrow. It may not go viral — but it’s the kind of discipline that actually moves you forward.

What Warren Buffett Can Teach You About Wealth

Warren Buffett once said, “The biggest thing about making money is time. You don’t have to be particularly smart; you just have to be patient.”

Most of Buffett’s wealth came after he turned 50. He started investing at age 11, but it was decades of patience, discipline, and compounding that made him one of the richest people alive.

Take these principles seriously, and you’ll put yourself in a position most people — no matter their generation — never reach. Wealth isn’t built through tricks, hacks, or overnight wins. It’s built slowly, intentionally, and with a long view.

The sooner you start, the better.

If this article stirred a desire to take control of your spending, don’t ignore it. If you’d like to continue building a strong financial foundation, check out our podcast and explore our other financial wellness articles.