A subreddit called r/NoStupidQuestions recently saw a thread created by No-job-no-money asking a pretty simple question: where the heck did young people get so much money?
“How do some young people have so much money? What do they do for a living to be free all the time and still make a lot of money?”
The thread went a little viral and we’ve combed through some of the best answers for you.
1. Unfair wealth distribution.
The US is grossly unfair in terms of starting wealth. I don’t hate rich kids: they didn’t choose to be born rich. But we lived on different planets, and I hate the society that punishes kids for not being born rich.
2. Family money
Lots of people have family money, but very few are honest about it.
3. Different priorities
Also different priorities.
In Germany there is a stereotype that young guys from migrants from the south east (Turkey / Afghanistan / etc.) always have big expensive cars. Brand new Mercedes in their twenties. Conservative Germany see that and can only wonder how someone can have something at that young age. It must be stolen, from money laundering in those weird shisha bars. Must be something illegal.
The thing is, Germans prefer other things in life. They don’t show pride in owning something expensive, they don’t want to make someone else jealous. Your neighbors won’t congratulate on your brand new Porsche. They will envy you and probably think you didn’t deserve it. Thing is, those migrants don’t think that way. They are not jealous if you show up with a Mercedes.
Different priorities, different choices. For you it’s a fake facade, for their circle it is a sign of pride in their belongings. Don‘t project your expectations on others.
4. They don’t
Don’t compare your life to someone’s highlight reel on social media.
You see what they want you to see, but you never get to see their problems.
I highly doubt that individuals in their young 20s have the means to live that kind of lifestyle without some kind of support such as their parents. There are exceptions im sure, but the point being is that you should always take what you see with a grain of salt.
5. They’re rentals
Also the rent economy – people can rent almost anything these days! Fancy clothes and handbags, cars, property… hell, even friends. So often we only see the surface of people, not the reality.
This is super common in the “influencer” world.
6. Lied
My aunt and uncle are loaded. Some years ago, my younger cousin would tell me he bought his expensive car (for a 17 year old) all by himself.
My uncle told me that he had bought both cars for his kids with his own money. Wanted them to save their money.
Totally fine with this. But lying just makes him look desperate for attention.
7. Clout
Don’t even get me started. I was the only one in my ex-friend circle doing literally everything I could to financially educate myself fresh out of high-school.
Those same people are in crippling debt today because they were so busy with building this ridiculous image of themselves as being rich JUST for social media.
One of those guys fucked up real good. He took out a loan for a BMW M3 at 16% interest over 7 years with $3000 down. How he was even approved for that loan is beyond my understanding.
People will do anything for clout, man.
8. Brutal hours
I’m grew up in a pretty rural area and most wealthy young people I know are in Factory/manufacturing and work 60-70 hours a week and have virtually NO free time. They’ll have a 50k truck and 200k house in their mid 20’s but are stuck in a brutal 12-14hr workday lifestyle.
I know very few wealthy kids that have lots of free time, maybe in that case they would probably have come from wealthy families? Trust fund kids maybe?
Personally Ill take free time over money any day (well to a certain extent I guess) I’m not lazy, I just believe that your TIME is the most valuable currency that you own, not the money in the bank.
9. No Rent
Not paying rent is the primary. You know how much money I would save just by not paying rent. I could pay my mortgage that’s how much money.
Tbh I am working just to pay rent 🙁
10. Trust Funds
I only recently learnt a mate has a dozens trust funds & stock handed down generationally. They spend most of their time in a constant state of decorating. I always wondered how they afforded to do it considering they don’t do much or anything else.
11. Debt
A way to have the “nice car” they really should not be buying.
12. More opportunities
If you’re a natural “life of the party” type of person. If you have a likable and interesting personality. People are drawn to you and opportunities can heavily turn to your favor.
13. More rich families… maybe hard work
I come from a pretty well-off family, and I have made it very, VERY clear that my parents are not to help me unless I ask. I have my own bank account, I’m setting up a life map.
And I probably won’t be as rich as these people, because-ngl-some of them are REALLY spoiled.
So. My answer? Rich family. Boom. But hard work is always the answer.
14. A disgusting life
I’ve been poor and felt just like you. I’m 31 now and my expenses are literally 600 a month. The rest of my money is spent buying gifts, traveling, and basically doing whatever I want. My friends get annoyed that I “do whatever all the time” but the truth is im almost living day to day like a 14 year old. I eat fast food, leftovers, live with 5 roommates. My actual life is really gross. But I put up with that because I get to have way more freedom and adventures pretty often.
I’m not married, have no kids, hell I haven’t owned a car in 5 years, but if you look at my social media it looks like all I do is travel, skydive, party, eat well, kayake, etc.
I’m not posting me sitting at home.
Also, I’m not in debt at all but lots of people are.
15. Debt again
A lot of people like that are actually in debt. They go into debt to sell the “perfect IG lifestyle.” I have plenty of classmates from high school who moved to LA right after graduation (no rich parents btw) and continuously post photos of them showing off cars, going on luxury shopping trips, etc. and most of them are in so much debt it’s crazy. One of my classmates left LA last year during the pandemic because she couldn’t afford to keep up with her fake lifestyle anymore. Now she has a job working at Target to pay off some of the debt she’s accumulated and moved back in with her parents.
16. It’s not theirs
I’m young (23) and make way more than I need but if I ever posted a video on a boat or drove a nice car or went to clubs 24/7, it’s safe to say it is either my parents vehicles, or I was able to afford it due to the position my parents put me in. No 23 year old who didn’t come from a nice upbringing could afford an Audi (I don’t drive an Audi, but you get the point), even if they make six figures. Most 23 year old’s have a negative net worth. The ones that flaunt anything either are 1) coming from nice backgrounds or 2) are digging themselves into debt. I can confidently say this because I come from the first scenario.
17. Just ask
Possible reasons: family money, credit card debt, illegal activities, “morally ambiguous” activities, rich friends and/or suckers. There are plenty more, and everyone’s circumstances are different. Some have planned and budgeted for whatever it is they do. Money isn’t everything. Keeping good people around you is. Live within your means, or ideally below it. r/personalfinance is a great repository of information and guidance if you ask for it to get you on track. Flashy clothes and cars aren’t everything you think they are; mileage varies with the people who possesses them. The great thing about being 21 is you get to experience that all for yourself and find out. The fact your asking these questions, and hopefully sincerely seeking answers is a great start. Follow up.
18. Debt!
Beware of debt.
I make what most would consider a comfortably large amount of money. I drive older cars, have a modest house, and an constantly fixing my broken things.
My neighbors have brand new cars from nice manufacturers, sometimes boats, a second house maybe, and all this and that.
Why? Because they over leverage liability debt. Besides my home, I have none. It’s my choice, cause I don’t give a fuck about what any one thinks.