The flexible finance strategies helping young Brits afford the lifestyle they want

Young adults in the UK are being very vocal and intentional about the lifestyle they want. Recent social media trends reveal, Gen Zs are changing work culture and processes. Many Gen Zs will not apply for a job if the salary and work perks are not clearly detailed. In addition, contrary to many expectations, young Brits born after 1996 are investing their money, even far more than baby boomers, according to a recent study. It’s clear that young adults have a developed taste to live the good life, which partly may have been driven by their exposure to social media. These young adults depend on key financial strategies to break the traditional path to wealth and live their dream lifestyle.

5 major financial strategies young Brits are leveraging to afford the lifestyle they want

According to Finder, two-thirds of Gen Z in the UK have invested in the stock market at some point in their lives, making them one of the most financially active generations the UK has ever seen. But investing is just one piece of the puzzle. Young Brits are also turning to content creation and other flexible side hustles to build the income they need. Here are five major financial strategies young Brits are using to afford the lifestyle they want.

1. Online trading

Online trading is the buying and selling of financial instruments through internet based platforms. It covers a wide range of markets including spread betting, CFD (Contract for Difference) trading, forex trading, crypto trading, and stock market trading. Traders can speculate on whether the price of an asset will rise or fall, and profit from both directions if they get it right. One of the main reasons online trading appeals to young Brits is the ability to use leverage, which allows traders to control larger positions with a smaller amount of capital. This means potential returns can be much higher than what traditional savings accounts offer. Platforms like IG, eToro, and Trading 212 have made it easy for anyone with a smartphone to start trading, and many young people now see it as a legitimate way to grow their income alongside a regular job or studies.

2. Investing

Investing is young Brits’ go-to for earning extra income. They use compound interest to grow their money. Compound interest allows them to earn interest not only on their initial savings, but also on any interest that accrues over time. This way, even small amounts of money they invest early on could potentially grow significantly, ready for when they need it.

To put compound interest in perspective, imagine a 24-year-old investing £250 each month in a stock portfolio earning 7% annually. After five years, their £15,000 in savings could grow to about £18,600, all from compounding. Extend that to 30 years, and the same monthly investment could reach around £540,000 from £90,000 contributed. The figure rises even higher with increased monthly savings. Many young Brits also choose to withdraw dividends from such investments, using those periodic payouts to support their lifestyle while their core investment continues to grow.

Popular social media communities like the wallstreetbets subreddit have also played a crucial role in promoting investing culture among young Brits. The subreddit is mostly based on contrarian investing and principles that directly oppose conventional Wall Street practices. Many young adults take advantage of groups like wallstreetbets to share their portfolio and investing journey and get feedback from the community.

3. Content creation

YouTube, TikTok, and other content platforms have also opened young adults to a new stream of income. These social media platforms pay content creators for pulling in viewers and driving engagement. The platforms are able to deliver leads to businesses that pay them for ads; in turn, they generate revenue and share part of their capital inflow with creators on their partner programmes. This model has created a thriving digital economy many young Brits leverage to increase their income.

YouTubers, podcasters, and video content creators earn up to $12,000 per million views, depending on their audience size, niche, and engagement rate. Top creators with millions of subscribers often supplement their ad revenue through sponsorships, affiliate marketing, product placements, and branded partnerships. Even smaller creators with loyal audiences can generate a steady income through monetised views, live streams, and fan-based subscriptions.

4. Influencer marketing

Influencer marketing is a marketing niche that’s mainly driven by young Instagram, TikTok and YouTube stars. Recent surveys show many kids now aspire to be social media influencers when they grow up due to their high-end lifestyles. The visibility of luxury cars, designer wardrobes, international travel, and dream homes showcased by online influencers has redefined success for a generation raised on digital media.

These influencers are changing the narrative on how marketing is done in today’s world. Businesses now reach out to young adults to create unique cinematic ads and wide audience-reaching marketing campaigns. They help announce new product launches, review products and create desired awareness. Many young British adults already engaging in social media influencing contracts use their online income to effortlessly fund their desired lifestyle.

5. Business, side hustles and the gig economy

Young adults are now venturing into business more than ever. The job space has changed and current trends reveal Gen Zs now access fewer apprenticeship, internship and employment positions. Young adults who are actually employed are mostly found in low-paid sectors like retail and hospitality. These sectors do not allow many young people the possibility of scaling income as it’s rare to see an increase in wages sufficient to sponsor the lifestyle they want.

This has led many college students and young adults in Britain to launch online businesses and take up side hustles. According to a Mikround survey, 60% of UK students and graduates have a side hustle or a full-time job. From e-commerce stores and digital design services to freelance writing and social media management, young British entrepreneurs are finding innovative ways to generate income outside of traditional employment. The flexibility of online business allows them to work remotely, balance studies or other commitments, and create new financial opportunities that support the lifestyle they desire.

Young Brits Are Doing It Differently

The financial playbook for young adults in the UK looks very different today compared to a decade ago. Online trading, content creation and many other online businesses have given this generation more ways than ever to grow their income and fund the lifestyle they want. The common thread across all of these strategies is flexibility, and that is exactly what this generation values most. For many, the You Only Live Once (YOLO) motto is spurring them to seek ways to level up their money game.

Author Profile

Adam Regan: Deputy Editor

Features and account management. 3 years media experience. Previously covered features for online and print editions.

Email Adam@MarkMeets.com