Baby boomers seem to have gotten the best of everything financially — they are the generation that bought homes and cars, raised families, took vacations, paid for college and have strong retirements, and all on one income in many cases. Additionally, “pensions were still a thing, and the cost of living didn’t eat your paycheck before it even hit the bank,” according to Trevor Houston, CEO at ClearPath Wealth Strategies, LLC.

Learn More: Suze Orman’s Top Tip for Building Wealth Is a ‘Very Easy One’

Read Next: The 10 Most Reliable SUVs of 2025

Millennials, on the other hand, inherited student debt, wage stagnation and recessions at every critical career milestone, Houston pointed out. It’s unsurprising that boomers hold as much as 53.2% of the wealth in the U.S. compared to millenials’ 4.6% of the wealth, according to Bloomberg.

Can millennials catch up? Experts suggested it is possible, especially as more of them head into their higher earning years.

“Baby boomers may have had lower education and housing costs, but they didn’t make the salaries that many millennials make today,” said Nancy Anderson, regional planning director at Key Private Bank.

Additionally, she said it’s important not to forget that boomers also experienced severe inflation in the 1970s, characterized by persistent high inflation rates, rising food and energy prices and the end of wage and price controls. Millennials, who have been investing and making smart financial choices, could be well on track to catch up.

Find Out: The No. 1 Way Americans Become Millionaires Is Pretty Boring — and Easy To Do

Good financial habits that can help millennials bridge the gap include prioritizing saving with consistency in your saving and investment plan and budgeting, Anderson said.

“It is important to balance saving for the future while maintaining a comfortable lifestyle.”

That can be accomplished by keeping fixed expenses in check while prioritizing saving and investing, she pointed out.

“A big mistake that some professionals make is to increase lifestyle expenses and sacrifice wealth building as income levels rise.”

Also, millennials should build their budgets with wealth creation in mind, Anderson said. Start by setting aside 10% of your paycheck into your long-term savings plan such as a 401(k) especially if you have a company match. Then she recommended a breakdown of expenses as percentages of income as follows:

Fixed Expenses: Total of 50% to 55% of income

Housing: 32% to 40%

Utilities: 4% to 6%

Transportation: 5% to 10%

Medical and health insurance: 4% to 8%

Variable Expenses: 25% to 30% of income

Groceries: 8% to 13%

Entertainment (includes dining): 6% to 11%

Subscriptions and miscellaneous: 2% to 5%

Savings and Investing: 20% of income

401(k) pretax or Roth: 10%

Personal saving and investing: 10%

If you feel late to the game and are playing catch-up, Houston recommended, “Start where you are. Even if you feel late, the best time to plant that money tree was 10 years ago, the second-best time is today.”

Make smart choices like automating your savings, regularly investing and finding ways to bring in additional income.

“You don’t need to hit a home run, just get on base. Momentum is more powerful than timing,” he said.

Don’t forget about the power of compound interest, Houston said. “Compound interest doesn’t ask how old you are it just asks if you’re consistent,” he said.

He urged millennials to use what’s available to them, starting with a Roth IRA, contributing to your 401(k) if there’s a match and automating savings where you can.

“The key isn’t picking the perfect strategy, it’s getting started and staying consistent. The key is automation. Set it and forget it. And don’t try to time the market, time in the market is what builds wealth.”

In this economy, “a single income is too close to zero,” Houston said. “Side hustles aren’t just for extra cash, they’re for building freedom.”

Whether it’s consulting, freelancing or monetizing a skill online, every additional income stream gives you more control. Try turning your talents into tools, he urged.

As most financial experts will agree, you can’t build wealth just by earning and saving it — you have to invest it, be strategic about it and set goals.

“That means budgeting with intention, tracking your net worth and realizing that financial freedom isn’t about having it all, it’s about owning your time,” Houston said. “Small consistent habits beat big occasional efforts.”

More From GOBankingRates

7 McDonald's Toys Worth Way More Today 

4 Companies as Much as Tripling Prices Due To Tariffs 

5 Types of Cars Retirees Should Stay Away From Buying 

5 Cities You Need To Consider If You're Retiring in 2025

This article originally appeared on GOBankingRates.com: Can Millennials Ever Catch Up to Boomer Wealth?