How To Build Wealth As A Teenager (6 Tips)

everyone welcome back to the channel in this video we're looking at how to build wealth as a teenager or somebody in their 20s or 30s or just anybody who likes to think that they're young so what we're gonna do today is look at some of these different things that we can do to build wealth and I don't like to beat around the bush I like to get to the point you're gonna notice I don't make a lot of jokes I'm not that funny I'm not that entertaining but I really like to just try to give as much information in these videos as possible so if you stumbled upon this channel randomly and you want to see more videos like this make sure you hit the subscribe button drop a like if you find value in it and let's get started here so I think for most young people one of the biggest advantages that we have that's really important to take advantage of is the fact that we can take more risks in most cases than people who maybe are a bit older who might have more obligations more things that they have to take care of maybe they have three or four kids that they need to put food on the table they have to take their kids to the dentist to soccer practice and I've never been a parent but from what I hear and being a parent it's a lot of work and there's a lot of things that you have to do and so when you're younger there's a lot more risks that you can take in most cases of course not everybody fits into this category but you can take a lot more risk and so whether this is starting a business investing or doing something with your finances or building wealth when you are younger can certainly pay off quite drastically dramatically in the future and so what we want to talk about here are a couple of different points that we can really dig into to understand some of the best ways to build wealth so one of the big things we can do is we can find a mentor now stop stop right there because this is for some reason people say this in videos and then the next thing that they say out of their mouth besides finding a mentor is let me mentor you and show you the way and charge you a thousand dollars for an online course to show you how to make money or some other crap look you don't need any of that stuff but having a mentor can be extremely extremely useful and you can find these in your local community in your local area go to your church go somewhere to your local real estate meetup and find people who are successful in terms of finances of course there's plenty of other areas of life that are extremely important but in terms of finances go find somebody who's succeeding who's crushing it who's killing it and then go talk to them and find a mentor in your area or even online somewhere that doesn't charge you money that doesn't arge used for some like mastermind little group or something you don't need any of that honestly it's free the best way to find a mentor is to go to somebody instead of begging them to teach you their best business practices or begging them to teach you how they invest and made their millions of dollars don't just go beg people to teach them because you know they probably get hundreds of people asking them that all the time the key here to do this is to go to somebody who's succeeding and then offer some type of value to them now in most cases this could be just you going up to your local real estate mogul in your area who might have been 50 million dollars and saying hey I really love what you do I'm really interested I'm willing to work for free I want to learn how to do this I'm willing to totally work for free if you need any help with anything just let me know and I want to work with you I'll work for you for free do something like that and you're gonna find that a lot of people are really to take it in because you know you're providing value to them and then over time maybe they take you under their wing they start teaching you the ways of the business they start teaching you the ways of how they invest and you can learn so much from something like that so finding a mentor from people who are older one of the biggest tips that I could have here for you - with this - is to think about who you're associating with and your friend groups at the moment so for example right now I'm 21 I'll be 22 next week I'm starting to feel old but what you want to do is look at your friend group right and for most of my life I was spending time with people my age I was spending time who maybe were a year younger maybe a year older but I would say 98% of my friends were somewhat within like a 12 to 24 months span of older or younger than me and so what I want you to do after this video is start to think about branching out your friends people that you associate with talk with start branching out to people who are older than you who are in their 30s in their 40s or 50s in their 70s and start finding people who have wisdom because even if you're smart you know if you're 18 years old you're watching this video right now and you think that you're smart or maybe you just are really smart there's one thing that's very difficult to build at a young age and that is wisdom so people who are older they've lived through these experiences and some go and ask these people say hey what were some of the biggest mistakes that you've made in your life what are some of the biggest financial mistakes or some of the best tips you could give somebody who is a teenager or younger for something that they should be doing with their finances and that leads me to the next point here which is something that I've actually done this for most of my life I would just ask people you know you're at a family party and you start to ask your older relatives and you say hey what's the biggest mistake that you made when you were my age with your finances and I can tell you eight out of ten times or I guess that's four out of five times four out of five times people would tell me Nate my biggest mistake is that I didn't save invest money for retirement until I was already in my 30s I was in my 40s and they wish they had done this when they were a teenager or when they were in their 20s so do this look I just made a video last week about Roth IRAs and some of the mistakes that people make but think about investing into IRAs or different types of retirement accounts I know it doesn't sound fun right when you're young it just doesn't sound fun it seems so far away how I don't even know if I'm gonna make it to my sixties in my seventies honestly the way I'm going probably not but it is by far the biggest mistake that I hear people saying consistently who are older and if you're watching this video right now and you find yourself maybe 40 or older maybe comment down below and give some of your advice for teenagers or for people in their 20s some of the things that maybe you missed out on things that you wish you had done differently just a little thing there so guys go down read some of the comments and see what we have down there now the next big tip that I can have for everybody for building wealth in your teenage years is developing your education and this does not mean that you need to go to college in fact I actually have yet to graduate college then putting that one off for quite a while you don't have to graduate college in order to build wealth you really don't especially in 2020 but what you should do is find a way to set yourself apart from the rest of the pack see if you were bringing no skills to the table if all you can do is stack a can of beans on a shelf which is still important you know I don't want trash talk people stacking beans on a shelf but if your job is somewhat replaceable if there's a hundred other people behind you who can also do the same thing it's going to be difficult to charge a lot of money for that and to make a lot of money from something like stacking food on a shelf where if we take a different job like say underwater welding which most people who are doing underwater welding are making six figures over $100,000 per year that's a pretty tricky job not a lot of people can say that they know how to do underwater welding and because there's more demand and there's not that many people doing it and because it's a lot it has to be learned over years it is something that can make you a lot of money so you don't have to go to college just find something that going to be a skill that's going to earn you more money than the average person and that that's going to take some time right read some books learn some things go to tech school vocational school college college in most cases is still worth it but if you're looking at your potential college degrees and you're thinking about which way you should go let's say that you're equally happy you're equally equally excited about two different majors one major is the the history of science the history of science and then the other major is let's say finance right well in most cases a degree in the history of science which isn't even science it's just like studying the history of it is it's gonna be kind of a little bit difficult to get a job in that you know maybe you can find something I'm not saying it's terrible you know if that's your thing go for it really go for it cuz I think it's important to follow your passion but if you're equally as excited about finance there's probably a lot more jobs in something like finance versus something like the history of science or art history or some other different fields it might be a little bit more difficult to find something in that area and also might be difficult to find a high paying job in that area but of course you know at the end of the day do something that you enjoy doing because you're doing it for most of your life okay so we just talked about the importance of IRAs and how important it is to invest into retirement accounts or start to invest into the stock market but I want to kind of flip you around right here because I think this is something that is not said very often but if you are a teenager or you are in your 20s and you want to start investing into the stock market or a different types of investments the problem here is that if you're starting with a small amount of money it's difficult to make your money make you money if you have very little money hopefully you're following along here for example if you have $100 that you invest as an eighteen year old and over the course of a year you make 20% gain on that investment well that's $20 on $100 you made $20 over the course of a year from your investment you could maybe maybe go to Waffle House and get like a pretty decent meal for $20 that's all you're gonna get over the course of a year at the end of the year you can go to Waffle House and maybe have a little Fiesta right but it's kind of a problem because you you know it's it's not really doing that much for you so making your money work for you when you have very little money a problem okay so the key here and this is this is the thing that I did at a pretty young age and I think it's been working well you know I can't say I'm winning all the time but I think it's been working pretty well is instead of just focus on all of your efforts on investing with a small amount of money I think you're better strategy is to focus on building a business or focus on increasing your income increasing your education and then taking that increased income taking the money that you're making from this business venture we have plenty of videos showing people some different business ventures that you could explore if I have tons of videos on that you can check out but take that money from that and then either funnel it back into that business or take your profits or your earnings from your higher paying job that you got from your education and then funnel that back into your stocks and investments because 20 percent on a hundred dollar investment is twenty dollars but twenty percent on a million dollar investment is two hundred thousand dollars and we get a little bit more conservative and say 20 percent on a hundred thousand dollar investment is twenty thousand dollars over the course of a year which is the you could you know rent out a waffle house for a couple months for twenty thousand dollars so it's a pretty good deal in that case so making your money work for you it's important it's really useful but it really only benefits people who already have money so don't focus all of your efforts 100% of your efforts on investing at the moment if you were a teenager and instead still focus on investing still you know think about your retirement accounts look I started investing when I was pretty young it's good to get your feet wet learn read lots of books but also spent an equal amount of your time building your income through businesses or through a job that's going to be higher paying so my final tip is to think about not getting a car now if you've been watching this channel for a while you'll know I kind of have a thing against cars and that's because they are so expensive and people don't realize this because they think hey I paid $4,000 for my car how can it be that expensive it's it's only $4,000 I didn't spend anything else on it that is one of the biggest mistakes you can make not only do you have depreciation you have insurance for your car you have wear and tear you have maintenance you have registration you have fees you have speeding tickets you have all these different expenses that go into cars gasoline right we have so many expenses that go into the price of cars that the average price of owning and operating a car in a year is about eighty nine hundred dollars that statistic is coming from the Bureau of Labor Statistics I literally memorize that because I say it all the time to people who ask me what's the best best suggestion you can have for me to save some money or to start to build some wealth start to think too about getting a car if you can I know most people especially in America we we need cars can we live far away from things but if there's a way just start to think about it is there a way for you to not have a car maybe that means you take the bus once a week maybe you get somebody to drop you off every now and then maybe you have to take an uber every now and then but I decided to not have a car and it saves me so much money and it sets me so much further ahead than most other people with finances because I don't have all these different things going on and with vehicle expenses so just just start to think about that you know maybe it won't work for you but it's it's something that I do want you to think about because it will work for some people watching this video or maybe you already live in a city and you have a car and you don't use it very often maybe that's something to get rid of so thanks watching video I hope you guys found some value in it if you did make sure to drop a like subscribe to the channel if you haven't done so already and I'll see everybody later in this week's video

Channel: Nate O'Brien

Views: 421,565

Rating: 4.9612322 out of 5

Keywords: how to build wealth, how to make money as a teen, how to save money, how to make money, making money, building wealth, how to build wealth in your teens, how to build wealth with low income, saving money, nate o'brien, financial education, personal finance, how to get rich

Id: ihf5cn5JP8A

Length: 11min 56sec (716 seconds)

Published: Thu Jun 04 2020