How To Invest For Teenagers

wipe wipe it worked it's a totally outdated meme by now and it does not make any sense but the first piece of advice is get a haircut and if you clicked on this video looking for investing advice for teenagers you're probably gen z or maybe you're just the parent who's looking for advice for their kids or maybe you've stumbled on the dark corners of the interwebs at 3am but whichever one it is you've come to the right place and speaking of all the different types of generations i just read somewhere that zoomers are destroying millennials on tick tock and that just isn't fair cause millennials inherited the worst economy known to man we have the lowest job prospects the least amount of money out of all the generations boomers think that we're entitled and now zoomers are beating up on us i can't start this video on adulting until i've had my morning coffee and you smash the like button because you owe it to me don't be such a hufflepuff i cannot do this video with a straight face this is ridiculous being a millennial is the thing i hate and love about myself the most and this wasn't even bought for this video i literally had this in my kitchen pantry this is embarrassing everyone knows that us millennials were a mistake so leave britney alone put jokes aside let's talk about the best investing advice for teenagers and this really applies to everybody the earlier on in life you hear this the better off you'll be i just wish this was stuff that i heard it when i was in my teens because i would have ended up with a lot more money than playing cards in my bank account but lucky me i watch the secret and the power of the secret compels me to make money out of all these playing cards clearly real bills because uh money's stiff like that let's begin [Music] hi my name is andre and i like to think of life kind of like a video game except we don't get to pick the characters that we play as or the stats because those get assigned to us at random but just like life you get to control your character and as long as you explore the entire map and you collect all the items and all the special pokeman like this happy birthday pikachu which i'm really proud of owning and as long as you grind and level up then the game will get a lot easier but i want you to remember that if it ever gets frustrating or tough you don't just quit playing the game you continue practicing as long as you remember that there is a ton of rng involved in this game of life you cannot influence much because the rng preferably favors those who are born into elite guilds with lots of coin so the best thing that you can do is continue unlocking those special abilities special skills collecting all the items leveling up and that's when this game will get a lot more fun so kind of think of this video as your video guide walkthrough tutorial so starting with the first teen level level 13 you might be wondering andre i've got like 100 coins to invest where do i put them and the answer is wherever it's going to promise to give you the greatest amount of returns and if you're thinking of taking this money and putting it in something like the stock market then please understand this super simple fact whether you have a hundred dollars or a thousand dollars right now the best amount of money that you can make from this is a couple hundred extra dollars in just a few months but at worst you can lose your entire principal investment and that's not worth the risk so instead take this money and put it into your own character development of boosting your stats but if you don't have the money to do it then understand that life takes a different kind of currency as well and that is visa i'm kidding it's not a plug for visa it's actually time you can invest either your money or your time but this level is very easy and you're literally doing it right now so watch as many tutorials as possible and pay a special close attention to people who look like they beat the game a couple times that includes your teachers your parents and your grandparents who literally played that game on hard mode this is the age to learn and listen now in level 14 i strongly suggest that you start reading now when i was younger i hated reading i don't know about you but i just could not stand when people suggested or recommended or told me what i had to read that's why i started with picture books like this one because i wasn't very bright i'm still not but i'm moving on from picture books it's progress but the first book you have to read is the simple path to wealth by j.l collins it's going to change the way you look at money and life please read that book the second book is i will teach you to be rich by ramen setti ignore the clickbait title of the book it's actually a really good book and the third book is harry potter and the goblet of fire but that's the millennial of me and that's actually a really good book it's my favorite if you want to go advanced or hard mode then please read the intelligent investor by benjamin graham to give you a lot of advanced tips and tricks about investing your money in the stock market when you're ready but you're not there yet now levels 15 and 17 are some of my favorites and that's because we start to evolve so don't mind the fact that you'll be seeing some physical changes that's pretty normal in preparation for level 18 but in level 15 the first thing you want to try to do is get yourself a job i got my first job at level 15 and it taught me the fact that i could make money but also the value of that money true story when i was in high school i was flipping through this magazine and i saw this mercedes slk for sixty thousand dollars and i thought wow that's cheaper than i thought and as soon as i got my job i unlocked the reality skill tree and i realized that working part-time for nine dollars an hour i would never be able to afford a car like that and from that moment on i never asked my parents for a single thing again because i realized the time and the value that it would take to earn each and every single dollar also between levels 14 and 17 go on as many side quests as you can try everything except for the things you know you shouldn't but try youtube try tik tok try cooking try tennis magic card issue photoshop photography this journey will allow you to discover your master skill or otherwise more cheesily known as your passion now most people will miss this side quest but if you can find that skill you will set yourself up for the rest of your life it's almost like a cheat code i was fortunate enough to find my special ability at level 12. and for the next 8-10 levels i tried to put all of my experience points into that one and boost it to the max that allowed me to travel the world make friends with people i never thought in a million years i ever would which allowed me to find my career which eventually allowed me to consult on now you see me and work with harry potter yeah i know harry potter's not now you see me but i got to work with daniel radcliffe and as cool as those experiences were unfortunately the world didn't place such a high dollar value on all my skills so bonus points for you if you can discover that special ability that society places a high value upon then you're gonna make a lot more money than i ever did so really think of levels 13 and 17 as levels to invest in yourself to boost your own stats because that's where you're gonna get the greatest returns on your money bar none now we've come to the most important part of the game and that is level 18. this is going to set you up for the rest of the play style of the entirety of your game we need to collect a few key items here so this is part of your main storyline this is not a side quest so don't go partying off the map and as soon as you turn level 18 the first thing you want to do is get a bank account in your own name look for something with a high interest rate on your savings accounts and this means that by parking your money here your money is going to end up making you more money allah compound interest style which is what we want but here are a few of my personal favorites ally bank or cit bank now right now they're both yielding around one percent which isn't very much but these rates fluctuate up and down depending on the economy the market rate which is usually set by the final boss the federal reserve so right now everything's about the same so don't chase it too much because if you find something that's maybe point zero five percent more that's only five dollars per year more for every ten thousand dollars you have invested the second item on this list is something that you absolutely need asap and something that i didn't get until level 24 which is kind of embarrassing to admit and that is a credit card and for the longest time i thought people with credit cards were just irresponsible with money because they bought things on plastic because they couldn't afford it and i was so wrong because what credit scores do is they allow other people to see how responsible you are with other people's money and if you're good they'll let you use their money at good interest rates and if you think like me well i don't want to borrow money if i want to buy a car or a house i will save for it but even if you have all that money to just pay it in cash you should really never do that for reasons that i will get to in another video but as soon as you hit level 18 trust me get yourself a credit card because this side quest takes years to fully finish in order to build your credit history personally i recommend going with something like a secured credit card or this uh discover it's secured it's kind of like the gold standard if you don't have history and it's pretty cool because it gives you two percent cash back on different categories and one percent cash back on everything else but pro tip if you're a student in college instead of getting that one get yourself the cash back student edition of that card it's the same idea but it's going to give you better perks and the idea of this is to get a high score of 750 or higher and we could do all that within eight months to one year if you can follow these next few steps number one make sure to always pay your bills on time and never carry a balance because if you do you're going to pay more money in interest alone than all the rewards that you're going to get in return if you could do all that then 35 of your score will be accounted for just paying on time but if you miss your payment for whatever reason immediately pick up the phone and call the little number on the back of a credit card and ask them for forgiveness usually the first missed payment is going to be okay and it can be forgiven as long as you call and ask and number two is the utilization rate which accounts for a huge thirty percent of your score now if you can keep your utilization rate of thirty percent or lower you'll do just great for you have a thousand dollar monthly spending limit spend no more than three hundred thirty three dollars and thirty three cents but if you wanna be ultra conservative and do what i did and get there far quicker then utilize no more than ten percent or a hundred dollars or less in this case now you could literally just buy one little tiny thing like a pack of gum or just some gas and in that case your utilization rate will be in the single digits and that will improve your score dramatically and number three is your length of history which accounts for 15 of your credit score which is why it's so important to do this as early as possible now for me this is what drags my score down the most and if i had started when i was 18 my score would easily be over 800 by now but pro tip cheat code if you can have your parents co-sign on their credit cards for you then you will inherit their credit score if they have an excellent score i couldn't do this because my parents didn't have a good score but your mileage may vary if you can do these three things you will easily and quickly beat this side quest the third item on this list is something you need to get asap as soon as you hit level 18 it's probably the most important part of this video and that is a retirement account it could be traditional or a roth ira now think of these accounts like savings accounts except instead of putting your cash in here what you're putting in here is mostly stocks and the reason you want to do this is because it protects your money from taxes in the case of a traditional ira you pay no taxes today but you will pay taxes later on the money that it's grown into in the case of a roth ira you pay taxes up front but no taxes later in life when you withdraw those millions that you're ready to retire on if you have no idea which one you want to pick you can actually have both a traditional and a roth but remember you can only contribute six thousand dollars per year and you can contribute it down the middle however you want fifty fifty one year in one one year in the other doesn't really matter now if you could do this early look how much coin you can end up with assuming a growth rate of eight percent which is what you can expect from the stock market now assuming you started to max out your roth ira account at level 18 for three years only three years until level 21 when you're fully evolved into an adult you will have ended up with 781 thousand dollars which is an insane amount of money at retirement that's amazing if you had done this at 31 then you would have ended up with 287 000 at age 67 which is almost two and a half times less all because you started just 13 years later which isn't that much of a difference that's the power of time and compound interest at work so pause this video if you're 18 years or older and go and make that account because you're literally losing money right now ready pause okay i know you didn't actually pause this video but as soon as you finish watching this video or as soon as you turn 18 please go do that and let me know in the comments below if you actually did and the fourth item you need to collect is to get yourself a stonk and preferably put it in a retirement account it's going to be one of the most complicated things you think you'll ever do because there's thousands of companies to select from and half a dozen character play styles to choose you can be a growth stock wizard a real estate investment mage or even a defensive dividend investor and the list goes on and on i actually made a video about that which i will link in the description below the video it's super cool and you can select exactly which character is best for you and while you're level 18 one of the most important things that you can do is get into the habit of building good habits and the first of these good habits is to track your expenses i cannot emphasize this enough every single dollar that you make start writing it down every single dollar that you spend write it down write it down on a piece of paper just to get used to it manually or you can immediately download an app like mint or personal capital those apps track everything you make and everything you spend and they get you into the habit of tracking all of the progress because nothing ruins progress than not knowing where you've been because you have no idea where you're going this is just as true for building wealth as it is for anything else the second habit you should build for yourself is to take care of your body and your health might seem obvious but as soon as you level up in life you start to forget about the skill tree more and more and before you know it your abs melt away slender physique goes away and your metabolism just vanishes and goes somewhere else in fact if you compare what i look like today versus my first few videos in 2019 it's like watching someone's metabolism get thick but if you don't train your character regularly healthcare costs will continue to expand and before you know it it's going to be your number one expense in retirement and the third good habit is to be frugal and live well below your means and i don't mean be cheap because being cheap is just not wanting to spend money for the sake of it and never getting any enjoyment or value out of life but being frugal is to take that same dollar and stretch it to the most of your ability but don't fall into the trap of saying life is short live a little actually statistically life is not short you're gonna live to be a very old person someday statistically speaking and if you can be happy with less you'll succeed a lot earlier this is one of the most difficult skills to build but if you can learn how to delay your gratification you are scientifically proven to end up with more money i'm going to give you a cheat code of my very own it's a little privileged because not everyone can use this but if you have parents that you can convince to set you up with a custodial account then you can give them your money that you earned from your job and they will invest the money for you and as soon as you turn 18 and you level up you will inherit that account and you'll know exactly what to do because you watch this video and you smash the like button the other cheat code i will leave is a free link to my discord channel where we talk about investing and everything in between it's an incredible community and i'll give you three more free stocks three more free cheat codes sign up to weeble or get your parents to do it with a custodial account you get a free stock up to two hundred fifty dollars and if you fund your account one hundred dollars you'll get another free stock that up to fourteen hundred dollars and i will be paid but you don't have to use my links just go get those free stocks and get your third free stock from robinhood simply for signing up love you all thank you so much for watching this video you can follow me on instagram i post from time to time and i'll see you back here on monday and friday please use this video as a reference guide come back to it anytime let me know in the comments down below if you have any questions i'll try my best to get back to them and i try to answer all the comments that you guys leave thank you so much for watching again and if you're 18 or younger then congratulations for even watching this video and getting this far you are much farther ahead than all of your peers and all of your friends it's unbelievable that you're here good job go out there go level up just make sure to enjoy all the levels in between because life goes fast [Music] bye [Music] it'd be easier for me if i turn away to flee but there's something holding on [Music] today

Channel: Andrei Jikh

Views: 3,128,342

Keywords: how to invest, how to invest in stocks, how to invest in real estate, how to invest as a teen, what to do when you turn 18, how to invest as a teenager, how to invest in your 20s, how to invest 1000, how to invest 10000, stock market investing, real estate investing, credit cards, credit score explained, how to build your credit score, how to save money, how to build wealth, how to become a millionaire, best advice, how to invest for teenagers, andrei jikh, dividends

Id: hWwTzqCmdI4

Length: 17min 8sec (1028 seconds)

Published: Sat Jul 25 2020