For anyone who wanted a video about how to invest as a teenager, or what to do when you turn 18 years old – here is that video, enjoy! Add me on Instagram: GPStephan
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FIRST: GET A CREDIT CARD
Doing this is VERY easy – as a first credit card, I highly recommend The Discover It Secured Card.
All you need to do is put down a small deposit, and they will give you a credit card with a limit equal to that amount. To build your credit, all you need to do is put a minimal amount on the credit card each month, then pay it off in full to avoid paying any interest. It’s as simple as that, the entire process should take you less than 15 minutes to do.
SECOND: GET A BANK ACCOUNT
I think it’s incredibly important that you have a bank account that’s solely in your own name, that ONLY you have access to – this is just one step closer to becoming a productive, financially responsible adult. Again, this step is just about learning how to manage money on your own, and eventually becoming an independent adult who can support themselves financially…and smash the like button.
THIRD: GET A ROTH IRA
A Roth IRA is a tax advantaged retirement account that lets you contribute post tax money…meaning taxes have already been taking out of what you earned…and by the time you’re 59.5, all the PROFIT in that account can be accessed completely tax free.
FOURTH: STAY OUT OF CONSUMER DEBT
I’m not referring to a low interest rate mortgage on a rental property, or any type of leverage that makes you more money…instead, I’m referring to credit card debt, expensive personal loans, high interest auto loans, or ANY other type of loan that serves no purpose other than to make your life awful. The responsible way to handle purchases is to only buy things that you can afford, put it in a credit card…and then PAY THE CREDIT CARD OFF IN FULL before its due.
FIFTH: GET A JOB
I sound like some old man saying this, but no joke, if there’s ANYTHING that set me up for a successful future, and that got me started on the right path early in life…it was this. GET A JOB. Anything. Even if it’s a few hours per week, JUST GET SOME WORK EXPERIENCE. Doesn’t matter how much money you make, just work…the experience that you’ll get from a part time job will be worth it 100x over by the time you’re older.
SIXTH: LIVE BELOW YOUR MEANS
Do not buy stupid stuff to impress people who don’t matter. Do not waste your money on things that aren’t going to benefit you long term. I’m a firm believer that it’s totally okay and acceptable to live SUPER cheaply in your 20’s, to set up the rest of your life to live comfortably.
SEVENTH: DONT GO TO COLLEGE JUST TO GO TO COLLEGE
Here’s my solution: if you don’t know what you want to do with your life, either go and get work experience until you figure it out – or go to a 2-year community college part time while you work. This way, you can save a TON of money – you can continue working at the same time – and that gives you more time to figure out what you really want to do.
EIGHTH: INVESTING ADVICE FOR TEENAGERS:
For most people out there, just invest in a broad low-cost index fund, invest consistently, and invest with the expectation of holding it for the next 30-40 years. That’s literally it. An index fund like FZROX, VTSAX, FIAX, or a target date retirement fund through Vanguard would do the trick. If you just do this one investment, chances are, this will become you full retirement when you’re older.
Now, If you ARE going to take on more risk, while you’re young is the time to do it. If you want to start that business, DO IT. If you’re successful at it, then you’re further ahead financially. Either way, you win…even if you LOSE, it’s better you lose a small amount when you’re 18, then a LARGE amount when you’re 35.
So don’t let those mistakes be made in vain…if everyone can learn from what I did wrong, then at least my mistakes went to a good purpose.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com
To obtain financial freedom, one must either be a business owner, an investor or both, generating passive income particularly weekly or monthly basis. That’s the key to living a financially stability
Yes but didnt the fact you couldn't get a loan make you save more to buy with therefore you were in less over all debt?
Graham is like a brother to me, I don't have a brother but he makes me feel like I had a very advisable brother. Thank you, Graham.
I want to become wealthy to become independent
Is the chime credit builder any good?
Good insight in the video. Learning how to Invest as a teenager is key to long term wealth creation. A Teenager’s Guide on how to Invest Like Warren Buffett and Charlie Munger teaches the key principles for investment success.
I'm going to college but I am not entirely happy about it. My parents and pretty much every adult are forcing me to go. But I'm trying to look at a bright side and say that it is for structure. I will be playing a sport at this college, and I will be able to move to another state in which I would try my hardest to move to anyway. I am starting businesses before I even enter college, so I should be just fine when I get out of college. Trying to look at the other side of the coin. Oof
man
I feel the job
now black
people no money
Iyf you live in canada a roth ira is a tfsa
I got a mortgage with out a credit card.
A proper mortgage company that performs underwriting will write a mortgage, if you have a good down payment. You don't NEED a FICO score.
Does this apply to Europeans? Especially the ROTH IRA thing
My daughter turns 18 at midnight. Soooo…. you're saying do both the Roth IRA 'AND' the index fund?
The problem we have is because Most people always taught that " you only need a good job to become rich " . These billionaires are operating on a whole other playbook that many don't even know exists.
You know why i wanna be extremely wealthy ????
Reason- Seeing that i had a long lasting impact on the society and that people remembered me after i had been long gone is a dream worth dying for.
I’m from india and I disagree with your college part because in India college is cheap
should i open a ROTH IRA if i have student loans?
Please watch this
For the credit union I have problem because it’s not fdic insured so idk if that’s a good to store your money in a credit union
"Dont go to college" 💀
I had problem comprehending trading in general. I tried watching other YT trading channels, but they made the concepts more complicated. I was almost giving up until when I discovered your channel. I love the way you break down the content and explain everything in detail. The videos are easy to follow
It’s all about mountain America credit union
Just turned 18 been working part time sense December I have already saved 3k I need to do better with my money. I have a goal by the age of 20 and I know with hard work and determination I’ll have it 💪🏾💪🏾
maybe I missed the answer to this question, but I worked a few odd jobs in high school and got paid in cash. Obviously I did not pay any taxes on that cash, and I don't earn any income right now, and therefore I don't pay taxes on my (nonexistent) income. Does this mean I cannot put money into a Roth IRA just yet?
I’m from Europe is this still possible to do all of the steps ?