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In March 2011, the 16-year-old Nick D'Aloisio launched an app called Summly that turned long
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news articles into short, easy to read summaries. The app instantly received over 100K downloads
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and attracted venture capital investments. Less than two years later, the app was acquired by
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Yahoo for 30 million dollars making Nick D'Aloisio a millionaire before hitting 18.
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But not everyone gets such an opportunity to become so rich at such a young age. However,
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that doesn't mean there is nothing you can do. In fact, if you make a few right
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financial decisions when you are still a teenager, you are almost certainly going
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to become wealthy in your late 20s or maybe 30s. While it's difficult to imagine yourself hitting
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30 when you are just 15 years old, trust me, it's going to happen much sooner than you think,
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and building wealth later is much more difficult. Because now you don't have
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all of these expenses that adults usually have, such as paying rent, buying groceries, and so on.
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The moment you step into a life where you have to pay the rent and feed yourself,
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there is no going back. You will automatically have fixed expenses that you cant get rid of.
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By the way, I have a confession to make when I was like 15 years old. I had no idea what the
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stock market is. I have heard about it in the news, I have heard people talking about it, but
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I literally had no idea what is it and how does it work. So if you are watching this video as a
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teenager, I am jealous. I wish I was smart enough to learn about investing when I was 15 years old.
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To make this video, I asked myself, what are the things I wish I knew when I was a teenager?
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What are the different financial decisions I would have taken? How would I start building
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wealth if I would be 14,15 or 16 years old? If you are a teenager watching this video,
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this is probably going to be one of the most important things you will learn,
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even if you are slightly elder. I am sure this information can help you as well.
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So if you are ready, give this video a thumbs up, and let's get right
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into it!
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compound interest is the best tool on your arsenal
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The most powerful tool as a teenager you have is compound interest. If you don't take advantage
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out of it, you are literally wasting your teenage years. If you don't know what compound interest
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is and how it can help you, don't worry! Because I also didn't know that when I was a teenager.
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Consider this simple example, If you were given a choice between taking 3 million dollars in cash
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this very moment or a single penny that doubles every day for the next 31 days?
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Which one would you choose? At first glance, it seems like
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choosing the million dollars is the wisest option, but if you take a moment and think about it,
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you will realize that a penny that doubles for the next 31 days is a far better choice.
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In the first five days, the penny that doubles every day turns into a single dollar. By the
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10th day, it increases to 5.12 dollars. Even within the next 10 days, by the day 20th,
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you are going to get only $5243. If you have chosen the penny,
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you probably regret it because you are only getting a little over 5K instead of the 3
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million dollars that could instantly change your life. But if you would give it a little more time,
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that amount would increase to over 10,737,418 dollars by the 31st day. Even on the day 29th,
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it would only grow to 2.7 million dollars. The biggest difference happens in the last two days.
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So, if you start investing while you are still 15 years old, you can rip
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the rewards of the compound interest and become ultra-rich by the time you are 30, for example.
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But because you are not going to see any significant progress
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in the first year or so as it is with the penny in its first 20 days, most people don't start early.
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Of course, you can't start investing if you are under 18, but you can open a custodial account.
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That means an adult -- most likely one of your parents -- must open the account with you and
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be the custodian, and you can start investing. Of course, it's risky because, as a teenager,
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you probably don't know much about the stock market, but you don't have to. I would just
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invest every penny I would save into an ETF that invests in the S&P500. Whatever happens,
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I can be confident that my money isn't going to Go away, and most importantly, it's going to grow. I
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am not gonna touch that money at all, not to buy a car or anything else. I would just let it grow and
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build wealth. And with the power of compounding, once I am an adult, I would have some real wealth.
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2. Number 2: don't spend money
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I know that sounds weird, but you literally can avoid 99% of the expenses that adults
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usually have. Do you need a roof over your head? Just keep living with your parents!
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Do you want to eat? Eat at home, and you don't even have to cook!
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Of course, there are exceptions, but if you are watching this video from a first
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or second world country, which should be the case according to YouTube statistics,
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then you are most likely able to do that. Once you grow up and you have responsibilities, it's much
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more difficult. Trust me. If you haven't tried living alone and paying all the bills by yourself,
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you will never understand it! So take my word! Once you start a family and have kids,
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saving money will become a dream that you will not most likely achieve! So save every penny you can
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while you have the opportunity and invest it in an ETF of your choice.
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And for god's sake, when you hit 18, 19, or 20, don't use that money to buy a car!
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Because getting a car means, a lot of monthly expenses! Every dollar that you spend on
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maintaining that car could be invested, and with the power of compound interest,
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could grow significantly! But in order to save,
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you have to make money! If your parents are giving you pocket money, good for you!
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If not, as it was in my case! Then 3. Try making money
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When you don't have any skills, it's really difficult to make money because all you can
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do is get a low paying job. But when you are a teenager, you can afford to take the risk.
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If you end up failing, no one really cares. You are a teenager. No one expects you to build a
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successful company when you are just 16 years old! And you know what! You still have a roof over your
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head because you are living with your parents and you don't have to worry about what you are going
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to eat because you can always eat at home! So if you are a gamer, try steaming. Maybe
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make YouTube videos. Open a Fiverr account and find out if you can offer any services.
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Try door to door selling. Try to sell something online. If you have got a better idea,
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try it! The best time to try is when you are a teenager! You will never have such an opportunity
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again! Don't think about failure! If you succeed, good for you. If you don't, it doesn't matter!
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I remember helping people fixing their computers back when YouTube wasn't a thing,
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you couldn't simply watch a YouTube video to find out how to fix your computer.
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Especially now, with all of these opportunities, as long as you have access to internet,
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you have no excuses! 4. Keep learning.
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As a teenager, especially when you are 17 or 18 years old. You think that you
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have figured everything out! Trust me. You haven't! You are thinking like that because
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of how little you know about everything, so make learning your first priority!
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Don't assume you know about everything about money just because you could earn
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a few hundred dollars. Don't hesitate to take a piece of advice from someone older than you,
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don't assume you have figured everything out just because you watched a YouTube video.
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5. Get yourself ready once an opportunity strikes.
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You probably already have heard that most of the money is made during crises, but it's not
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made by random people but rather by those who were getting ready for such an opportunity years ago.
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Those who saved enough money and understood how the economy works made a fortune in 2020.
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Others built their fortunes during the crypto crisis, or during the real estate crash. So,
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if you are not seeing instant progress now, don't worry. Just keep hustling. Your time will come,
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be ready for it!
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Building wealth is great. Investing, build businesses is, of course, awesome! But it
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doesn't worth it if you are not going to have fun. Make sure to have fun along the way,
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especially when you are a teenager. You are not going to be a teenager again, so don't miss this
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opportunity to create some unforgettable memories. Anyways, give this video a thumbs up if you have
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found it helpful, and remember that you can get two free stocks from Webull if you open an account
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and deposit 100 bucks.
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Make sure to subscribe if you are new around here and turn on your notifications.
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Thanks for watching and until next time.