Name: How To Become a Millionaire as a Teenager (step by step)
Uploaded: 2021-02-05T19:08:06.000Z
Duration: 9 min 44 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Past simple

In March 2011, the 16-year-old Nick D'Aloisio  launched an app called Summly that turned long  

To-infinitive

news articles into short, easy to read summaries.  The app instantly received over 100K downloads  

and attracted venture capital investments. Less  than two years later, the app was acquired by  

Yahoo for 30 million dollars making Nick  D'Aloisio a millionaire before hitting 18. 

But not everyone gets such an opportunity to  become so rich at such a young age. However,  

that doesn't mean there is nothing you  can do. In fact, if you make a few right  

financial decisions when you are still a  teenager, you are almost certainly going  

to become wealthy in your late 20s or maybe 30s. While it's difficult to imagine yourself hitting  

30 when you are just 15 years old, trust me,  it's going to happen much sooner than you think,  

and building wealth later is much more  difficult. Because now you don't have  

all of these expenses that adults usually have,  such as paying rent, buying groceries, and so on. 

The moment you step into a life where you  have to pay the rent and feed yourself,  

there is no going back. You will automatically  have fixed expenses that you cant get rid of. 

By the way, I have a confession to make when I  was like 15 years old. I had no idea what the  

stock market is. I have heard about it in the  news, I have heard people talking about it, but  

I literally had no idea what is it and how does  it work. So if you are watching this video as a  

teenager, I am jealous. I wish I was smart enough  to learn about investing when I was 15 years old. 

To make this video, I asked myself, what are  the things I wish I knew when I was a teenager?  

What are the different financial decisions I  would have taken? How would I start building  

wealth if I would be 14,15 or 16 years old? If you are a teenager watching this video,  

this is probably going to be one of the  most important things you will learn,  

even if you are slightly elder. I am sure  this information can help you as well. 

So if you are ready, give this video  a thumbs up, and let's get right  

  compound interest is the best tool on your arsenal

The most powerful tool as a teenager you have is  compound interest. If you don't take advantage  

out of it, you are literally wasting your teenage  years. If you don't know what compound interest  

is and how it can help you, don't worry! Because  I also didn't know that when I was a teenager. 

Consider this simple example, If you were given  a choice between taking 3 million dollars in cash  

this very moment or a single penny that  doubles every day for the next 31 days? 

Which one would you choose? At first glance, it seems like  

choosing the million dollars is the wisest option,  but if you take a moment and think about it,  

you will realize that a penny that doubles  for the next 31 days is a far better choice. 

In the first five days, the penny that doubles  every day turns into a single dollar. By the  

10th day, it increases to 5.12 dollars. Even  within the next 10 days, by the day 20th,  

you are going to get only $5243. If you have chosen the penny,  

you probably regret it because you are only  getting a little over 5K instead of the 3  

million dollars that could instantly change your  life. But if you would give it a little more time,  

that amount would increase to over 10,737,418  dollars by the 31st day. Even on the day 29th,  

it would only grow to 2.7 million dollars. The  biggest difference happens in the last two days. 

So, if you start investing while you  are still 15 years old, you can rip  

the rewards of the compound interest and become  ultra-rich by the time you are 30, for example. 

But because you are not going  to see any significant progress  

in the first year or so as it is with the penny in  its first 20 days, most people don't start early. 

Of course, you can't start investing if you are  under 18, but you can open a custodial account.  

That means an adult -- most likely one of your  parents -- must open the account with you and  

be the custodian, and you can start investing. Of course, it's risky because, as a teenager,  

you probably don't know much about the stock  market, but you don't have to. I would just  

invest every penny I would save into an ETF  that invests in the S&P500. Whatever happens,  

I can be confident that my money isn't going to Go  away, and most importantly, it's going to grow. I  

am not gonna touch that money at all, not to buy a  car or anything else. I would just let it grow and  

build wealth. And with the power of compounding,  once I am an adult, I would have some real wealth.

I know that sounds weird, but you literally  can avoid 99% of the expenses that adults  

usually have. Do you need a roof over your  head? Just keep living with your parents!  

Do you want to eat? Eat at home,  and you don't even have to cook!  

Of course, there are exceptions, but if  you are watching this video from a first  

or second world country, which should be  the case according to YouTube statistics,  

then you are most likely able to do that. Once you  grow up and you have responsibilities, it's much  

more difficult. Trust me. If you haven't tried  living alone and paying all the bills by yourself,  

you will never understand it! So take my word! Once you start a family and have kids,  

saving money will become a dream that you will not  most likely achieve! So save every penny you can  

while you have the opportunity and  invest it in an ETF of your choice.  

And for god's sake, when you hit 18, 19,  or 20, don't use that money to buy a car! 

Because getting a car means, a lot of monthly  expenses! Every dollar that you spend on  

maintaining that car could be invested,  and with the power of compound interest,  

could grow significantly! But in order to save,  

you have to make money! If your parents  are giving you pocket money, good for you! 

If not, as it was in my case! Then 3. Try making money 

When you don't have any skills, it's really  difficult to make money because all you can  

do is get a low paying job. But when you are  a teenager, you can afford to take the risk.  

If you end up failing, no one really cares. You  are a teenager. No one expects you to build a  

successful company when you are just 16 years old! And you know what! You still have a roof over your  

head because you are living with your parents and  you don't have to worry about what you are going  

to eat because you can always eat at home! So if you are a gamer, try steaming. Maybe  

make YouTube videos. Open a Fiverr account  and find out if you can offer any services.  

Try door to door selling. Try to sell something  online. If you have got a better idea,  

try it! The best time to try is when you are a  teenager! You will never have such an opportunity  

again! Don't think about failure! If you succeed,  good for you. If you don't, it doesn't matter! 

I remember helping people fixing their  computers back when YouTube wasn't a thing,  

you couldn't simply watch a YouTube video  to find out how to fix your computer.  

Especially now, with all of these opportunities,  as long as you have access to internet,  

As a teenager, especially when you are  17 or 18 years old. You think that you  

have figured everything out! Trust me. You  haven't! You are thinking like that because  

of how little you know about everything,  so make learning your first priority! 

Don't assume you know about everything  about money just because you could earn  

a few hundred dollars. Don't hesitate to take  a piece of advice from someone older than you,  

don't assume you have figured everything out  just because you watched a YouTube video.

5. Get yourself ready once an opportunity strikes.

You probably already have heard that most of  the money is made during crises, but it's not  

made by random people but rather by those who were  getting ready for such an opportunity years ago.  

Those who saved enough money and understood  how the economy works made a fortune in 2020.  

Others built their fortunes during the crypto  crisis, or during the real estate crash. So,  

if you are not seeing instant progress now, don't  worry. Just keep hustling. Your time will come,  

Building wealth is great. Investing, build  businesses is, of course, awesome! But it  

doesn't worth it if you are not going to have  fun. Make sure to have fun along the way,  

especially when you are a teenager. You are not  going to be a teenager again, so don't miss this  

opportunity to create some unforgettable memories. Anyways, give this video a thumbs up if you have  