I’m 18 years old and just starting college. My college is being paid for by my family so I don’t really have any major expenses and I’ve been working minimum wage for a while and have about ten grand saved up. If you were in my shoes, where would you start and how would you begin to use that money in order to make more?

  • SheddingCorporate@alien.topBEnglish
    1·
    1 year ago

    Mmm - never take investment advice from some random person on the internet. For all you know, I could suggest you “invest” in the latest crypto scam. No, don’t do that. If anyone tells you they’ve got an investment that yields super high returns … really take that with a giant pinch of salt and preferably just walk away.

    I’d recommend educating yourself. You have lots of time before you hit retirement. Study personal finance as a hobby (a second hobby after those entrepreneurship goals!) and act upon the lessons you learn. Don’t get into debt. Don’t follow charlatans like the author of Rich Dad, Poor Dad.

    The book I’d actually recommend is Ramit Sethi’s “I Will Teach You To Be Rich”. He’s also got a weekly YouTube show/podcast with the same name. I like what he’s saying there - it’s not just about blindly saving or “making more” or sticking to a budget or eating beans and rice so you can save an extra buck. His focus is two fold:

    1. Figure out what your ideal “rich life” would look like
    2. Set up simple automated systems and processes that will get you there

    He’s not telling people to have 5 different bank accounts and to check their spreadsheet every day and to stick to a budget. Rather, he recommends simply watching the larger trends of how your money is growing (or not) and acting to quickly course correct where necessary.

    He’s had people from different backgrounds and different current wealth status on his podcast, and it’s really inspiring how straightforward getting to a million (many times over) can be if you just start early and set up those automated systems. Listening to those episodes, and to the ones where people have made poor financial choices and now are trying to course-correct are absolutely eye-opening and are great for thinking “how would I handle this if I were in their shoes?”

    You’ve already got multiple factors in your favour, indicating you’re on the right path:

    1. You’ve already saved 10k as a high school student [this is the biggest tell - you respect the money you’ve earned]
    2. You’ve got minimal expenses right now, thanks to your parents
    3. You’re getting a good education, again, thanks to your parents

    All of this means you’ll likely wind up in a high paying job, or will strike out into entrepreneurship if that’s the right path for you, and you’ll likely stick to it until you make it succeed.

    So just take your time, figure out what ETFs make sense for you, and start planning for that rich life you’re going to have in the not so distant future. :D