Becoming a Millionaire: Complete Financial Guide for Ages 13-18

This video is going to create future millionaires, because I'm going to explain exactly what you need to be

doing at ages 13, 14, 15, 16, 17, and 18, so you can get financially ahead. And if you're older, then use this as a

checklist to make sure you're on track. I promise, if you just implement a few of these things, you'll be so far ahead

of everyone else, they won't even believe you. I managed to become a millionaire in my 20s. However, if I

watched a video like this when I was younger, then I'm sure I could have made my first million much faster. Don't just

watch the part of the video that's for your age. You need to do all of these things, and if you skip steps, you might

end up regretting it. Right, let's kick this off with age 13. When it comes to investing, the

hands-down most important thing is time in the market. But what does that actually mean? Well, put simply, you

want to have your money invested for as long as possible, so it can start growing rapidly, like a snowball rolling

down a hill, and eventually turning into an avalanche. So, if you're actually 13 or younger, and you're watching this

video right now, I think all us oldies would agree that you're in the best possible position. So, how do you

actually start investing at this age? Well, as you're currently not of legal age to invest on your own, you're going

to need to convince a parent or guardian to open up something called a custodial account. Now, I understand it might be

hard to speak to your parents about money and investing. My parents never ever spoke about money at all, let alone

investing. So, if you want to, feel free to show them the next 30 seconds of this video, so I can help persuade them to

open up one for you. A custodial account is an investing account controlled by an adult for the benefit of a minor,

typically a family member. These have different names, depending on where you live. In the UK, we have something

called a junior stocks and shares ISA, which lets your parent or guardian invest up to £9,000 a year on your

behalf. Now, of course, they don't have to do this much, but just think, every birthday or Christmas, you could ask

them to put some money into the account and invest in some stocks and shares. I'm not a financial advisor, and this

shouldn't be taken as financial advice. However, over the years, I've just invested in a simple low-cost S&P 500

index fund. This invests your money across just over 500 of the biggest public companies in the USA, so you

don't have to worry about picking individual stocks. The historical average yearly return of the S&P 500 is

12.58% over the last 10 years, as of the end of May 2024.

Of course, investments can go down as well as up. If you've got a junior stocks and shares ISA, then you'll be

able to start managing it for yourself from the age of 16, and you can start to withdraw money from the age of 18, if

you wanted to. But, if you're anything like me, once you've got the investing bug, you'll probably want to keep it

growing. In America, you have two main options, a UGMA and a UTMA. These both have unlimited contributions, but you

could trigger gift tax if your parent or guardian puts in more than $18,000 in one year. The only real difference

between these two is that with a UTMA, you can also invest in real estate and fine art. A custodial account can be set

up with most banks and brokerages. My favorite's Vanguard for both the UK and the USA, as they have pretty low fees,

and they've certainly been around for a long time. So, if you're younger than 18, then please, please, please promise

me you'll talk to your parents about getting one of these accounts, as it gives you such a head start. Right,

moving on to age 14. Besides time, another huge advantage you have at this age is that you probably

don't have to pay rent and other monthly bills. This means you have the freedom to try different ways to make money,

since you don't need a reliable income every single month. You should go out and try everything, from cleaning

driveways with pressure washers to competitive sports. Not everything has to be about making money. You can learn

a lot from other activities, which you can use to make money when you're older. My son, Curtis, used to get up at 4:00

a.m. most mornings for swimming practice. Of course, he didn't earn any money from this, but it did teach him

discipline. So, when he started his business at 18, he could outwork his competition. I speak to so many

teenagers who tell me they don't have a talent. But, when I ask them what their hobbies are, they can't even name a few

they've tried. You can't expect to find your talent if you don't try a wide range of different things. If it doesn't

work out, then that's absolutely fine. Just try the next thing, and the next. When you find something you're naturally

good at, or enjoy getting better at, double down on it, and make it your mission to become one of the best. Next,

age 15. One of the things I miss most about being younger is birthday and Christmas

presents. Not that I got a lot, as my parents weren't very wealthy, but I definitely got more than I do now.

That's just the reality of growing up, especially for young men. So, instead of asking for presents like PS4 games and

other things that you're not really going to care about in less than a few months, a huge life hack is to ask for

cash whenever possible. I'd also highly recommend going and getting a Saturday job. Now, don't be too picky at this

stage. Even working in a retail store behind a counter can earn you a nice bit of extra money. You'll also learn a lot

of useful social skills that will prepare you for the real world. Doing both of these things will help you start

stashing away cash, as long as you avoid the temptation to spend it. I like to use the word stash instead of save, as I

have a problem with the way most teenagers approach saving money. They will save for months, and then go and

spend it all on a new game console or a day at the theme park. Now, obviously, we all like a roller coaster, that's for

sure. This shouldn't be what you're stashing your cash for, though. Of course, you should spend some of it to

have fun. However, see your stash more like a launchpad that you can use to make even more money. The hardest thing

in the world is starting with $0 to your name. So, if you can avoid that, even if you have as little as $100, then it's

going to make everything so much easier. Oh, and I almost forgot, go and apply for your provisional driving license. In

the UK, you can do this when you're 15 years and 9 months old, so it's worth getting, even if you don't intend to

start using it right away. Right, now it's getting serious, age 16. You've got a 2-year window before you

enter the real world, so it's time to really think about what skills you're going to start focusing on and

developing. By now, if you've done all the things I've mentioned in this video, then you should have a pretty solid idea

of what you're good at. These may seem unrelated at first, but pick a handful of them and start stacking your skills

on top of each other. When I was younger, I was talented at selling, design, mechanics, and woodwork. So, I

invested my money to different things that would help me get better at those skills. Now, I had no idea how I'd link

them together, but I trusted that in the end, it would all make sense. I'm not really talking about buying courses, as

there's so many fake gurus out there just trying to scam you out of your money. With that said, there are some

good ones around, as well. Even better, though, if you can find some sort of community to join, where you can chat

and learn, so much the better. However, the majority of your money should be invested in equipment. I remember when

my son bought his first iMac for $500 from his uncle. He did this with the money he'd saved from doing part-time

jobs. Because that was the biggest purchase he'd ever made at the time, he would sit at that Mac and learn

everything about it. This led to him teaching himself how to edit videos and use Photoshop. Investing in tools like

this can really open so many doors. Between now and 18, your biggest aim should be to develop these different

skills that you can later use to make more money than someone that just decided to play video games. This is

because you can come into the real world with some actual value to offer. This heavily cuts

down the amount of training a company needs to give you, which takes the burden off

to age to me very carefully. You need to pass your driving test. Yes, I know you probably don't need to drive anywhere at

17, but trust me, the sooner you do this, the better. In some states in the USA, you can do this as early as 16.

Remember, you only need to do it once. Not being able to drive is one of the biggest things stopping most people from

starting a side hustle. I mean, what if you have the chance to work with a client, but they live 30 minutes away,

and you can't get a lift every week? You'd have to rely on public transport, and we all know how unreliable that is.

You'll probably end up getting a bad name for yourself and coming across as unprofessional, leading to that

opportunity going out the window. One of my key rules to this day is to be early is to be on time. To be on time is to be

late, and to be late, well, that is unacceptable. So, if you're watching this now and considering driving

lessons, do it. Please don't be that person that regrets not jumping on it sooner. Yes, it might be a bit scary at

first. I thought it was really exciting, to be honest, but think about the bigger picture. Once you've learned, you can

use some of that money you've been stashing away to buy yourself a cheap starter car, then nothing's holding you

back. Now, it's time for the big one, age 18. The world really opens up to you once

you turn 18. Now, you're officially classed as an adult, and there are so many things you can do to get

financially ahead. I wish someone had sat me down on my 18th birthday and told me exactly what I needed to do. So,

that's what I'm going to do for you now. I've made a checklist of seven things you need to do to set yourself up for

success. Even if you're over the age of 18, it's super important you do all of these

things sooner rather than later. Let me know in the comments how many you've ticked off. Number one, open your own

bank accounts. Having your own bank accounts that only you have access to is the first logical step you should take

once you're over the age of 18. I say accounts because really and truly, you should have two. The first is a current

account, or as the Americans call it, a checking account. This is where your money should flow in and out. For

example, let's say you got yourself a job at a coffee shop. The coffee shop pays your wage into your current

account, and then you can use that money on whatever you want, really. The second is a high interest savings account. This

is where you should start building up an emergency fund of 3 to 6 months of your living expenses, just in case something

out of your control happens and your income dries up. It's like when you chug a big pot shield potion on Fortnite, but

keep some minis handy. So, where should you open up these accounts? Well, you need to be looking for banks that don't

charge high fees. I remember I used to get charged for stupid little things all the time. Having these accounts

shouldn't cost you money. I also think you should have two accounts with different banks, as it makes your

savings way less easy to spend. When it's out of sight, it's out of mind. If you're in the UK, then I'd recommend

going with a challenger bank like Monzo for your current account. Now, this isn't sponsored, but their app is

genuinely very good. For your savings account, Chase is a great option, as they're currently offering 4.1% interest

on your money. So, you'll get paid for just leaving your money in the account. In the USA, I'd recommend looking at

Ally Bank or Bank of America, because they offer minimal fees and have really strong online banking service. Number

two, get a credit card. When I was younger, I believed that if you never borrowed, you'd have an amazing credit

score, since you never took out a loan or made any late payments. It makes sense, right? Well,

that couldn't be further from the truth. Taking out a credit card when you turn 18 is the perfect tool to build up your

credit score. You can do this by using your credit card to pay for the things you would normally pay for in cash, like

paying for the gas in your car, for example, and then paying the card off in full every month without fail. Using it

this way will ensure that you never get charged any interest at the same time as building up your credit score. A credit

score is kind of like your Uber rating, but for money. Banks look at this, and then they decide whether or not they're

going to give you a loan. And if they do, what interest rate they're going to charge you. Now, lots of people are

against the idea of getting a credit card, because they're taught from a really young age that debt is bad. I

know this because that's exactly what I was taught. My dad would always say, "Never a lender or a

borrower be." This was a saying that originally came from rich people years and years ago to keep the workers down,

as they knew by borrowing the working class could create wealth for themselves. The rich wanted to keep

getting richer and keep the poor in their place. If I had a credit card when I was 18, it would have been much easier

to get a mortgage sooner and buy my first property. I would have also been able to borrow more money at lower

interest rates. Now, that may not sound significant, but over a long period, like a mortgage, this can really add up.

Number three, open an investing account. The key is to open the correct type of account. You'll often hear people

throwing around terms like Roth IRA in the USA, stocks and shares ISA in the UK, and TFSA in Canada, and supers in

Australia. So, if you don't have one of these accounts, then you're missing out, as they allow you to avoid having to pay

taxes on your investments, but they do have limits because they're extremely powerful. Nowadays, opening an investing

account is very simple, as you can do it all from your mobile phone. A great thing about these investing apps is that

it actually gives you the ability to buy fractional shares. So, rather than having to pay $220 for an Apple share,

you can invest as little as $1. Now, I wish I had this option when I was younger, as it would have allowed me to

get in some early experience with investing without having to take any big risks. One of my favorite investing

platforms is Trading 212, as they offer fractional shares and also stocks and shares ISAs. Since I was planning to

talk about their app anyway, I reached out to them to see if they'd be interested in sponsoring this portion of

the video. They agreed and are offering a free stock worth up to a hundred pound to anyone that uses the code Tilbury

when they create an account. Plus, you can get more free stocks by inviting your friends. Both of you will get a

free share as long as they fund their account. If you aren't quite ready to invest for real, one of the really cool

things about Trading 212 is they let you practice investing with fake money. You can get familiar with the markets using

real data without risking any actual money. So, if you're a little uncomfortable with investing or just

want to try out some strategies before putting your own money on the line, this is a great way to get started. Also,

don't worry if you've already opened an account within the last 10 days. You can still use a promo code Tilbury in the

app and receive your free share. So, feel free to pause the video right now, get your free stock, and then continue

watching. Number four, carefully consider university. So many teenagers have asked me, "Is going to university a

scam?" My answer is always yes and no. On one hand, for some careers, you certainly need to go to university,

like doctors, nurses, and teachers. There is a direct result from doing university courses like this. You get a

degree, and the career path opens up to you. These professions play critical roles in our society, directly impacting

the way we function. So, they're absolutely not a scam. I actually think these types of courses should be free

and reserved for the people with the best grades and passion for following one of these careers. However, on the

other hand, there are a lot of other courses out there that don't open up job opportunities directly. And therefore,

why waste your money, and more importantly, your time studying at university for something you don't

really need? Skill trades like plumbing, entrepreneurship, and tech, well, they don't require a degree. It's more about

how good you are at what you do. Your track record and results will speak for itself. I mean, I read through my

comments on here, and I've seen lots of people claim they've learned more from me than they did in their business

degree. Now, that really says a lot. For me, and for a lot of other employers, it's more about your practical

experience and attitude than anything else. So, please don't be pressured into going to university to study something

you don't care about and waste 4 years of your life. I mean, I heard there's a golf management degree now. How

ridiculous. Personally, I love golf. I just won a major competition called the Duke of Edinburgh Cup. I didn't need to

go to university to learn how to play or manage the game. It's laughable. It really is. Look, if you really don't

know what to do with your life, my advice would be to get an apprenticeship. They were huge back in

my day, and they're coming back and getting more popular than ever. Plus, you get paid while you're learning. It's

a win-win situation, if you ask me. So, while those schools and maybe your mates will try and push you to go to

university, think about what you really want. Think about the 60 to 100k debt that you have wrapped around your neck,

and ask yourself, is it worth paying that off for the whole of your life? Number five, avoid bad debt. Debt is

like a heavy anchor that drags you down, slowing your progress and holding you back from reaching your full potential.

Don't get me wrong, in some cases, you can use debt to your advantage, like when buying a property, for example.

Taking on a mortgage to buy real estate can be a really smart investment, because property can go up in value as

time goes by. By using this debt strategically, you can leverage this borrowed money to have access to these

assets that will hopefully increase your long-term net worth. The same goes for having your own business. If you borrow

money to start your own business and it takes off, you can make some serious profit. Without that initial money, you

might never be successful. I know that was the case for me when I opened up my first radio control model shop. Without

a loan, I simply couldn't have started. However, there is a type of debt you should avoid at all costs, and this is

consumer debt. If you can't afford to buy something outright that isn't going to create wealth, then you shouldn't buy

it. A lot of people finance their cars, and this is just one example of where borrowing money actually leaves you

worse off in the long run. Here in the UK, a shocking 2.2 million drivers finance their cars, and I'm willing to

bet most of them are stuck in this money trap. I understand that you might want to drive a certain car. Now, I love

cars, so I totally understand that. I get it. But, is it really worth it? Just something for you to think about. Number

six, start a side hustle. Most people's advice when you turn 18 is, "Go and get a job." They make it sound so miserable,

and it's like you get no choice with your life. That's what you're expected to do, go to your job and be miserable.

Well, let me tell you, it doesn't have to be this way. You don't have to wake up every morning thinking that you're

stuck and not progressing. If you follow this video so far, you will have some valuable skills, and you can use them to

start a service-based side hustle. This type of side hustle is great. Think copywriting, video editing, videography,

web development, and community management. All of these require very little startup money. You just need to

master the skill inside and out. If you haven't got a high-income skill yet, then you really need to catch up. So, no

matter what job you go and get, leverage it. Use the skills it gives you and the money you make to transform your daily

grind into a launchpad for greater things. Even if you can't learn any skills from it, use it as motivation to

put in the extra work on the weekend to learn a valuable skill and improve your current situation.

Start viewing it like this. Every shift you dread is an investment towards your future. Number seven, invest for the

long term. Compound interest is an extremely powerful law, especially when it comes to investing. It means that not

only will you earn interest on your initial investment, but you also earn interest on the interest that you've

already earned. This can lead to your money growing bigger and bigger over time. It's like when you create that

snowball and roll it down the hill. It just keeps getting bigger and bigger and bigger the more snow that's packed onto

it. For example, let's say you invest $250 a month at age 18 into a Roth IRA or a stocks and shares ISA. Assuming an

average yearly return of 8% by the age of 65, your investment could grow to approximately $1.5 million tax-free.

Now, if we compare this to someone who starts investing the same amount at age 28, by the age he's 65, their investment

would only reach around $679,000 under the same conditions. That's less than half the amount. See, those extra

10 years of compounding really boost the final amount because there's more time for interest to build on interest. So,

the younger you start, the better. Not only will you have time on your side, but you'll also typically earn less at a

younger age, placing you in a lower tax bracket. This means you'll keep more of your earnings because you won't be taxed

as heavily compared to when you earn more later in life. If you want to dive deeper into how to pick the best stocks,

then watch this video next, but don't click on it just yet. Make sure to subscribe if you want to grow your

wealth, okay? I'll see you over there.