How to Become a Millionaire at 14 – Everyone wants to be rich. Who wouldn’t want to have more money? One of the most popular TV shows right now is called “How to get rich as a teenager”. This show describes exactly how you can acquire a great deal of wealth by just being a teenager. In the article, I will tell you how you can do it. And it won’t take anything from you but a little bit of your time.
How is it possible to become a millionaire at 14? Follow these 3 hints to learn about the tv show for becoming rich as a teenager. These will help you know about the secrets of this show as well as give you some tips on how you can actually become rich as a teenager online. This article consists of many fun strategies that can help you become a millionaire at 18!
Table of Contents
The First Million is The Hardest
All it takes is one eureka moment and the courage to follow through like you’ve got nothing to lose. Luckily for these teenagers, there isn’t much to lose since they aren’t exactly venture capitalists, which is probably the secret to cracking the puzzle. A fresh perspective on the world can see new qualities and colors that the older and more experienced minds may not notice.
After all, teenagers rarely have to worry about paying the bills or supporting a family. This means that they have the time and mental resource to dedicate to starting and growing a successful business.
How Can a Teenager Become a Millionaire?
How is a teenage millionaire even possible? We’ve all heard plenty of success stories of teenagers, but when we think of how we behaved at that age, being a millionaire at 15 seems like fantasy. Besides, most teenagers aren’t even old enough to get a job.
As such, when we hear about teenage millionaires, we often get suspicious.
Young people today get a lot of negative press. You’ve probably seen a hundred articles about how they spend all their money on brunch, or they’re destroying the automobile industry by preferring sustainable transport.
In reality, today’s youth are probably the most highly educated, skilled and hard working generation there’s ever been. In terms of the economy, young people are fighting an up-hill battle, with lower wages, worse working conditions, and higher costs of living than their parents’ generation.
As such, teenage millionaire stories are just like any other rags to riches story.
That is, they’re stories of hard work, graft, innovation and clever solutions to market problems. These exact same principles apply to how to become a millionaire entrepreneur at any age.
To see how this plays out in practice, let’s take a look at some amazing successful teenage business stories.
Getting Teenagers Started on Their Millionaire Journey
Becoming a millionaire is really a lot simpler than it seems. I believe we overthink it and over complicate. While some people are pushing get out of debt and get on a budget, I believe the most important step is simply believing you can do it (make the millionaire choice), and getting started (get your money moving in the right direction). While I love a detailed millionaire plan, you can get your teenagers started with a “baby millionaire plan.” A baby millionaire plan is pretty simple and includes 3 things.
Step 1 – Simple money framework for teenagers. Don’t over complicate money principles for teenagers. Give them something simple that they can follow. A simple plan for teenage money is 30% spending, 30% saving, 30% investing, 10% giving. This helps your teenager learn to live on a limited amount of money (spending), develop a habit of saving for emergency needs or larger purchases (saving), investing (building wealth), and giving (helping others in need and serving God). This basic financial model is something your teen can take into their adult life.
Step 2 – Develop a Millionaire Mindset by Investing Early. Rather than focus on budgeting, help your teen focus on investing. Once they understand the principles of investing and building wealth, you’ll find that they will shrink their budget to accommodate their investing habits. By putting 30% of their income into investing, they are automatically tightening their budget by 30%, and they are light years ahead of everyone else their age. If they keep that 30% as adults, they’ll quickly reach their millionaire goal. The average American has a negative savings rate, and many financial advisors advocate for a 15% retirement investing rate. At 30% your teen is exceeding all the averages.
Step 3 – Get Their Retirement Started Early! Start a Roth IRA for Your Teen.
As a parent, you can jump start your kids retirement by setting up and funding their Roth IRA. As long as your child works and has earned income, you are allowed to fund their Roth IRA up to the amount of money they earned or the Roth limit whichever is lower. For example: If your teen earned $1,000, you can fund their Roth IRA for $1,000. If they earned $5,500, you can fund their Roth for up to $5,500. A good way to get started is with a low fee Index fund like an S&P Index or Nasdaq Index fund through Vanguard.
This is an extremely powerful opportunity to impact your child’s financial life since $10,000 invested in a 10-12% growth stock mutual fund by age 18 can mature in $1,000,000 at age 65. Whatever amount you decide, it will help get your teen interested in investing and improving their financial future.
The trick with all of these principles is to get your teen interested in investing and building wealth. Once they get a taste and vision of what this could mean for their future, they’ll be all-in. You’re just getting the fire started!
You Can Be an Everyday Millionaire
When you think of the word millionaire, you probably think of an older gentleman (or woman) sporting a fancy suit—pocket square included. Or you might think of people like Jay-Z and Beyoncé with their cool clothes and private jet.
No matter what you see, it’s probably safe to assume that more millionaires are older rather than younger. But don’t assume that just because you’re young that you can’t start working toward that goal. In fact, the National Study of Millionaires found that “if members of younger generations are diligent over time, they can become net-worth millionaires in their own right.”
Millionaires view investing as the primary tool for building wealth and securing financial peace. In fact, 80% of net-worth millionaires in the study said that investing in their employer-sponsored retirement plan was the main way they reached millionaire status.1 Meanwhile, 74% mentioned investing outside the company plan, and 73% mentioned the habit of saving money regularly.2
What can you do? Start early. Start now. And if you’re not in your 20s—that’s okay. It’s never too late to start—even right now.
What You Can Do Now
The best thing you have on your side is time and good money decisions. You can choose to not go into any debt—not even for college. And that decision alone will put you way ahead of the game.
Think you might want to go to that fancy private school? Think again. Sure, you might look good when you’re wearing the sweatshirt, but is it really worth it? (Trust us—it doesn’t matter as much as you think it does.) The worst thing you can do to your future is get buried in payments before you’re even out of your parents’ house!
We believe in you (and your future). Don’t get caught up in the lie that the only way to go to college is with debt. It’s possible to get a debt-free degree. Check out Anthony ONeal’s book Debt-Free Degree and learn how you can go to school and chase after your dreams while leaving debt in the dumpster.
And before you start investing, you’ve got to start saving and paying off any debt you may already have—then you’ll be ready to start investing. Yup, we’re talking about the 7 Baby Steps:
- Save $1,000 for your starter emergency fund.
- Pay off all debt (except the house) using the debt snowball.
- Save 3–6 months of expenses in a fully funded emergency fund.
- Invest 15% of your household income in retirement.
- Save for your children’s college fund.
- Pay off your home early.
- Build wealth and give.
As you probably noticed, there are some steps on there you might not be ready for yet. But don’t let that stop you from focusing on Baby Steps 1–4! Since you’re still living under your parents’ roof, talk to them about what a fully funded emergency fund would look like and how much you should start investing . . . when you’re ready.
Imagine what your future could look like if you started today! Talk to your parents or teachers about your dream of becoming an everyday millionaire. Ask them how to start investing now.
Conclusion
“How to get rich as a teenager” is a question that many teenagers ask themselves every day. Unfortunately, it’s not that simple to become a millionaire at 14 or 16 years old. However, the honest answer to the question is you don’t want to become a millionaire in your teenage years. Instead, what you should be doing in your teenage years is investing in yourself . Make yourself an attractive person in the future. Some of the most successful people in this world know from when they were young about their million-dollar idea and started working towards making it a reality when they turned 18 or 19 years old).