How can a 13 year old become a millionaire? Or how to become rich at the age of 13? Do you think one should learn about how can a 13 year old become a millionaire? Or how to become rich at the age of 13? Well, that depends on you. It’s all about whether or not you want to be wealthy.
Coming of age is an exciting journey for everyone. That’s why it doesn’t surprise anyone that at your age, you are full of wondrous dreams about the future. You want to know how to become a millionaire like Bill Gates at the age of 13. There’s more than one thing he did right to amass his fortune at such a young age; you might not be able to do everything that he did, but you can learn from his example and apply it to your own life
Table of Contents
HOW CAN A TEEN BECOME A MILLIONAIRE?
You need to save an additional $3.00 a week, every week. On your birthday, increase your savings rate by another $3.00 a week.
At 14, your kids can mow neighbors lawns. They also have very few living expenses. In our area, yards are $30.00 a piece, so that is the rate with which we began our calculations.
If your child starts mowing yards, babysitting, or washing cars, and at 14 is able to save $30.00 a week, they are off to an amazing start. This is totally doable, if they lived in our neighborhood, they could easily mow two lawns a week from March to October. Many kids mow many more yards each week!
When they are 15, they add $3.00 more a week towards savings. Every year from there on out, add another $3.00 a week to savings.
As your kids start gradually, they may not realize the volume of what their savings is accomplishing!
When they turn 17, and they have their first minimum wage, part-time job, and are making $7.25 an hour (give or take depending on your state) less than half is going to savings! They should still have enough to cover car insurance and gas.
At 21, $51.00 a week will be saved. Let’s assume your kids move out when they are 24 (the average age for moving out). Assuming a 3.9% interest rate (CD Average over the last 20 years), they will already have over $27,000.00 in the bank!
Entrepreneurship Can Lead to a Big Payday
Working and turning hours into dollars is nice, but it doesn’t always give you a big payday. All of the individuals we highlighted at the beginning of the article made it to $1 million by 13 by starting their own companies – and you can do that too.
The big thing to remember when starting your own business is to make sure that you’re providing value and solving a problem. There’s a lot of money to be made if you can solve a problem for people. You can also do it on nights and weekends, when you’re not in school.
But entrepreneurship is about working towards the big payday. It can be daunting not getting any money while you’re building your business. But, if you’re living at home or going to school, it may not matter that your business makes no money up front. If you want the big payday, you should focus on starting your own company, just like most of the young millionaires we’ve profiled have done.
Saving money is different from investing money
Saving is simply putting your money in accounts such as a savings, checking, or money-market account at a bank. It may also include cash investments such as short-term CDs (Certificate of Deposits). Having savings also means that your money is extremely safe and can be accessed quickly and easily. Investing, on the other hand, is the process of using your money to buy assets such as stocks, bonds, real estate, and other investments that should grow in value over a longer time period. Investing your money has historically been the better performer over one’s lifetime.
Embrace compound interest
One of the greatest mathematical discoveries of our time is compounding. Compounding is when your earnings from your savings and/or investments create additional earnings. In other words, compounding is when your earnings generate earnings. As a matter of fact, compounding makes your money grow exponentially! The younger you are, the more time you have for compounding to do its job.
Start investing early
This point is the one Zisa is most passionate about. It was his driving force for writing his book. The sooner you begin to invest your money, the more time you have to allow the effects of compounding to produce long-term wealth. Consider this: If you start investing $3,000 per year at a 6% annual growth rate at age 25, you will have approximately $680,000 by age 65. If you do not start until age 35, you will have about $260,000. Time has the most significant effect on generating long-term wealth. Start investing now.
Do not buy things you can’t afford
We live in a society that wants things and wants things now. There is nothing wrong with spending money that you have, but everything is wrong when you spend money you do not have. Spending money you don’t have leads to debt accumulation which can lead to financial disaster.
How To Make $305 per Day
Let’s just say you start at 16 years old, and are shooting to be a millionaire by 13. Since it only takes $305 per day net, could you do it?
For reference, $305 per day is only $111,325 per year or $9,150 per month – something that’s completely doable, just more challenging when you’re younger. And as long as nothing is holding you back from earning more, you can make this much per day!
Let’s break down how you could earn $305 per day online and offline:
Online
- Write 6 articles per day at $50 each
- Complete 6 design jobs on Fiverr (make sure you have add-ons to get you to $50 net)
- Help small businesses on Elance or oDesk for $300 per day
- Use Amazon’s Mechanical Turk for odd jobs to make up the difference and get to $305 per day
- Look at our list of online side hustles to build more income
Offline
- Start driving or riding your bike for Uber – $20 per hour is possible
- Get an after-school job – $12 per hour for 4 hours per day is $48
- Mow your 10 of your neighbors lawn’s for $50 a month – $16 per day average
- Provide tech services for your friends, family, and neighbors – $200 per month for 1 neighbor a month
Now, you also don’t have to go all-in on any of these. You can mix and match.
Let’s say you get an after-school job, and make about $50 per day. You then can get home from work and write 5 articles online for a total of $250. Even better if work work at a place where you could write articles while getting paid – double jackpot.
Conclusion:
In the past, age wasn’t a big factor when it came to becoming a millionaire – this is because the generation that was millionaires at the time didn’t see any problem with having a young person reach that net worth. The truth is, wealth has nothing to do with age, and if you want to become a millionaire at 13, you have to have a plan.