Being a teen is a double-edged sword when it comes to investing. On the one hand, you have all the time in the world to secure your financial future. On the other hand, you generally don’t have any idea how to invest or what steps to take.
Before you touch your first dollar, you must understand the mindset and gain an investor’s perspective. How do you do that? Well, our four mindset shifts will help you work on yourself to build the right mindset for your personal financial growth.
#1 Developing A Fast Lane Mindset
The first one is “Developing a “Fast Lane” mindset. What is that? Well, it comes from the book by “MJ DeMarco” called “The Millionaire Fastlane,” which is a must-read. He talks about the reality of what it takes to get rich. It doesn’t happen overnight. It is the result of being diligent and consistent with your money.
It isn’t the sexy, glamorous world of overnight YouTube Creator success stories or social media influencers who bank millions through sponsorships. Believe it or not, if you have the right approach, you can end up way ahead of the game by the time you enter the quote and quote “Real World” after school.
Also Read: Best 5 Tips On Money Management For Teenagers
But this also speaks to the importance of building your wealth through educating yourself. Some amazing books out there will guide you through developing the right mindset with money. Also, remember the thousands of Podcasts, Blogs, YouTube Videos, and much more. There has never been a better time to surround yourself with excellent material to develop your financial intelligence.
#2 Building In-Demand And Profitable Skills
No, this isn’t just about getting a job. We all need a “Job” to pay for our smoothies and your share of last night’s Uber ride. It is about developing specific skills that pay way more than being a Starbucks, Barista or waiting tables at Applebees.
For example, If I told you that you could learn the core skills of “How to build a Website in a Weekend,” would you believe me? It doesn’t matter if you believe me because it is true!
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HTML, the core language of a website’s structure, can be learned in a couple of days. CSS, the code that styles a web page, can be learned in a week or two. Within a month, you could know enough to start building your websites. And that if you learn to code, you can learn “How to build a Website even faster” without code, using Content Management Systems like WordPress or WebFlow. And this is a skill you can develop and charge a decent penny for. I’m talking a few thousand dollars for each website. Can you imagine your earnings if you built a half-dozen websites over a year?
And that is just one example. It’s okay if web design isn’t something that floats your boat. There are other skills out there you can learn – For Free – Online.
Also Read: Guide To Investing in Dividend Stocks For Passive Income
The main idea here isn’t to start learning Web Design, specifically. The idea is that you should always look for opportunities to learn new skills. Whether that is Web Design, Graphic Design, Social Media Marketing, Article Writing, or something else – there is an abundance of ways you can earn extra cash that you can directly put to work for you through the power of investing.
#3 Build Good Habits
The third mindset tip is to “Build Good Habits.” I know; you’ve heard this one before. But with Finances and Investing, what you do regularly – day in and day out – is the biggest determination of whether you build wealth for the future. A few specific habits influence how easily you can build wealth.
1. Tracking Your Expenses
Fortunately, this isn’t something you have to figure out on your own. “Great Apps” and services can help you with this. Check out “Mint” at “mint.com.” It helps you keep track of everything you spend and progress towards specific financial goals. It is one of the market’s best Personal Finance and budget trackers. But even if you’re not comfortable with technology, that’s okay.
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Write it in a notebook. Keep track with a spreadsheet. The main point is that whatever you track is what you can improve. But you can’t build wealth if you don’t know what you’re spending money on or you don’t have a clear understanding of your net worth.
2. Take Care of Your Health
I know; You’re young and healthy now. You feel indestructible. Well, things start to change pretty dramatically once you hit your 20s. If you don’t get in the habit of taking care of your health and fitness now, it only becomes harder down the road. And then, your mental state is directly influenced by your physical state. The healthier you are, the wealthier you can become. And we haven’t even discussed long-term health care’s high costs!
3. Live Below Your Means
It probably sounds like a major drag. But this isn’t about sacrificing fun; it is about using your money efficiently. Every experience in your life doesn’t correspond to a dollar amount. You can have awesome adventures without spending a penny. Being frugal isn’t about living the life of a monk; it is about putting some things off until a later date. Without a doubt, the hardest habit to master is the ability to delay gratification. If you can master this skill, it will profoundly impact your ability to build wealth—even more than anything else.
Note this sentence: “Patience Equals Profit And Waiting Equals Wealth.” Now, write that on a piece of paper and stick it on the wall next to your bed. Your future self will thank me.
Also Read: 8 Investment Mistakes Beginners Should Avoid in Stock Market
The main point of these three habits is: “Start Small And build the habit over time. You have time; use it to your advantage.
#4 Consider Not Enrolling in College
Finally, mindset tip four is to “Consider Not Enrolling In College.” Some of you just started leaving this article, but let me explain what I mean. There is nothing wrong with higher education: it is wonderful. But going to a university just for the sake of going and not having any idea what you’re doing isn’t the way to go.
You go for four or five years, racking up tens of thousands in debt, and are forced to take the first job you can find to start paying it all off. It is a horrible cycle that needs to end. Instead, have a plan; if College is where you need to go to fulfill that plan, then all the power to you! But if not, consider postponing those four years to figure out what you will do with your life. College can be an incredible opportunity, but you don’t have to let it become a burden on you and your family. Plus, there are other ways to get a degree.
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Never Be Too Late To Start Investing
There are free programs where you can simultaneously earn an associate’s degree at a community college while finishing high school. That way, when you graduate, you are already halfway finished! Don’t spend an obscene amount to figure out what you want to do. Figure out what you want to do first, and then spend strategically to make it happen in the best way possible. Otherwise, you’re driving a gas-guzzling car around the country with no idea where you are going.
You will never have as good an opportunity to set yourself up for financial success as you do now. If you play your cards right, you could be retired by the age of 30.
Also Read: Index Funds: Best Way to Start Investing for Beginners
Of course, you need to learn “How to Invest your Money?” This article has been all about your Investing Mindset. About Investing, we’ve already many articles to learn.
