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How To Save & Invest Your Money at EVERY Age! - YouTube
Channel: Mark Tilbury
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hi guys it's mark so today is going to
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be a really special video as i'm going
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to be breaking down the exact spending
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and saving strategies that allowed me
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to become a multi-millionaire and they
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may help you do the same in the future
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i'm going to separate these into age
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groups so you're able to see how each
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stage gradually
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builds upon the other these are all
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things that i've personally done as i
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believe in walking the walk
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and not just talking at all so when
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you're relaxing in your mansion worth
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millions
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make sure to come back to this video and
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hit that thumbs up button
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nearly 63 of people go through their
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life paycheck
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to paycheck and this is probably because
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they were never taught the correct way
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to manage their money
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my aim for this video is to give you all
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the tools you need to be able to get
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ahead
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of everyone else so let's start off with
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13 to 18 year olds
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in my opinion these early years are some
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of the most important
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because every dollar you have at this
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age will be worth 10
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in 30 years time when i was given money
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for birthdays christmas or even cash
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from washing people's cars
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i'd always make sure to save 50 of it
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now i know that sounds like quite a lot
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obviously it's not always possible when
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you're older to do that but usually as a
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teenager
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you're living at home which means your
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expenses are incredibly low
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in fact my dad was always banging on
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about it he said this is like living in
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a hotel for free
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all your cooking washing heating and
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bills they're all taken care of and you
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know what
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he was right saving became a massive
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habit for me
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and it was just something i did without
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really even thinking about it when i was
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younger i opened up a high interest
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savings account to grow my money
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back then the interest they paid was a
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lot better than it is today
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however now there are more options for
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teens to be able to invest
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something great that wasn't available
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when i was younger are custodial
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accounts in the usa
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and junior isis in the uk these allow
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you to put your money
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into the stock market with your parents
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permission of course
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and if you were to invest in let's say
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the vanguard s p
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500 index fund you can historically
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expect an
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average return of seven to ten percent
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tax-free
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at this stage all you want to do is get
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a taste for investing
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it's not about putting all your money
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into the stock market as there are so
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many more useful things that you can do
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with it
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i always think it's important to have
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hobbies and they can often turn into
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ways of making money
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if you're a little bit clever about it
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my son loved creating videos when he was
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younger
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so i encouraged him to buy camera
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equipment and keep improving his skills
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those small investments in his hobby
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when he was younger have helped him
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travel
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all over the world and filming for
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people like red bull and even filming
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these videos for me
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to be fair this is probably the
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highlight of your career isn't it curtis
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of course it is dad this is great fun
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the real moral here
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is not to be scared to spend money on
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the things that you love
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as they have a much better return for
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you you don't just want to limit
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yourself by locking all your money away
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in the stock market building a good
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credit score is also extremely important
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if you ever want to buy a car
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or a house in the future now lots of
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people think you can't do
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anything about this when you're under 18
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but you can
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actually become an authorized user on
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your parents credit card and you'll be
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able to start building your credit from
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a very young age
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wherever you go make sure to ask for a
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student discount
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even if they don't openly say that they
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give a discount you'll often get
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one and this really adds up and gives
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you extra money
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to save and invest into the things that
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really matter to you
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you also have to make one of the biggest
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financial decisions in your life in your
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teens and that's whether to go to
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college
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i chose to do an apprenticeship as a
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carpenter instead and because of that
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lots of people think i'm against it
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however that's not entirely true
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i think college can be a real smart
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financial choice
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if you go into it with a plan and you
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know what degree you need to get
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to get to the next stage of your life
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and earn a higher income you really want
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to avoid getting into lots of debt
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that just limits you in later life and
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is a constant drain on your finances
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college is a big investment not only in
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money but
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also in time so think good and hard now
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let's move on to 18 to 30 year olds this
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is when the habits i formed when i was
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younger
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really came in useful it's so easy to
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make mistakes at this stage as people
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might finally have some decent income
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and want to live in the moment rather
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than thinking about the future now this
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is proven by the fact that
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44 of americans don't have enough cash
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to cover a 400 emergency now you're 18
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you can pick up a free stock from the
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social media investing platform public
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when you deposit one dollar or more on
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the platform i'll leave a link in the
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description below if you want to check
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that out this is also a great time to
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pick up a credit card the sooner the
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better
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like i said before having a credit card
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and paying it back in full by the end of
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the month is great
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for building credit i used to just use
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mine for gas which wasn't very much so
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my usage
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was really low it's all about
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demonstrating you're able to take care
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of your money
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the sooner you get a credit card the
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longer the line of credit you'll have
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and this is a big
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factor when determining your credit
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score when you're over 18 you're allowed
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your own checking account
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which is really really useful i like to
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think of it as a base for all my money
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everything should go into the checking
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account and there you can split it off
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into a variety of different places
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first i made sure to build myself an
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emergency fund of three to five months
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of my living expenses
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obviously it's a good idea to live at
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home for as long as possible
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as it will keep all your expenses really
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low however
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i didn't have that privilege so i needed
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some money that was easy to access
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in the event of an emergency this means
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it shouldn't be tied up in the stock
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market it needs to be just sitting
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in a high interest account i actually
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did have to use this once when my water
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heater went bang if i didn't have an
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emergency fund
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then i would have probably had to take
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out a payday loan and that's never a
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good idea
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next it's really important to set up a
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roth ira in the usa
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or an isa in the uk these accounts allow
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you to invest in the stock market and
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avoid paying any taxes on profits you
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make
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they are so powerful they actually limit
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the amount of money you can deposit each
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year
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so it's really important to take
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advantage of these as soon as possible
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during this time i also got very good at
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knowing what was a need and what was a
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want
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and what i mean by this is i prioritized
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all the necessities like food
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and rent and i stopped myself from
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buying too many luxuries until i had
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contributed
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to my investments and paid off any debt
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that was hanging around my neck
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this is also around the time i started
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looking into more investments like
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individual stocks
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real estate and now cryptocurrency i
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always think it's important to allocate
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a small amount of your portfolio
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to fun educated guesses and that's what
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i've been recently doing with the
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cryptocurrency i started this style
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investing when i was between
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18 and 30 and i've certainly had some
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big wins
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from some really small gambles while
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you're young you can afford to make some
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mistakes as there's plenty of time to
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make it back again if you feel your
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money won't stretch this far
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then this is why you need a side job it
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can be so useful
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i used to have three of them my wage
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would cover my lifestyle
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then i could save or invest everything
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else next up is 30 to 40 year olds
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this is when the responsibilities really
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start to pile on
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shockingly one in four americans admit
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that they don't pay their bills on time
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leading to debt and bad credit if you've
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managed to follow these steps up till
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now you may be in a position to buy your
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own house
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now lots of people make the mistake of
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thinking this is an asset when actually
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it's a liability
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an easy way to tell if something's a
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liability is it takes money
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out of your pocket rather than putting
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money in a great idea a lot of people
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seem to be using is called house hacking
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and if you're able to get a housemate or
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even buy a duplex and rent out the other
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side of the house
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you can actually cover your mortgage and
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turn your house into an asset it's all
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about thinking of smart ways like this
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to stretch your money further
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i switched my focus to real estate
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investing during this period of my life
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i bought some properties i could rent
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out and i knew that when i wanted to
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retire
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all the mortgages will be paid off and i
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will be left then with a bunch of cash
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producing assets although i wasn't as
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focused on it
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i was still investing in the stock
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market with my tax advantaged accounts
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into low-cost index funds these just
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build up in the background
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and i can go months without even looking
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at them when i was at this age i started
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to get a little bit worried as i was
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feeling more tired after work
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i finally realized i wasn't superman and
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one day i'd have to slow down this is
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when i started to get
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really interested in passive income and
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making sure that everything could run
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perfectly without me even being there we
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have already talked about real estate
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but there are lots of different ways to
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produce passive income with the internet
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i've actually done a video
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all about this so feel free to go and
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watch it afterwards
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if you're doing well then you'll start
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to notice people asking you for
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financial help
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now there's nothing wrong with that but
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one thing i would say is never co-sign
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or lend any money as this is the fastest
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way you can ruin a relationship
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think about it the bank requires someone
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to co-sign for a reason
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if that person doesn't keep up to date
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with their payments the bank's going to
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come after you
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when people see you're doing well they
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will try and leach off your success
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it's great to help where you can but
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it's your job to make
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sure that you stay on target now for
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when you're old and gray like me
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yeah you've got it 50 plus at this age
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it's a good idea to change things around
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a little bit
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shockingly 33 of american adults have
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saved
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zero dollars for retirement it's not too
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late to start
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but ideally this should be the time to
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start moving your investments
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to lower risk asset classes such as
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bonds and wrapping up your mortgages the
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aim is to have fewer worries
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and more security if i were to lose all
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my money at this stage it would be
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very very hard to recover i say this but
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it's all down to your own personal risk
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tolerance my financial position allows
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me to enjoy play in the markets and
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having fun with my investments
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but i still never invest more than i can
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afford to lose so i'm going to leave the
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next video up there don't click on it
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just yet remember to subscribe to the
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channel if you want to grow your wealth
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all right
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i'll see you over there
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