The speaker discusses a series of steps for teenagers to follow in order to become financially successful. The steps are:
1. Decide how much of your income to invest: This could be a small percentage, such as 10-20%, but it's important to start early and develop this habit. This will help you build a substantial investment portfolio over time.
2. Ensure the invested money is kept away from you: This means setting up an investment account and not touching the money in it. This could be done with the help of parents or by setting up an automatic transfer from your bank account to your investment account.
3. Get a credit card: Use it responsibly, spending a small amount each month to build your credit score.
4. Set up the infrastructure to invest: This includes setting up accounts on platforms like Robinhood, Wealthfront, or Coinbase, and learning how to transfer money from your bank to these accounts.
5. Understand that investments are for preserving wealth, not necessarily for making you rich: They provide stability and security for the long term.
6. Start a business or a side gig: This can help increase your income and provide a source of passive income. The speaker recommends watching a step-by-step guide on YouTube on how to build a $100k a year online business.
7. Live below your means: This means spending less than you earn, but it doesn't mean living frugally. It's about being responsible with your money and protecting your future.
8. Increase the percentage of your income that you invest as your income grows: This will allow your investments to compound over time, leading to significant wealth accumulation.
9. Finally, live off your investment portfolio: This is the ultimate step towards financial freedom. Your investments should provide enough income to cover your lifestyle, allowing you to focus on other aspects of your life.
The speaker emphasizes that these steps are not impossible and that anyone, regardless of their age or current financial situation, can follow them to achieve financial success.
1. The video outlines steps for young people to become millionaires, with the speaker having reached $10 million in investments by age 21.
2. The first step is to decide how much of one's income to set aside for investment. The speaker emphasizes that this doesn't need to be a large amount, even as little as 10-20% can be beneficial in the long run.
3. The second step is to ensure the invested money is kept separate and not accessible. This could involve setting up a separate bank account or using a service to hold the investment money.
4. The third step is to set up the infrastructure to invest. This could involve setting up accounts with platforms like Robinhood, Coinbase, or Binance.
5. The fourth step is to start a business or freelance gig to increase income. The speaker shares their own experience of starting an advertising agency at 16 and building it up to a significant profit by 21.
6. The fifth step is to understand that investments are not for instant wealth, but to preserve and grow wealth over time.
7. The sixth step is to live below one's means, but this doesn't mean having to live frugally. It's about proportional spending based on one's income.
8. The seventh step is to increase the percentage of income that is invested as income grows.
9. The final step is to live off the income generated by the investment portfolio, achieving a sense of true financial freedom.