People say money doesn’t grow on trees – which is true. However, you can still grow money while you sleep. The seeds for that is your cash!
Do you have some cash lying around in a jar or envelope somewhere? If your answer is yes, read this blog, and be inspired on how you can start growing your money while you sleep.
Why should you start investing as a teen?
When you start investing early in your life, you won’t become a millionaire overnight, or even before you 20 (but that is possible!). It will help you to start building good money habits. In a few years, you will see how much the money you put into your money tree grew and you didn’t have to do much to get it.
There are a few ways to turn your cash into a money-growing tree. One of them is called “investing” and this is what I will be talking about today. I have been investing for almost two years, and in this post, I will explain what I learned so far.
What is investing?
Investing is buying an asset you believe will grow in value and give you more money than you bought it for. Basically, you buy something so you can sell it when the price goes up and make money off your money! Let me give you a few examples of assets you can invest in.
What are assets?
1. Stock
One asset is stock. When you invest in stock, you purchase a very tiny piece of the company you’re investing in. Those tiny parts are called shares. Some stocks pay dividends, which is basically the company you invested in paying you for investing in them. It’s normally a pretty small amount of money, but it can definitely add up if you hold that stock for a long time, or if you own many shares.
2. Precious Metals.
Another asset is precious metals. Some of the metals are gold, silver, platinum, and palladium. You purchase a certain-sized metal coin or bar. Precious metals are good to invest in when you’re saving that money, or you’re holding onto that metal for a while. This is because its price doesn’t go up or down much over a short period of time. If you want to make a profit off precious metals, you have to hold onto them for a loooong time. If you are young like me, then this is the best time to invest in precious metals.
3. Jewelry & Artwork
I have been creating and selling my jewelry and artwork for a few years and that’s how I have been able to get some of the cash to invest into other assets.
If I was more famous someone could buy my artwork and hold it for years hoping that the artwork will go up in value with time so they can sell it for a lot of money.
Artwork of famous artists like DaVinci or Picasso are very expensive. For example, the most expensive artwork in the world is worth $450.3 million. It was painted by Leonardo da Vinci.
There are more assets to invest in, like cryptocurrency and real estate, but I don’t know anything about those, so I won’t be talking about it yet.
How I started investing.
I started investing my money about a year and a half ago when I was 12. All the money I had made from the business fairs, helping my mom, and gifts were just sitting in a jar losing value. With some adult help, I got all that cash into a Charles Schwab account and started investing it!
The first thing I bought was a share of Amazon. I made over 50% on it in 8 months. Making just 7% back is really good to do in a year, but I made even more in less time! It was pretty cool.
This first investment made me happy and curious about investing. I sold my Amazon to invest the cash into other stocks with better options. I’ll go into more depth about what I’ve bought and how much I’ve made in a future blog, so make sure to subscribe if you wanna read that!
Come back soon!
It’s best to start investing and planning your financial future while you’re young. If you don’t, you’ll become an adult and be confused and uncertain of what to do and what you want. Planting this financial seed earlier means it might already be a strong and stable tree when you become an adult. Come back soon to read more about my financial journey!
