Hi guys it's mark so today is going to be a really special video, as i'm going to be breaking down the exact spending and saving strategies that allowed me to become a multi-millionaire and they may help you do the same in the future. I'm going to separate these into age groups, so you're able to see how each stage gradually builds upon the other. These are all things that i've personally done, as i believe in walking the walk and not just talking at all. So when you're relaxing in your mansion worth millions make sure to come back to this video and hit that thumbs up button, nearly 63 of people go through their life paycheck to paycheck, and this is probably because they were never taught the correct way to manage their Money.

My aim for this video is to give you all the tools you need to be able to get ahead of everyone else. So, let's start off with 13 to 18 year olds. In my opinion, these early years are some of the most important because every dollar you have at this age will be worth 10 in 30 years time, when i was given money for birthdays christmas or even cash from washing people's cars, i'd always make sure to save 50 of it now i know that sounds like quite a lot. Obviously, it's not always possible when you're older, to do that, but usually as a teenager you're living at home, which means your expenses are incredibly low.

In fact, my dad was always banging on about it. He said this is like living in a hotel for free all your cooking, washing heating and bills. They're all taken care of - and you know what he was right - saving became a massive habit for me and it was just something i did without really even thinking about it. When i was younger, i opened up a high interest.

Savings account to grow my money back then the interest they paid was a lot better than it is today. However, now there are more options for teens to be able to invest something great that wasn't available when i was younger are custodial accounts in the usa and junior isis in the uk. These allow you to put your money into the stock market with your parents. Permission of course, and if you were to invest in let's say the vanguard s p 500 index fund, you can historically expect an average return of seven to ten percent tax-free at this stage, all you want to do is get a taste for investing it's not about Putting all your money into the stock market as there are so many more useful things that you can do with it.

I always think it's important to have hobbies and they can often turn into ways of making money if you're a little bit clever about it. My son loved creating videos when he was younger, so i encouraged him to buy camera equipment and keep improving his skills. Those small investments in his hobby when he was younger, have helped him travel all over the world and filming for people like red, bull and even filming these videos. For me to be fair, this is probably the highlight of your career.

Isn't it curtis? Of course it is dad this is great fun. The real moral here is not to be scared to spend money on the things that you love, as they have a much better return for you. You don't just want to limit yourself by locking all your money away in the stock market. Building a good credit score is also extremely important if you ever want to buy a car or a house in the future.

Now lots of people think you can't do anything about this when you're under 18, but you can actually become an authorized user on your parents. Credit card and you'll be able to start building your credit from a very young age wherever you go, make sure to ask for a student discount, even if they don't openly say that they give a discount you'll, often get one, and this really adds up and gives You extra money to save and invest into the things that really matter to you. You also have to make one of the biggest financial decisions in your life in your teens and that's whether to go to college. I chose to do an apprenticeship as a carpenter instead and because of that lots of people think i'm against it.

However, that's not entirely true, i think college can be a real smart financial choice if you go into it with a plan, and you know what degree you need to get to get to the next stage of your life and earn a higher income, you really want To avoid getting into lots of debt that just limits you in later life and is a constant drain on your finances college is a big investment not only in money but also in time, so think, good and hard. Now, let's move on to 18 to 30 year olds, this is when the habits i formed when i was younger, really came in useful. It's so easy to make mistakes at this stage, as people might finally have some decent income and want to live in the moment. Rather than thinking about the future now this is proven by the fact that 44 of americans don't have enough cash to cover a 400 emergency.

Now, you're 18, you can pick up a free stock from the social media, investing platform public when you deposit, one dollar or more on the platform i'll leave a link in the description below. If you want to check that out. This is also a great time to pick up a credit card. The sooner the better, like i said before, having a credit card and paying it back in full by the end of the month is great for building credit.

I used to just use mine for gas, which wasn't very much so my usage was really low. It's all about demonstrating you're able to take care of your money. The sooner you get a credit card, the longer the line of credit you'll have - and this is a big factor when determining your credit score, when you're over 18 you're allowed your own checking account, which is really really useful, i like to think of it as a Base for all my money, everything should go into the checking account and there you can split it off into a variety of different places. First, i made sure to build myself an emergency fund of three to five months of my living expenses.

Obviously, it's a good idea to live at home for as long as possible as it will keep all your expenses really low. However, i didn't have that privilege, so i needed some money that was easy to access in the event of an emergency. This means it shouldn't be tied up in the stock market. It needs to be just sitting in a high interest account.

I actually did have to use this once when my water heater went bang. If i didn't have an emergency fund, then i would have probably had to take out a payday loan and that's never a good idea. Next, it's really important to set up a roth ira in the usa or an isa in the uk. These accounts allow you to invest in the stock market and avoid paying any taxes on profits you make they are so powerful.

They actually limit the amount of money you can deposit each year. So it's really important to take advantage of these as soon as possible. During this time, i also got very good at knowing what was a need and what was a want, and what i mean by this is, i prioritized all the necessities like food and rent, and i stopped myself from buying too many luxuries until i had contributed to My investments and paid off any debt that was hanging around my neck. This is also around the time i started looking into more investments like individual stocks, real estate and now cryptocurrency.

I always think it's important to allocate a small amount of your portfolio to fun, educated guesses and that's what i've been recently doing with the cryptocurrency. I started this style investing when i was between 18 and 30, and i've certainly had some big wins from some really small gambles, while you're young, you can afford to make some mistakes as there's plenty of time to make it back again. If you feel your money won't stretch this far, then this is why you need a side job. It can be so useful.

I used to have three of them. My wage would cover my lifestyle. Then i could save or invest everything else. Next, up is 30 to 40 year olds.

This is when the responsibilities really start to pile on shockingly one in four americans admit that they don't pay their bills on time, leading to debt and bad credit. If you've managed to follow these steps up till now, you may be in a position to buy your own house. Now. Lots of people make the mistake of thinking.

This is an asset when actually it's a liability, an easy way to tell if something's a liability is it takes money out of your pocket rather than putting money in a great idea, a lot of people seem to be using is called house hacking and, if you're Able to get a housemate or even buy a duplex and rent out the other side of the house. You can actually cover your mortgage and turn your house into an asset. It's all about thinking of smart ways like this to stretch your money. Further, i switched my focus to real estate investing during this period of my life.

I bought some properties i could rent out, and i knew that when i wanted to retire, all the mortgages will be paid off and i will be left then, with a bunch of cash producing assets. Although i wasn't as focused on it, i was still investing in the stock market, with my tax advantaged accounts into low-cost index funds. These just build up in the background, and i can go months without even looking at them. When i was at this age, i started to get a little bit worried as i was feeling more tired after work.

I finally realized i wasn't superman and one day i'd have to slow down. This is when i started to get really interested in passive income and making sure that everything could run perfectly without me even being there. We have already talked about real estate, but there are lots of different ways to produce passive income with the internet. I've actually done a video all about this, so feel free to go and watch it afterwards.

If you're doing well, then you'll start to notice people asking you for financial help. Now, there's nothing wrong with that. But one thing i would say is never co-sign or lend any money, as this is the fastest way you can ruin a relationship. Think about it.

The bank requires someone to co-sign for a reason if that person doesn't keep up to date with their payments, the bank's going to come after you when people see you're doing well, they will try and leach off your success, it's great to help where you can, but It's your job to make sure that you stay on target now, for when you're, old and gray like me, yeah you've got it 50 plus at this age. It's a good idea to change things around a little bit. Shockingly 33 of american adults have saved zero dollars for retirement - it's not too late to start, but ideally this should be the time to start moving your investments to lower risk asset classes such as bonds and wrapping up your mortgages. The aim is to have fewer worries and more security.

If i were to lose all my money at this stage, it would be very, very hard to recover. I say this, but it's all down to your own personal risk tolerance. My financial position allows me to enjoy play in the markets and having fun with my investments, but i still never invest more than i can afford to lose. So i'm going to leave the next video up.

There. Don't click on it. Just yet remember to subscribe to the channel. If you want to grow your wealth, all right, i'll, see you over there.