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Investing Money as a Teenager

By Edited Mar 7, 2016 2 1

Making more money is not a simple task. You have to find someone willing to pay for your services in most cases. As a teenager, it gets even harder because you don't have many skills or much education. If you want to make more money on the side without working, an excellent way to do this is through investing. As a teen, you can do this too and do very well.

If you want to invest at a young age, you might need to get a custodial investment account. If you are old enough, usually 18 or older, you can get your own account. A brokerage account is necessary in order to buy investments such as stocks and bonds.

You should start out with simpler investments types that you can understand. Instead of choosing options and futures, try stocks and bonds. Learn all you can about stocks or whatever investment type you are choosing to invest in. If you don't understand what you're doing, you are just gambling which is very risky and not recommended. You will need to understand diversification as well. If you don't properly diversify your investments, you are adding undue risk to your portfolio as well. Diversification means investing in several different investments.

Learn about stocks and how to invest in them. Learn how you can earn from them, where to buy them, how to choose the right ones to buy, etc. This will take some time and effort on your part. If you are interested in getting in the investing game as fast as possible, invest in mutual funds. This is like letting someone else who is better qualified choose your investments for you. A mutual fund is when you pool your money together with other investors and a large quantities of securities are chosen. You then own a portion of that portfolio. You can invest in mutual funds now and then choose your own securities when you know more about how to research.

If you don't have any money to invest, get some. Get a part time job to work during your free time. If you already work, take just a little bit of what you make from your part time job and put it into investments. Even if you can only afford to invest $20 a month, it will grow and grow. By the time you retire, you'll have a lot of cash, or you might use it before then. It is up to you because it is essentially your money.

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Comments

Dec 7, 2009 3:04pm
A1m0s
"Even if you can only afford to invest $20 a month, it will grow and grow."
Great advice.
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