We want to help you become an affluent teen so we’ve put together a few ideas to help you improve your wealth and financial achievement.
The BBC recently reported that 16 million people in the UK have savings of less than £100. Another study by Scottish Widows discovered that only a third of the population have a pension and are saving money so they can retire in the future.
These are shockingly low statistics. Levels of personal debt are spiraling upwards and the only thing that stands between your future being full of choices and a lifetime of relative poverty is your ability to make better financial decisions than previous generations.
How to become an affluent teen
There are only two ways to increase your wealth:
- Earn more
- Spend less
Sounds easy right?
Earning more and spending less will definitely increase your wealth. But it’s one of the hardest things to do if you don’t understand how wealth building really works.
Because you are constantly bombarded by clever adverts from companies that are trying to persuade you to give them your money in exchange for their products, so they can get rich and you can experience the short-term pleasure of having something new.
And that’s the problem. Products only provide short-term pleasure, so we feel the need to buy more and more in order to keep getting that good feeling. This never-ending cycle of buying more stuff that we don’t really need is like a disease that has spread throughout the population of the world. It even has a name…
It’s called, “Affluenza”.
Affluenza is the over consumption of materialistic goods, often leading to feelings of guilt, isolation and loss of motivation.
We’ve all been there…
You’re craving that new pair of jeans/trainers or something else, and you ask yourself the question, why not? You may even have spare money to spend. But a small voice at the back of your mind tries to remind you that you’ve already got four pairs of jeans and trainers.
What chance does that voice stand in the face of all that desire stimulated by the relentless marketing machine?
You have the power to think for yourself and make choices
This is the life we all lead. The internet makes it a 24-hour relentless process and, guess what, it’s making us all poorer. Welcome to affluenza.
The truth is we need very little to be happy. Essentials include food, water, a comfortable shelter (most of us call that a home to live in!), and the love of your nearest and dearest.
Materialistic cravings for things like the latest designer clothes, smart phones and such like, are often conditioned into us by the manipulative marketing techniques of the companies that sell them.
We’re not saying you should never buy those things. But you do need to take control of your spending and learn to make better buying decisions than most of your elders.
The # habit of the richest teenagers
Have you heard the old phrase, “All fur coat and no knickers”?
Millions of people fall into the trap of trying to have a superficially great appearance that is contradicted by the reality of their pathetic bank balance. They try to make themselves look wealthy by purchasing expensive things, but all they are actually doing is driving themselves further and further into debt.
The richest teenagers understand that being rich isn’t about how you look or how much you earn. It’s about how much you keep.
As Jim Rohnonce said, “When you earn a dollar, don’t spend the whole dollar.”
You’ve got to develop the habit of saving at least 10% of all the money you ever receive. If you can save 20%, 30% or more, do it.
Why save money?
It’s important to save money because it gives you security and freedom. The more money you have, the more choices you have about where you live, where you work, where you go on holiday, when you can retire. The list goes on and on.
Finance experts say changing your life chances can be as easy as putting that first coin in a jar. It’s the start of a savings journey that can lead to thousands and even millions in your bank account. All you need is the vision to see past that pair of jeans or trainers and make the investment in your future instead.
Affluent teenagers are careful and thoughtful investors rather than money-wasting consumers. That may sound boring but once you become used to checking the monthly growth in your bank account, it begins to dawn on you that slowly-but-surely you are achieving financial freedom.
Tip: Use a website like Calculator.net to work out how your funds can grow to become something special over time.
Learn what it takes to become one of the richest teenagers
Reading books by financial experts is one of the best ways to equip yourself with the knowledge and skills you’ll need if you want become wealthier in the future. We recommend the following titles:
Our next blog will feature celebrity money makers who have grown rather than squandered their wealth – and have better lives for doing so.
Please share your money-savings advice in the comments section below.