# New teenager to the investment market needs help!



## pineapple1 (24 June 2015)

Hi everybody,

I am new to this forum so please let me know if I'm in the wrong place 

I am a 15 year old student I have recently acquired a new passion in investment and money making. I have done some research on how to invest on ASX and am currently reading some books. "How to win friends and Influence people," "Freakanomics," and "The intellegent investor." However I believe I am too young to invest on the market (please correct me if I'm wrong). Also in some ways too foolish lol. That is why I am here 

I know there are many different ways to invest and many different things to invest in. I am willing to put in a maximum of $500 for a mixture of long time and short time investments. I am also open up to other forms of money making, not just investments.

I am happy to try/invest in many different things and also open to suggestions. Please hit me up with any types of ideas 

Thank you all.

P.s I love reading so any recommended books or articles will also be appreciated.


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## systematic (24 June 2015)

That's awesome!  Keep that interest in investing up and it'll pay off!

Others will have different advice.  Mine, off the top of my head:

- save that $500.  
- become great at spending less than what you receive (gifts, job money, pocket money etc).  become a great saver.
- at your age, think about earning.  there's always stuff you can do.  be entrepreneurial.  read blogs etc for ideas. there's definitely things you could come up with to earn extra dollars.  keep a chart or some kind of measure of all your savings.  At just $30 a week plus the $500 you already have - and not including other money that might come in...you could have $5000 to invest in (say) a Vanguard fund when you are 18yo.  _That_ would be a cool thing for an 18yo to do.  If you're really entrepreneurial, you could have more than that (first car and an investment?).  You'll have to work for it though.
- In the mean time (and use the library here as well), keep reading.  Get recommendations from this site, and just keep learning as much as you can.
- When you're finally earning dollars in a job as an adult (yay!) or, perhaps, you might even start your own business after being so entrepreneurial...you'll already be used to being a good saver.  So then the investments can really start cranking up.  

Good luck!


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## ROE (25 June 2015)

Good stuff

Spend less than you earn is the key to wealth not how much you make

you have plenty of time and if you are interested in investing you will do well in the long run
they all will fall into places down the track.

Other books you can read is 

The Richest Man in Babylon 
http://www.amazon.com/Richest-Man-B...80&sr=8-1&keywords=the+richest+man+in+babylon

and 

The Millionaire next door
http://www.amazon.com/Millionaire-N...564&sr=8-1&keywords=the+millionaire+next+door

these show you the importance of compounding and how many people get rich by spend less than they earn
or live a modest live where as their friend drive flashy car send their kids to top private school is hell a lot poorer than the image portrait.

at your age you don't have a lot of capital to invest in the market to generate good return as fees and brokerage eat up a lot of your capital, keep learning and when you have a regular jobs, save according to the richest man in Babylon principles or double or triple that amount.

You can start with 10% then go to 15% 20% 30% and over time you don't see it makes any difference to your life style.

and the good thing is as you save and live with less you tend to be a lot happier as you never to have worry about money.

Good luck


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## tech/a (25 June 2015)

There is some good advice here.

Particularly compounding.

But Ill place a slightly different slant on it.



> Spend less than you earn is the key to wealth not how much you make




Earn more than you need---way more.
There is a subtle difference--you can have and live however you want just earn way more than you need.

So How do I do that.
Compounding
Get outside the square.

If you work for $ 35-50 an Hr you bet your company/Boss is getting around $20-50 an hr for your time.
If he's a smart boss he will have many of you. He compounds his return. I have 21 employees.

Others will invest in equipment where the cost (lease) is far exceeded by his return.
In my game I have excavators. Say a 20 tonne machine will cost me $32/hr (That's my lease costs on $250K)
I get a tax break on interest and on Depreciation. Its charged out at $140/hr and doesn't stop with 45-60 billable hrs a week.

So to compound I have a few of various sizes (6).

But you cant get a $250K lease.

I started with a lawn round.
Each new customer was worth $10 in the dollar on re sale.
I made more building up and selling lawn rounds than I did cutting lawns.

Bill Viss took it even further ( VIP) and franchised it.
Frankly he and Jims could do with a competitor!

It can be done
You CAN do it.
Think outside the box---put in the hrs and embrace compounding in everything you do.
(I always had a few girlfriends on the run----ended up with a top wife!!).

Good luck 
exciting!

*Oh your a long way from investing.
Your at the foundation stage.
Build a BIG and strong foundation then 
fill it up with investments.*


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## christianrenel (25 June 2015)

tech/a said:


> There is some good advice here.
> 
> Particularly compounding.
> 
> ...




Alot of great ideas,

The millionaire next door is great read, and changed my ideas on how to accmulate wealth through my life time. The second book in the series 'Millioniare mind' is also a good read.


Kind Regards 


Christian Renel


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## Trembling Hand (25 June 2015)

tech/a said:


> Earn more than you need---way more.
> There is a subtle difference--you can have and live however you want just earn way more than you need.




 on that one. Its a big world out there and there's lots of money to be made without having to accept the ordinary.


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## VSntchr (25 June 2015)

Trembling Hand said:


> on that one. *Its a big world out there and there's lots of money to be made without having to accept the ordinary.*




I get the feeling that becoming *and staying* a successful trader has alot to do with that exact mindset. Avoiding self-sabotage. 

My advice to the OP is to stick around ASF. Even if you don't start investing/trading/ it's a great place to grow your knowledge and learn from the experiences of others.


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## pineapple1 (25 June 2015)

Thank you all for great advice!
So it seems like a good a idea to save more money and absorb more knowledge before I turn 18 
I will definetly get around to reading all those books. 
Also I'll definetly be active and ask lots of questions, so look out


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## john5 (27 July 2019)

understand that investing (think saving) and trading (think speculation, gambling) are two different strategies, and require different mindsets, also, try to avoid borrowing to invest, any fool can look rich on a leveraged position when the market is going their way, but if/when it suddenly doesnt ...


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## willoneau (27 July 2019)

Hi john5 , isn't investing just longer time frame trading?
calling investing (think saving) implies no risk and we know that isn't true.


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## jjbinks (27 July 2019)

This thread is 4 years old and OP is not around! LOL


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## willoneau (27 July 2019)

I wonder were they are now JJbinks and how they got on?


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