Save money at an early age

Save money at an early age

Ahhhh when I was young I knew it all.

When I was 15, 16, 17 years old I was good looking and I was making “BIG Bucks”.

So what does a good looker do with their money?

They spend it.

I didn’t say that I was smart…


With the benefit of hindsight I don’t think this is about being “smart” or not.

I was naïve; maybe.

I believe it is just about getting the right education; like anything else. I believe.


I don’t have any harsh feelings about it but I didn’t get any financial education from my parents.

I think they didn’t want to impose anything or didn’t have the “right” answers.

It was about going to college, getting a well-paid J.O.B., a house, and paying off my debts as soon as possible.

Not a bad idea at all.


The only thing is that I never got a strong foundation about why to save and how to do it so I could become financially free at 30 years old.

You might read those lines and thinking “Mouhahahah, how could that happen? At 30, come on.”

I have couple of friends that did invest in real estates at 20 years old, invested in the stock market, saved more than half of their revenue each year, and are now all financially free.

You need to make some concessions, smart investments, or just trick your wallet.


And one of those sly tricks is to start saving at early age.

I will cover in another article how parents can help their kids with that.

But for now, let’s focus on you.


You are 13-14-15-16-17 years old and you’re working, making a pile of cash because you still live at mom’s place, and just spending on movie theaters.

How much do you make?

Are you working at the corner store, babysitting, helping the family business, working in a store, or a restaurant?


How much do you save from each payday?


“MAG, I’m saving it all and just spending what I need.”


What are your needs?


The common “mistake” is to save for something.

You are saving, saving, saving, and hope you’re going to buy yourself the car of the year.

So are you really saving at all?


I’m totally in favor of saving for LTSS, Long Term Saving and Spending, like presented in one of my previous articles, Jar system

But if I had to do it again I would have started two different accounts for saving.

The FFA, Financial Freedom Account, and the LTSS.


What about saving 50-70% of what you are making?

Could it change your future?


Let start saving 20% for your new car, your new TV, Iphone or “Toy”, and keep 50% that you will invest for life!


Let’s put it in numbers.

You go to school and you are able to work two shifts per week of 4 hours and one shift during the weekend. Let’s say another 8 hours.

It’s roughly 16 hours per week.


I’m not an accountant so let assume that you are able to get all the tax back at the end of the year so we could work with a full income.


Let’s say that you receive 11.25$ per hour (minimum wage in Quebec, Canada).

That’s 180$ a week. (16h*11.25$)

That’s 9 360$ per year. (52 weeks*180$)

You keep 50% of that, 4 680, and you spend the other half.


If you start at 14 years old and do that until you turn 17. So that’s 14-15-16-17; 4 years.

By Christmas Eve you will have a total of 18 720$

Are you kidding me?!?!?

For some people it is a down payment for a single-family property!


I am super conservative here.

I am even not assuming that you might start working 4-5 days a week during holidays and during summer time.

We are not even talking about all the money you receive from grandma at Christmas or what uncle Bob is giving you each birthday.

Add those together and put it in your FFA account.


You can buy a property that you can rent at just 18 years old and start receiving an annual income from it right on the spot.

Can you start seeing the potential of saving for investing?

And I’m not even talking about the swag that you will have when your date is going to ask you what do you do for living. “I work at Tim Hortons and I own 3 rental properties.”


If you are 25-35-40 years old do you think it’s too late?

I don’t believe so.

Saving half of the amount you would save as a teenager, 90$ (50% of the 180$) a week, is a challenge but totally doable.

I’m saying a “challenge” because as you grow you create some more expenses and you mightn’t live under mom’s roof anymore.


If you have read 7 Main Steps for Financial Freedom, there is an important topic about living under your needs. It’s hard sometimes but tightening the belt for a couple of months make you realize how easy it is to save for yourself.


Do you want to try to own couples of rental properties too? If you are patient that’s something that can take 2-3 years for the first one at that pace. What about asking one of your friends or a member of your family to go for a joint venture in this project?


Are you interested in investing in an account that will help you get a decent rate of return instead?

You are at the right place to learn how to do it.

See you in another article.



– Make It Happen –



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