How to Turn Your Dumb Summer Job Into $162,000

In which John celebrates financial independence by explaining how minimum-wage summer jobs can become incredibly lucrative if only you save some of your money in a retirement account. In the US, the most common retirement accounts are called IRAs (IRAs have tax advantages), but any investment account will do. Just sock the money away in a low-fee diverse mutual fund, wait 50 years, and enjoy the magic of compound interest. Caveat: Obviously, I am not a financial advisor or investment professional. I am a novelist. Also, while it's a good idea to start an IRA in high school for most people, it may be a BAD idea if you're planning to seek financial aid from a private college in the US, because they might count your retirement savings against your financial aid application. (If you attend or will attend a public university, this is unlikely to happen according to my research, although again, I am a novelist, not a banker.) There are a LOT of nerdfighters in the voting round for YouTube NextUp Europe. You can vote here: http://www.youtube.com/nextup Nerdfighters to vote for include: missxrojas (who gave The Fault in Our Stars its title) DeEelcoShow BarryAldridge dutchforn00bs Beckie0 booksandquills OMFGItsJackAndDean tristopiatv willsodyssey thegearskeepturning musicfromblueskies tyrannosauruslexxx EDIT: Islamic banking does not use interest, so this particular piece of financial planning advice does not hold water in the Islamic world. (But I still advocate for beginning to save early!) HERE ARE A LOT OF LINKS TO NERDFIGHTASTIC THINGS: Shirts and Stuff: http://dftba.com/artist/30/Vlogbrothers Hank's Music: http://dftba.com/artist/15/Hank-Green John's Books: http://amzn.to/j3LYqo ====================== Hank's Twitter: http://www.twitter.com/hankgreen Hank's Facebook: http://www.facebook.com/hankimon Hank's tumblr: http://edwardspoonhands.tumblr.com John's Twitter: http://www.twitter.com/realjohngreen John's Facebook: http://www.facebook.com/johngreenfans John's tumblr: http://fishingboatproceeds.tumblr.com ====================== Other Channels Crash Course: http://www.youtube.com/crashcourse SciShow: http://www.youtube.com/scishow Gaming: http://www.youtube.com/hankgames VidCon: http://www.youtube.com/vidcon Hank's Channel: http://www.youtube.com/hankschannel Truth or Fail: http://www.youtube.com/truthorfail ====================== Nerdfighteria http://effyeahnerdfighters.com/ http://effyeahnerdfighters.com/nftumblrs http://reddit.com/r/nerdfighters http://nerdfighteria.info/ A Bunny (\(\ ( - -) ((') (')

Comments

1. Interest 🤦‍♂️ proper haram
2. Most people are going to buy a house when they get older. Instead of putting in the IRA its better to put it towards your mortgage first..a $300,000 house over 30yrs if you add an extra $300 to your monthly payment you can save $50,000 in interest and have your house paid off 7 years early
3. I flip and rent real estate for a living and I average a rate of return of about 28%; but that's because I mostly don't finance (no financing costs) and am hyper efficient at this point. So that money is actually better invested in my real estate enterprises.
4. But most people that age NEED that money immediately for college and/or living expenses. That's the problem! Also, you'll take a huge 10% hit (plus all applicable fees) if you pull it out early.
5. Thanks for the idea. I'm 23 and I have about $2000 laying around that I actually wouldn't have any problem investing. I'll definitely look into this.
6. My parents are divorced so I don't have to go to family vacation cause they both have no money
7. You live in a country where you can safely assume it isn't going to hit the bottom anytime soon, this is a privilege, if you live somewhere like Greece, Venezuela or Egypt, it would be unwise to invest in anything. government can just tell you that 20% of your money will be confiscated for the sake of the national economy, not mentioning corruption, hyperinflation and cash control.
8. Great- I live in Germany and we don't have an equivalent to IRA b/c of our crappy bank lobby. Arghh!
9. See I could put away money now, but that $400 would be a lot more useful to me now than 52000 later since I really need that money now
10. These two books serve for a high school and college level money management course:
    
    Think and Grow Rich by Napoleon Hill
    Money: Master The Game by Tony Robbins
11. Yes join the IRA 🇮🇪 nothing subliminal in this , at all
12. i'm amazed at how many things you just said are relatable to me
13. can a person open up more then 1 IRA account? or is it just limited to one per person?
14. Or you could invest in bitcoin or Ethereum and be a millionaire!
15. 3G internet haha
16. what about an ESA?
17. You'd probably get a bigger return of you invest in college (depending on what you study, of course)
18. I so wish I'd discovered all of this when I was younger. I'm not that old at 27, but mainly, I wish I'd done more for my independence when I was younger. Being terrified of driving though hindered that incredibly as I didn't get my license until I was nearly 24 so not that long ago. Only now am I taking baby steps of independence, which I've always wanted, but I hate working...rather, I hate the jobs I keep getting but I feel I'm stuck in a bit of a loop. I'm never hired for jobs outside of customer service because my resume screams customer service (a job market that usually doesn't require a degree).
    
    But I'm tired of customers...and while call centers used to be good for those that wanted to also go to school, nowadays you have to fight, kick and scream to get a schedule that works with school.. Anywho. my younger sibling and I will be sharing a place for a year coming up and then after that,we'll move out on our own. With he and I sharing rent and stuff, if I can keep a full time job, I'd like to take that chance to try school again. I NEED a degree; I'm not naturally gifted with things. I have to be taught how to do something new, I rarely just pick up on it on my own. And I need a degree that minimizes my contact with customers since at heart, I'm not very talkative. Though online customer support (one of my first jobs) is alright.
19. If you think the economic growth of the future is going to resemble the economic growth of the past you haven't been paying attention.
20. Noice!