You can put up to $5,500 a year in. (Or an amount equal to your total earnings for the year, whichever is smaller, but if you've earned less than $5,500, then you're completely lying to yourself about being successful.)
You won't get a tax break now, but your taxes are probably pretty low now. The money will grow tax-free. (In a normal investment account, profits are taxed.) When you take the money out at retirement, you won't pay tax on it.
Don't start picking stocks. You can't do that any better than you can predict the spin of the roulette wheel. Don't get distracted by someone who wins by betting straight on 19 or makes big money on one stock. That's luck, and you're investing, not gambling. Put your money into stock indexes that cover broad market indexes. This will make you money as the market grows overall instead of trying to gamble on which companies will do better than people expect. Stocks are like odds on horse races. If people think the stock will do well, the price goes up, which drives down the payout (profit), so just finding companies that everyone knows will do well will not give you an advantage because everyone knows about them. And you don't have an inside knowledge on the stock market that all the stock market professionals don't have. The difference with the stock market is that the vigorish goes to you (in finance, we call this the risk premium).
If you don't have $5,500 to put in to a Roth IRA, you're kidding yourself about being successful. You're just living rent-free and having your parents provide your food and electricity.
Vulcan is right on the money.
It doesn't matter HOW MUCH MONEY YOU MAKE if you only worry about the front end (money coming in).
A financially successful and financially secure person lives below their means and invests the difference wisely.
With every single paycheckt you have the choice of making someone else rich (spending) or making yourself rich (investing). Those are the two options.
If you define "success" as living your life your own way, fear not, you're already there.
Otherwise, Learn something before you make baseless decisions. Skipping college is a big decision, don't you think? Do you already have specialized skills and knowledge? Do you have a reason to skip college? One is not given. If you don't have a better alternative, skipping college is a big, dumb mistake.
At least find out which aptitudes you prefer, and thus, where your interests lie, where your strong points will stand out, and weak points be identified.
Take a free aptitude test at any college. This will show you the areas of interest. Check out two books from the library on each top subject. These are the areas where you may become prolific. When you find your niche, nobody can stop you from learning more about it.
Making "great" money (whatever that might be) is only a portion of the issue. Saving and investing is the more important part to being financially successful. In addition there is more to life than money and stuff, so think about what is important and fulfilling to you.
Hi Nick, the best advice I would give you is to start building good savings and spending habits. If you can budget well and live within your means while saving money, it becomes a habit that's much easier to maintain later in life, regardless of how much money you make.
As far as investments, that's a complicated matter, especially if you're investing on your own. Just remember to do your research and that risk is an inherent part of investing! Good luck to you.
Hi everyone, my name is Nick and I'm 19. I graduated high school in 2012 and I'm just looking for advice on how to make great money. I live in Las Vegas and I have come to the conclusion that I don't want to go to college. My dad works in the casino and makes great money and didn't go. I currently work for a rental car company part time and make decent money for myself but I'm ready to start my life and make great money. I'm curious about investments and just want to do anything that will help me start off. I have a great work ethic, I love working, it's a great feeling. You don't find too many people who enjoy working anymore, just a bunch of lazy people who complain about there jobs. Any advice for me? I would really appreciate it!
Thanks,
-Nick
