I wish someone had told me about investing when I was 16. But more than that, I wish someone had shown me how to create my own money to invest. Back then, I thought you needed a “real job” to start investing, and that investing was something adults did with their leftover money after paying for boring stuff like mortgages.
It turns out that teenagers have two incredible advantages: time and hustle. If you can combine a side hustle that generates cash with smart investing habits, you’re setting yourself up for something pretty amazing. Let me show you how this works.
Why Starting as a Teen Is Your Secret Weapon
Here’s something that blew my mind when I first learned about it: time beats money every time when it comes to investing. A teenager who invests $1,000 once and never adds another penny could end up with more money at retirement than someone who starts investing $5,000 annually at age 35.The Magic of Starting Early
Let’s say you make $2,000 from reselling sneakers at age 16 and invest it all in a stock market index fund that averages 10 percent annual returns:- By age 65: That $2,000 becomes about $256,000
- If you wait until age 25 to invest that same $2,000, it becomes about $108,000
- Wait until 35: Only about $42,000
Starting Your Investment Fund by Reselling
Here’s where it gets exciting. You don’t need to wait for a traditional job to start building wealth. Reselling can generate significant investment income, and it teaches you valuable business skills along the way.Why Reselling Is Perfect for Teen Investors
- Start with whatever money you have (even $50–100)
- Learn about supply, demand, and markets
- Generate cash specifically for investing
- Develop entrepreneurial skills
- Work on your own schedule around school
What Actually Makes Money
- Sneakers: Limited releases, retro drops, rare colorways. Buy retail, sell for 2–3x when they sell out
- Electronics: Phones, gaming consoles, AirPods. Buy broken/used, fix, resell for profit
- Thrift store gold: Designer clothes, vintage band tees, unique pieces marked way under value
- Trading cards: Pokémon, sports cards, Magic cards. Buy packs or collections, sell singles
- Seasonal items: Halloween costumes in October, Christmas decorations in November
- Textbooks: Buy at semester end when students want them gone, sell at semester start
Reselling Strategies That Actually Work
- The thrift store method: Visit thrift stores to find name brands priced incorrectly. A $5 vintage Nike sweatshirt might sell for $40 online.
- The retail arbitrage play: Buy clearance items from stores and resell them online where they’re not on sale.
- The fix-and-flip approach: Buy broken electronics, learn to repair them, sell for 3–4x what you paid.
- The seasonal strategy: Buy Halloween costumes in November when they’re 75 percent off, sell them next October.
- The local market gap: Find items that are popular online but hard to find locally, then source and sell them.
The Investment Strategy: 50/30/20 Rule
Here’s a system that turns your reselling hustle into long-term wealth:- 50 percent goes to investing: This builds your future
- 30 percent goes back into inventory: This grows your business
- 20 percent is yours to spend: This keeps you motivated
Where to Actually Invest Your Profits
Start with a Roth IRA: This is the holy grail for teen investors. If you’re reporting your reselling income (which you should), you can contribute to a Roth IRA. Here’s why this is incredible:- You pay taxes now (when your rate is probably low or zero)
- Everything grows tax-free forever
- You can withdraw contributions anytime without penalty
- No taxes ever in retirement
