5 Things teenagers need to know to become rich

4. Buy assets, not liabilities

Buy things that will increase your wealth, not things that make you owe money! For example, if you invest in a stock that pays a dividend of a portion of the profits that a company shares with you, you will receive cash every three months for doing absolutely nothing. Buying assets can be a smart investment choice as their value grows over time. Rich people buy assets, middle-class people buy liabilities that they think are assets, and poor people only have expenses. An asset puts money in your pocket, while a liability takes money out of your pocket.