Many students may feel they do not have enough knowledge or funds to start investing. If you are among these students, you will be glad to know that this is as far from the truth as it can be. Investing takes very little money and can offer unmatched returns if you are smart about how you invest. Starting early in the investment niche can secure you for life and offer many benefits, such as early retirement and a great lifestyle.
Ways Students Can Invest
As this is the dream of many students, many actually start investing their money. Far from modest returns on your savings accounts, it can be possible to make significant returns – 4-8% of annual returns is considered a moderate growth rate for most investments. Without investing, it can be hard to afford the lifestyle that many people dream of. For this reason, let’s consider some ways to invest your cash while you are still young:
Apps, such as RobinHood, offer you a great way to invest your money. The benefit of using an app like this is that you can avoid dealing with brokers and overt technical terms. It is also a great way to start your investing journey and learn more about capital growth, dividends, and (yikes!) taxes.
If you’ve used apps like this before and would like to improve your game, hiring a low-cost broker is all you need to do. However, as most brokers take a certain percentage, they may also have percentage-based fees that mean that you can enter their client list only with a higher sum – there is usually a prescribed minimum.
However, to invest, you need some money, to begin with. If your parents still support you and you would like to save, head over to your bank and see what kinds of services they can offer to you. Banks will usually offer a “round-up” type of service, where the change you would be getting if paying in cash goes to your savings account. A $7.83 bill becomes a $10 bill and the remaining $2.17 are transferred to your savings account.
If you want to have even more money to invest, you should start looking for a side job. If you are too busy, you can hire copywriting power to do a part of your work, such as writing a term paper or making study notes for you. Then, use the extra time to browse for job opportunities on campus.
Once you finally have some investment money available, you should head over to the learning part of the investment game. Start investing in moderate-yield funds, as they are more reliable than individual stocks. Funds invest in multiple stocks at the same time and ensure that you get your risk reduced as much as possible.
Anyone can start investing, and they can start doing so as early as they want. With some limits to the legal age at which you can join the investment market, it is still possible to do so with your parent’s consent. You should follow our guide on investing for students and ensure an early start and great revenue in years to come.
Eric Wyatt is passionate about being financially independent and being able to secure a good income for himself. For this reason, he constantly works on perfecting his skill set and would love to retire early. When he has free time, Eric loves to hang out with his friends or travel.