You might be someone who is curious about the “markets” or someone who tried to delete the Stocks app off your phone. Either way, investing early is a really great way to guarantee some financial security later in life. The best part is, you really don’t need to work on Wall Street to do it! There are some basic principles to learn to make sure you’re investing wisely. Get started with:Who
You, a savvy college student in, all your money making glory.
Investing your money is basically the idea that you should set aside some money into different types of accounts and try your best not to take it out. It is based on the compound interest principle which basically means that if you invest $10 and make $1 on it, $11 becomes your new investment amount eventually giving you $12. This is how your money grows. The longer you invest without removing any money, the more you will make!
Investing early allows you to take more risks. We're not talking about gambling and moving your money in and out of your accounts every day. Since you’re young, you can put money into the stock market and ride out any lows and highs in the long run. This means that you can set aside a little more money to put into your investment account, because you will eventually make money on it. Take some money from your job or summer internship and keep adding it in gradually. Also, by managing your money actively, your spending habits and budgeting will improve.
Now. If you haven’t started already, no worries, the best time to start is always now.
There are some user-friendly companies to try like the ones below. If you don’t feel comfortable starting on your own or have any questions, don’t be afraid to talk to a financial advisor!
The biggest thing about investing is time. Investing as a college student gives you plenty of it. Start by setting up your account with one of the places above and then start putting in money gradually. If you’re buying stocks, think of buying broad based indexes like the S&P 500 Index, which basically means you’re buying a bit of a basket, full of little slices of the world’s 500 best companies. If you’re thinking about buying stocks of individual companies, make sure to do a lot of research to see their performance over time.
Smart investing early in life only means you’ll make money on top of the money you have! It will help you prioritize and better understand your own finances. The Boro app can help you get started!