Student Investments – 4 Practical Pieces of Advice


January 13, 2020, | AtoZ Markets – The majority of students think about the investment into the future as a distant perspective and consider dedication to studies as the best solution. While it is absolutely true since knowledge and skills are the primary means to earn money, there are other smart investments that even freshmen can consider.

The main requirement for student investments is the possibility to invest small amounts of money so that it will not affect young people’s limited financial possibilities as all other obligations, like the college tuition fees and rental fees, remain active. However, if a student makes a wise decision, the possible benefits will be worth those small sums deducted from one’s income.

Why Should You Care?

The main precaution that young investors should make is to refrain from being involved in schemes that offer fast and easy income. While some of them may be a real opportunity, many people lost what they invested and you should not be one of them.

While earning money working after studies and looking for the best way to invest part of your income don’t forget to take care of upcoming tasks in college taking into consideration assignment service available online. Only balance and careful planning will be beneficial for the future.

Investing as a Student: 4 Ways to Get Started

If you are wondering how can a college student invest, below are 4 easy ways you can start investing with little money today.

1st Option: Stocks

While it may appear that buying stocks, or shares in a certain company’s ownership, is not the option that young people in a college invest in readily, it is in fact very good opportunity to obtain assets that will increase in value over time, contributing to the growth of the sum you invested. It will be a good idea to learn more and understand the stock market better prior to investing. Do not worry if you don’t have enough money to buy shares you would love to invest in – there is the opportunity to join the investment trust along with other people while the manager of this unit works with the investments on your behalf.

2nd Option: Property Investment

This is the opportunity that is more interesting for students who are currently finishing their studies or obtaining graduate degrees. The reason is that this way of investment requires more money to be invested and considerable attention from the student’s side during a long period of time.

However, it is also one of the most sensible ways to invest your money and obtain the asset that will only add in price with the pace of time. If you think where to invest now and have the minimally sufficient funds at your disposal, think about the possibility to have your own home and do not pay rental fees, which grow each year, by the way. You may even consider offering apartments in your new house for rent to other students and cover the part of the mortgage in this way.

3rd Option: Invest in Collectibles

Those who are looking for some kind of time investment which will not take many efforts, sit and think about the things that might be interesting for collectors in the future and could be bought at a cheap price nowadays. While it is not as a definite way to invest the money as the other sensible opportunities to invest while being a college student, it is relatively effortless, does not require much money, and available for any student, even for freshmen. At the same time, if one can afford to forget about a certain sum invested in potentially collectibles and just wait – even if it will take a few decades – the results might be really encouraging!

4th Option: Traditional or Roth IRA

Individual Retirement Accounts (IRA) can be divided into two types: those where taxes are deducted upon depositing savings while withdrawing funds is tax-free and vice versa. The former is commonly known as Roth IRAs while the latter are traditional IRAs. Why should a college student think about retirement? Because people who took care of their future as early as possible might actually become millionaires even before the retirement age. Just imagine how much can you collect during many years of saving – and all those years begin when you were still a college student!

Conclusion

There are multiple other opportunities for those who have some available funds and want to use all possible options instead of being limited to savings only. For example, crowdfunding could be just another opportunity that deserves attention. Anyway, there are a few rules that a young investor should follow to become a successful and rich personality in the future: combine as many good and legal ways of potential income as possible and avoid debts. Credit cards are the worst enemies of young students who want to live on their own as the possession of the credit card does not reflect the real financial status and possibilities of a person, unlike the investment portfolio.

Author

Joshua Robinson became the columnist writing financial pieces of advice for the readers of the online newspaper a few years ago. His articles are of particular relevance because of Joshua’s economic background and education. He is also keen on Math games, quests, and anything that challenges his brain.

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