How to invest money as a student?
Contrary to the popular opinion of many in and outside of the university community, college is a great time to start investing. Many of the most successful entrepreneurs and investors of our time developed the right investment habits when they were in college, and you can do the same. You don’t need a fat bank account before you begin your investment journey. You can make the most of what you have by practicing healthy saving and investment habits, even while you are in college.
The good thing about starting early is that by the time you are out of college with a steady job, the standard you have set for yourself will aid your financial growth. Here are a few ways to invest money as a student.
Open a high-interest savings account
It is wise to open a high-interest savings account with a bank near the school. High-interest savings accounts pay depositors higher interest than traditional savings accounts. If you have a fixed deposit account, this is even better because your money will keep accumulating. For example, if you already have money for next year’s tuition fees, you can deposit it into your account until you need it to pay your fees. During this time, you can earn a few percent of its value, depending on when you deposited funds.
Invest a little amount every month
You can invest in stocks already in college. One way to do this is to use the services of a commission-free broker. Investing 20 dollars or more every month may look like a ridiculous amount today, but when you do this over time, you will be surprised how much your investment would appreciate by the time you graduate. In addition to the profits you can make, starting your financial activity early will help you to build an investor mindset that will serve you well throughout your life, long after graduation.
Invest in antiques and valuables
Do you think about items you can invest in today that will pay you a lot tomorrow? Try to invest in artworks, collectibles and wines. Such items are not very expensive in the early stages, but will increase in value over time. Wine connoisseurs will only pay a modest price for a new bottle of wine, but a few years later, they won’t mind paying hundreds, if not thousands of dollars for the same bottle. The same applies to artworks and valuable collectibles such as bracelets, watches and the like. The older they are, the more valuable they become.
Buy an index fund
Another asset you can invest in is an index fund. Some very good mutual funds that are highly rated by the Standard and Poor’s 500 index will help you to build a strong portfolio. An index fund contains shares of several hundreds of blue-chip companies. If you hold so many stocks in multiple industries, your portfolio will be protected against risks from one industry. Index funds are safer for you as a student compared to holding volatile stocks issued by one company.
Use an investment app
Another easy way to invest the money as a student is to use an investment app. You may not have much knowledge about investing, but apps can simplify the process for you. Popular apps like Stash, Bankrate and Acorns are just examples of applications used by many to keep track of the current stock prices. Some of these applications charge users as little as 1 dollar a month, and you can start investing as low as 10 dollars. Investment applications also help you to learn the rules of investing while still in college, so by the time you graduate, you will have above-average knowledge of how the market works.