College life can be intimidating. You have to attend all your classes, work on your assignments and submit them on time, revise for your exams, and find time to relax and make new friends. With all these activities, it can be difficult to find time for anything else, let alone investing.
Surprisingly, the college offers one of the best investment opportunities. You don’t have to have the fortune to start investing. All you need to do is learn how to invest and start with what you have. Investing is a skill. And like any other skill, it can be developed with consistency and practice.
Why is college the best time to start investing?
It’s difficult to start developing an important skill such as investing when you have to study and get good grades in college. However, it doesn’t take a lot of time or money to become an investor. Thanks to rapid technological advancement, there are lots of low-cost and free options available today.
The hardest part of an investment journey is to think of oneself as an investor—whether you hold different types of cryptocurrencies or public trading companies. You need to develop an investor’s mentality and analyze what is happening in the modern market. Learning this early will pay off in spades in the long run. Here is a guide for students to get started with investing in college.
1. Start a high-yield savings account
One of the best ways to boost your savings is by opening a high-yield savings account. Such accounts pay higher interest on your deposits compared to traditional savings accounts. Apart from that, you can withdraw our funds whenever you want. Most savers never consider bank products as investments. However, they are among the safest ways for college students to invest their hard-earned cash. These investments are the best places to put money that you don’t need to use at the moment. For instance, if you have your tuition fees for next year, you can consider saving them in a high-yield account.
2. Find a low-cost or free broker
If you want to find time to start investing, you need to find an expert to write your college paper and a good broker. Fortunately, there are lots of college student investments and low-cost and free brokers who offer ETF trades and free stocks and also provide amazing research and educational tools to help you get started. You need to find a reputable broker who offers an amazing college student investing service. If you are focused on cutting costs, you should consider using Robinhood brokerage services. They have a sleek mobile app that will help you access their services quickly and easily. Investing for college students is easy with a good broker. Learning how to invest as a college student is the best decision you can ever make.
3. Invest a small amount of money every month
If you decide to use a free broker, you’ll get to invest small amounts of money every month without incurring additional fees. Therefore, more money will go into your funds or stocks. You can start by putting away $20 to $30 each month. Today, most brokers offer investors the ability to buy shares in fractions. Regardless of the performance of the economy, you need to get started. Even with a small amount, you’ll start thinking like an investor and make the right decisions. Investing your money will encourage you to do your research and analyze your portfolio. Starting with a little will pay off in spades in the long run.
4. Download an investing app
One of the best ways to simplify your investment journey is by finding a good investing app. Thanks to rapid technological advancement, you can find lots of amazing investment apps for your mobile phone. These apps will help you learn how to invest at a low price. You don’t have to have thousands of dollars to start investing. With an investment app, everything will be easy on your side.
5. Open an IRA
Most college students don’t think about retirement while studying. However, opening an IRA can be an amazing opportunity to build your savings in the future. An IRA enables you to avoid taxes on any dividends or profits.
The sooner you start learning about the economy, the better your financial future will be. Students can start working with small amounts of money and eventually grow their portfolios and knowledge. Investing is not about taking blind risks, but calculated ones. Don’t be afraid to seek help when you need it. There are a lot of people who are ready and willing to help you make the right investment decisions. What are you going to do today to start building your portfolio?
Sven Eggers is a talented and award-winning academic writer. He loves helping students achieve their career goals and financial freedom. He enjoys socializing with people and reading books during his free time.