5 Best Ways to Invest Money While in College
April 22, 2020 (Investorideas.com Newswire) As much as this may come as a surprise, but your college years are a good time to begin investing money. Even if as a student you only have a small amount of money, you can begin to create your portfolio. Additionally, it's also a great time to learn how to invest money and to learn how to cope with money that you lose.
As we know, when at college, it's often hard to even find money to do the things that you need to do, let alone want to do. For instance, you may be used to spending money on AdvancedWriters.com for professional help with essay writing, so you'll now need to factor in a way of raising more money for investment purposes. However, it's important to bear in mind that you don't need a lot of money in order to invest it. Even if you only have £20 or £30 pounds to spare, you can begin investing it as well as start thinking about investing money in general. The biggest aspect you have to overcome is seeing yourself as an investor. You also need to change your mind so that you look at investments in a long term sense and keep an eye on what's happening in the markets. Once you do this you'll know when to move your money around. It's important to learn these lessons when you're only investing small amounts of money.
Don't think that investing money is only for those people who have lots of money. As a student, it's worth thinking about how investing money can help to protect your financial future. Therefore, take a look at the five best ways to invest money while in college.
#1. Use a low cost or free broker
Online, there are many free or low-cost brokers. Brokers often provide you with the tools to get into investment and are usually known for their ease of user and friendliness.
#2. Use an investing app
If you find the whole investing process rather confusing, then it may be worth using an investing app. Many of these apps enable you to buy individual stocks or buy ETFs. Usually, all you need to get up and running is around £5 and a basic app usually costs around £1. These apps are a great option if you're interested in investing but not sure how to do it yourself, but keen to learn.
#3. Invest each month
If you choose a low-cost broker, you'll be able to invest a small amount of money each month without it all being taken in fees. This way you'll get to keep more of your money. Begin by investing even £20 or £30 each month and by doing this you'll be able to see what happens to your money, irrespective of what's happening in the economy. Once you invest even a small amount of money you'll start to feel more interested in what's going on in the market and you'll also begin to view things from the perspective of an investor. This means you'll be interested in analyzing and researching what you have invested and it will soon become clear that even investing a small amount of money has its benefits.
#4. Purchase small risk CDs
It's not unusual to not view a bank product such as a CD ( a certificate of deposit) as an investment. In fact, it's one of the safest options to consider. If you give a bank an amount of money for a certain amount of time, in exchange you will receive a predetermined rate of interest. A good example could be, for instance, if you have a certain amount of money saved for your following years' tuition, you will need to make sure that that is in an account that is safe and is not affected by the fluctuations in the stock market. This is where a CD would be perfect.
#5 Purchase a Standard and Poor 500 index fund
An easy way to begin investing is to buy an index fund. A popular choice would be to select an index fund based on S&P's index fund of 500 companies. The purpose of an index fund is to hold all of the stocks in an index. When it comes to Standard and Poor, there are hundreds. The advantage of this is that by having a large number of stocks, all from different industries, means that the fund is well mixed and is, therefore, less risky compared to owning individual stocks.
There is one other big advantage of having an index fund and that is that you don't need to know a great deal to start off with. When you buy an index fund, it's similar to buying a market and this means you will get the market return. This is a great way to learn how investing works and it's a method that's highly recommended by those in the know.
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