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Investing money while attending college proves smart for any college student. You might be thinking, “How can I invest when I’m barely making enough to feed myself?” Breaking loose from your parents grip can be a stressful time in your life while becoming an adult and making it on your own. How does one invest money while going to college? It takes some planning but you will find, it is not impossible and in the future, you will be glad you invested.
Write down your expenses
Take some time and write down all the basic expenses you face while attending college. Some hints are textbooks, food, rent, and the ever-increasing price of tuition. If you have a car, you want to consider gas, maintenance fees, and insurance and car payments if you are paying on the car. Estimate what you pay to eat out daily as well as snacks and drinks.
Eliminate some of your expenses (if possible)
Your goal should be to eliminate some of these expenses with common sense factoring. Eliminating some of these expenses is something you must do to prepare for investing your money. If you are paying rent, move back home with your parents. Search for a smaller place to live with smaller rent payments. If you live close to your college, get rid of the car. Getting rid of your car will eliminate car and insurance payments along with maintenance and gas fees. Are you eating out a lot? Start packing your own lunch or eat in the school cafeteria, which proves cost efficient. Performing these tasks will help you in your process of investing money.
Why would I want to invest money while attending college?
There is not a doubt that kids do not think about investing money, especially while attending college. Attending college is supposed to be a fun time in your life. Where this is true, investing as much money as you can (even if only a little bit) during this time in your life, you will be one-step ahead of other college graduates.
Why can’t I wait to invest after graduation?
Most people do wait until they graduate from college before investing. Most people want to invest after graduation but the truth is, most people do not. People tend to wait until they are in their thirties or forties to invest. In other words, people prolong investing into their future, which ultimately means, when they retire, they will not have a lot of money invested. If you begin while attending college, you are ensuring that you will have a nice nest egg for you and your family someday.
Where do I start?
1. Bonds or stocks
Bonds and Stocks are great ways to begin investing. These two things prove to be great investments over a period.
2. Interest bearing savings account
Designate some money out of your financial aid and other means to be placed in the savings account. Set the account up as an account that cannot be withdrawn from. If you are insistent on adding money to this account over a period of four years, you will be pleased with the amount saved upon graduating from college.
There are numerous ways in investing money while attending college. It might appear as a royal pain in the butt at first but trust me, you will be grateful you invested when you graduate. Investing your money while attending college is a first step in securing your future. It is always a smart idea to get into the habit of investing and saving money. Keep in mind, the earlier you start investing, the more you will have when you retire.
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Source by Ben D Anderson