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The College Investor’s Guide: How to Start Investing and Grow Your Money

Moving away from your home is quite a scary experience when you go from school to college/ university. You must learn all life’s skills including cooking, cleaning and paying bills. All of this can be daunting in the grand scheme of things however a good way to increase your income as a student is by investing.

College/University is the perfect time to start investing because you have spare time. It is a great time to start researching how to invest including the different investing strategies. Let’s take you through how you can start investing while you’re in college.

Getting Started With Investing

Investing is something that many people are scared to do because they know they can lose money. However, if you put the time and effort into investing, you can make a lot of money from it. If you have any money lying around that can be spent on investing then it is something you should certainly consider.

Something that puts many people off from investing is that they think you must have a lot of money to invest. However, that is not entirely true. There are many platforms that you can invest as little as you want that offer low-cost options.

A common misconception with many people is that only wealthy people have the money to invest. How do you think those people became wealthy in the first place? It is because they invested from a young age and learned the stock market and other investment methods to help progress their financial goals.

Start With Low-Cost Brokers

When in college you will have little money so starting with a low-cost broker is the only way you should go. We recommend you invest using Trading 212 and eToro as both these platforms are cheap and affordable.

Low-cost brokers are the only way you will build up your investment portfolio unless you get lucky and hit the jackpot. There are plenty of free stocks which you can invest in. Just do your research to find the best low-cost brokers for them.

Start With Small Investments

Once you have found your low-cost broker, you can now start investing. For your first investment, you need to start small. Donate as little as $20 per month to ensure you don’t lose too much. This little investment each month gives you enough money to practice investing.

The only way we learn is from our losses. Our losses will teach us everything we need to know for the future. If you don’t invest, you won’t lose money and if you don’t lose money, you won’t learn.

S&P 500

The S&P 500 is the top 500 stocks traded. These are the most popular companies where people invest their money so you can be certain that this is a safe investment. The S&P 500 is shares in those popular stocks which cover a variety of industries. The benefit of these different companies is that if one industry is on a down day, another industry might not be.

The positive to the S&P 500 is because of how diversified it is. The benefit is that the S&P 500 doesn’t require much knowledge to invest in. You should treat it as a learning curve as well as you can get a better understanding of the stock market. Not to mention one of the most successful investors, Warren Buffet, recommends investing in the S&P 500.

Choose A Robo-Advisory App

Picking individual stocks can be overwhelming but thanks to modern tech, you don’t need to learn about individual stocks. That is why a robo-advisory app will be the perfect method to increase your wealth during college.

Robo-advisory will create a portfolio for you by investing in stocks for you. All you need to do is commit to a period where you want to retrieve your investment. That could be at the end of your college years or in ten years. You can also choose the risk factor of your portfolio. We all know that high risks bring high rewards.

There are numerous robo-advisory apps out there so you are not stuck for choice. Additionally, these apps will only charge 0.25 per cent each year however, some apps won’t charge you this if your portfolio is small.

Use Investment Apps

Technology has made investing much easier. There are so many apps where we can invest with just a few clicks of a button. With these investment apps, you can invest in individual stocks to diversify your portfolio as much as you like.

Betterment, Invstr, Acorns, Wealthfont, and Robinhood are some of the most common apps to use in the US. These are great for investing in many different stocks and keep you safe from any trading scams.

Don’t Stop Learning

There is one tip in life and that is to always educate yourself. When you are young, you can absorb more information and this is ideal for when you are learning to invest in the stock market. There are many websites where you can learn about the latest trends in the stock market. You can also learn about the different methods of investing.

There are many websites which you can use but some of the more common sites are Investopedia and NerdWallet. Additionally, there are mobile investment apps that you can use which also provide you with multiple sources of information. Trading 212 has a new section on individual stocks which will likely affect the value of the stock so it is important to monitor these to see if the values will change.

Summary

There is no better time to invest than when you are in college. It is a period where you have plenty of time to invest and learn about the stock market. There is a lot to learn about in the stock market including blockchain technology for crypto investments. If you get your head down with it, you could learn a lot in the four years you spend at college.

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