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We know the reality of living on a college student’s budget. That reality consists of endless ramen noodles and domestic beer, late nights studying, and the thrill of finally dipping your toes into the real world. If you play your cards right, you don’t have to be a broke college student. With a bit of investing and budgeting, your college experience can be the start of your financial freedom journey.
Can you really invest in a college budget? We think so. Here are the need-to-know tips and tricks of the small investment game, perfect for college students.
Fitting Investing into Your Budget
Rule number one: invest responsibly. If you have to choose between investing your cash or buying something you need, always take care of yourself first. Your investing budget should always come from a surplus.
Make room for investing in your budget by limiting unnecessary small purchases. The next time you grab an extra coffee for your study session or an extra drink on a night out, ask yourself if this cash could be put to better use. After all, the price of one latte or one cocktail is all you need to start investing.
Finding the Best App for You
Investing has never been more beginner-friendly. Apps like Robinhood, Acorns, Fidelity Investments or websites like Crypto.com make it easy to invest small sums. All you have to do is find your investing app match.
Are you looking to choose your own stocks? If so, Robinhood, Fidelity Investments, and Crypto.com may be the best apps for you. Alternatively, if you’re looking to take a more hands-off approach, Acorns will be a better bet for you.
Deciding What to Invest In
If you’re looking to take a hands-on investing approach, now is the time to start paying attention to stock market news. You will be able to see what stocks increasing in value and what are decreasing in value. Staying informed and up to date will help you make the wisest investing decisions.
The bottom line is that a diverse investment portfolio is best, so diversify your investments by putting money into stocks, bonds, or forex.
When Should You Sell Your Shares?
When you make an investment, it is essential to commit to a timeline. When you leave investments untouched your investment will see compound growth. That is, the money you’ve earned on an investment will start making money as well. This is why investing in college is worth it, the longer your money sits, the larger compound growth you can experience.