Learn to Save Money While in College
A part-time job or a summer job can help pay the bills in college. The experience will also help when you are out in the real world looking for a job. Instead of spending all the money, cut some of the expenses which are not really needed and keep aside some funds every month. You need to save money until you have enough to invest in stocks, mutual funds or other investment opportunities that require a somewhat big initial amount. In the mean time, open a savings account in a local bank to let the money grow with interest.
Some Tips On Investing Your Hard-earned Money
Once you have enough funds at your disposal, start looking at other investment options. Research is an integral part of investing since it is easy to fritter away your hard-earned money chasing the latest hot stock. For the beginning investor mutual funds may be a better option than individual stocks because they are more diversified and and have low minimum requirements. Exchange Traded Funds and no-load funds are excellent options for aspiring investors.
Once you are confident enough to trade in shares, enter the stock market but with caution. There are many advantages of investing in shares. Historically, shares have had the highest rate of return than any other type of investment, but they are also inherently risky. Open an online brokerage account and carefully research stocks before investing in them. Online brokerage accounts allow you to open and trade with an initial investment as little as $500.
- U.S Securities and Exchange Commission website, https://www.sec.gov/investor/pubs/assetallocation.htm
- FINRA website, https://apps.finra.org/Investor_Information/Smart/401k/401101.asp
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