Not that many students consider investing their money this early on and wrongly believe that investment is something only older people are supposed to do. But, financial advisors and experts beg the differ. Investment is something we should all start doing as early as possible, to make sure our money has enough time and space to grow.
Still, students fear starting such a journey, mostly because they need more information on how to do it right. Luckily, we’ve got you covered. We’ve created a guide to help you study and invest simultaneously, doing both those things successfully. Let’s dig in.
As a student, you probably don’t have a ton of money lying around. If you’re working, a large portion of your money probably goes to paying rent, transportation, food, your social life, college supplies, and so much more.
Therefore, you first need to decide how much money you can set aside for investment.
To define your budget, you need to:
This will help you shape a more specific idea of how much money you can think about investing.
Working, studying, and planning your investments will take up a significant amount of your time. Your academic performance needs to remain solid, as well as your efforts at work.
This is why you need to plan and organize your time. Here’s what we suggest:
If you need help studying, there are many online tools. TopEssayWriting can help you with writing assignments. You can also find tools for math problems, chemistry, physics, or any other subject. You must maintain your academic success while finding the time to invest properly.
Now that you know your budget and when you’ll deal with your investments, it’s time to consider your investment options. Let’s break it down:
Consider even the possibility to invest in foreign markets, to expand your options. Plus, you could also decide to invest in different types of assets or financial plans to diversify and increase your chances of earning fair money.
If you invest all your money into only one strategy, you risk losing it all. But, if you mix things up and smartly arrange your money, your chances of succeeding are bigger.
Investing blindly is never a smart idea. You must be aware of the risks before deciding to put your money at stake.
Risks are an essential part of the investment game; no matter how great your strategy is, you risk losing. The key is finding a strategy that brings minimal risk to the picture and going with that option.
So, how can you consider the risks?
There are different ways:
You should also find credible statistics and learn facts such as that 35% of US citizens believe real estate is the best investment, while 75% of financial advisors think it’s liquid cash and equivalents.
Finally, remember that investment is a long-term journey, and nobody earned tons of money in a month or two.
Your biggest enemy in this game is panic, so make sure you control your fears and always stay sharp.
Experts claim that the only way you could possibly lose money is if you panic and cash out. Most people do this when their bonds start losing value or they see their cryptocurrency prices going down even a bit.
Instead of panicking, keep your eyes wide open and keep track of the situation. You never know when things could turn around when you could trade, invest some more, or simply overcome the crisis with patience.
Studying and investing simultaneously is far from simple. But, if you arm yourself with information, patience, and great time management, you’ll easily be successful in both those endeavours.
We hope that our guide on student investment helped you get started with this journey and earn confidence that you can grow your money slowly and steadily. Start investing your money today!
Ewan Jennings is a financial advisor and a blogger. He writes for a noble cause- to help people overcome financial difficulties or simply improve how they manage their money.
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