Did you know that you, as a student, can easily invest while still finishing your studies? If you are searching for fast return on investment options and want some tips on investing as a student, be sure to stay with us throughout this article.
How to Start Investing?
Many people think that to invest in something, you must be rich or that only a tiny portion of people can actually invest, but this is a misconception.
Investment is something more accessible than what people may think. There are many options, including for beginners, and much online information to help you out.
But before considering investments, you should sort out some things first like the current debt or loans you may have, for example, student loans, credit card debt, and anything else you may owe.
If you cannot fully sort them out, try to find ways to reduce or pay out a big portion of your debt. This way, you can start investing without any concerns.
Considering your current financial situation, another essential aspect to think about is how much you can invest. Then, find options that fit your goals.
What to Invest in as a Student: 4 Alternatives
Now that you know some things to consider before starting, check some investment options as a student considering a fast return on investment!
Automate Your Finances and Save a Little Every Month:
Need some discipline to help you? By adopting an automated system to deal with your finances, you can save money without worrying about checking your online banking app all the time.
When you automate your finances, things like payments and savings money directly go to where you designated. As a result, you can monitor everything related to your finances more efficiently and avoid setbacks.
Another great thing is to use cashback apps to receive part of your money back after purchases.
Investing apps open up a world of possibilities that many people didn’t have before. Why? Because anyone can start investing with low money and keep track of their operations with just few clicks.
Besides helping you automate services like transfers, payments, and savings, they also help you democratically invest in the stock market.
With no account minimum requirement, investment apps such as SoFi allow young investors to trade stocks, cryptocurrency, and ETFs at a commission-free level.
However, you must get to know at least a little about how the stock market works before going for it. For that, there is tons of free content available online.
Another great option is Acorns. Simply put, the app takes all the spare change of your linked credit and debit cards and turns them into investments and savings.
This way, you will save money and automatically invest tiny portions of it without worrying about keeping track all the time and investing in a lot of money.
Acorns provides other features like cashback in selected retailers, which gives back some of the money you pay in your routine purchases.
If you want lower risk and short-term investments options, here are some alternatives for you: CDs and Short-term Corporate Bond Funds.
Certificates of Deposit (CDs)
You can find CDs at your bank. They offer a higher return compared to other bank products like savings accounts. The CDs (Certificates of Deposit) are time deposits.
They basically work like this: you let the bank hold your money for a specific period. Then, they give back the money with a higher interest rate at the end. A simple way to invest your money, and you can even set up the time!
Short-term Corporate Bond Funds
These are bonds issued to fund the investments of major corporations. They make regular payments, like twice a year or quarterly.
This kind of investment is safe and diverse, coming from many different companies across several industries, which is excellent for your portfolio and low risk.
If you are looking for an investment, how about investing in your own future by starting a small business?
You can start by offering services in your spare time or learn a new ability that you can use to sell your time.
Eventually, this can become an actual income source for you and a great way to save money to put in your other investments later on.
Some options you can explore are:
You are already a student, so it is just a matter of focusing on your marketable qualities.
You can offer your services to people you already know, look for platforms that provide independent classes that you can teach, or use your social media platforms to advertise your services and to boost your small business and spread the word.
Freelance Your Abilities:
Another way to source some money in your spare time is freelance work. In addition, nowadays, the internet provides many opportunities for self-development and self-investment.
So, if you have an ability such as writing, design, video editing, programming, etc., use it to source some money and start creating a portfolio in the area you choose to work in.
There are several freelance platforms online to bid on projects or receive proposals from potential clients. Some examples are Upwork, Fiverr, Freelancer.com, etc.
If you want to start investing as a student, the possibilities are many. You just need to understand your current financial situation, set your goals, and choose the options that best fit your plans.
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