Beginner’s Guide to Investing For College Students in 2022

Beginner’s Guide to Investing For College Students in 2022

In college, students might find it hard to focus on anything other than their academics. However, this is a good time to make plans for the future. A little investment today might provide you with the financial stability you’ll need in your later days. If you have been wondering where to start, we’ll be sharing 4 of the best step you can take today to start investing as a college student.

4-Step Beginner’s Guide to Investing For College Students in 2022

Often students don’t bother with investing. This can be considered a bad idea, as you would be missing out on some life lessons that could prove beneficial, not to mention the money you would be saving. The best students start investing early, and even if you’re late, by following these 4 steps, you should be able to start investing this 2022:

  1. Choose where to open an account

This is an important step as you might find that certain platforms offer more benefits that suit you when compared to other investment platforms. For instance, while some online platforms would require investors to pay a sum, others are free to use. If you’re feeling overwhelmed with the abundance of options available, you might want to choose any one of the following:

M1 Finance

An online investment platform that you can use to buy stocks as well as other investment items for free. You can also automate the investment of your portfolio based on certain parameters you set.

Robinhood

This investment platform isn’t that student or beginner-friendly as there are no fractional trading allowed. This means you might have to spend a lot more than you planned in order to invest. If you have the money, it’s still a great choice for trading and investing in stocks.

  1. Decide on the type of account to create

If you haven’t invested ever before, you would need a brokerage account as investing can’t be done at a bank. When you first decide to signup, you have the option to pick between several accounts. The best ones would be:

  • Cash accounts
  • Margin Accounts
  • Traditional IRA
  • Roth IRA

The one you pick would be related to how you intend to access your cash in the future. For instance, if you’re just starting out, and would prefer to withdraw your investments when you retire, then a Cash account might be better suited for you. However, a more short-termed planned might be better suited for a Margin account.

  1. Educate yourself on the market

It’s important to note that in the short term, you might lose money. To avoid panicking and withdrawing all your funds, you might need to develop discipline. While the market is prone to swings, it has been shown to return profits to those that stay for the long run. When starting out, you might want to focus on Index Funds as they come as either mutual funds or ETFs.

  1. Invest and wait it out

After taking the time out to understand the market, you can then invest. A $1,000 could be considered a good amount to start investing in. One way you can earn money is to write essays for money online at TopEssayWriting. You could also decide to add more capital to your investments by setting up automated deposits. The next months and years that follow might not always be the best, but a little discipline might be just what you need during those times.

Conclusion

Investment shouldn’t be looked at as a get-rich-quick scheme. It often requires a lot of discipline, time and effort. But the rewards are often worth it. The little steps you take might not seem much, but with time they usually show. Hopefully, this article has provided you with the tips needed to start your investment journey.

Author’s Bio

Joanne Elliot is a financial analyst and freelance writer. She uses her experience in the financial market to share tips and information that might be useful to students especially. When she isn’t working, Joanne enjoys going for long walks in the park.