Smart Investments

Early investing is an opportunity to set yourself up for greater wealth over the long-term. And you don’t need to wait until you get a career to do it. There are ways that college students can invest now, and some of them require very little input. People think of investing for things like retirement, but investments can fund other things as well. You could leverage investment income to travel, pay off debts, send your kids to college, and so much more. While some investments should be set aside for retirement, others can be used to enjoy life with.

 

Real Estate

Imagine living rent-free in college. If you can purchase a home, this is possible. You get roommates, and they foot the bill for the mortgage. After college, you can expand your real estate portfolio, sell it, or even continue living in it rent-free. Real estate is always considered a good investment because it’s an asset that appreciates in value if it is well-taken care of. If you purchase a multi-family home, there is even greater opportunity. Investing in duplexes and four-plexes can give you a place to live while also bringing in an income from renting out the other units.

 

Retirement Fund

Even an extra $100 a month into a Roth IRA can be a great way to store up for the future. You can start one of these as soon as you turn 18 as long as you meet the income requirements. It’s one of the easiest ways to invest for the future before you start your career. Once you get into the working world, you may be eligible for things like a 401K and company matching. These investment accounts can increase your wealth and give you a comfortable nest-egg to retire with. Some people retire earlier than others because they invested earlier.

 

Cryptocurrency (Maybe)

Right now, cryptocurrency is gaining in popularity, but is it a wise investment? Let’s look at what it is. In essence, cryptocurrencies are units that are backed by a technology company, a technology process, or a technology product. There are also meme coins like Dogecoin that are popular, but don’t have anything tangible to back it. Cryptocurrencies run on the Blockchain and in many ways are similar to stocks in that they rise and fall in value, can be sold, and traded to get something different.

Cryptocurrencies leave many people feeling like it’s just gambling. While others see the value in the technologies and what they can do for people. If you plan to invest in some cryptocurrencies, it’s best to think about it like the stock market. Don’t put anything in that you can’t afford to lose. Do your research to find crypto coins with good use cases. And don’t put all your eggs in one basket. Just like a stock portfolio, cryptocurrency investments should be diversified.

These are a great investment for college age students because the barrier to entry is low. You can put in amounts as low as a few dollars to start. There are apps and videos explaining how it all works, and some apps even give you free coins to learn more about cryptocurrencies.

 

Education

The last thing that college students want to think about is more education, but it’s a very wise investment for many students. In education for instance, teachers with a Master’s degree can command up to $3,000 more in salary in their first year of teaching. This rate increases significantly as the years of experience go up. It also qualifies them for positions in education that are not available to those with only a Bachelor’s degree. Nurses who complete a BSN to DNP program for instance are able to practice medicine under a Physician. They have an immense opportunity to diagnose and treat sickness.

Why is education such a good investment? It’s because once you get it, it cannot be taken away and you will always have it. College students should consider education in fields that are in high demand with a good outlook on income potential if they want to maximize their investment.

 

Conclusion

The keys with investing in college is to never invest money you can’t afford to lose and to diversify your investments. This means investing in different kinds of things. A diverse investment portfolio will be an asset during college and beyond. 

Posted by Akeela Zahair