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How to start investing while you are still in college

Handling your money is a skill not many people would have talked to you about unless you begin earning. However, modern times have found even college students taking up jobs and freelance work. So if college-goers invest their wealth judiciously, they will be placing themselves at an advantage over those who start later. Moreover, they will be able to develop their finances to reap the benefits in the long run.

Are you planning to have that much-awaited trip on your bucket list with your savings? Wait on, because once expenditures keep cropping up in the future, you will perhaps ponder over whether this trip was worth it. Fortunately, new online investing platforms have simplified the investment process for young investors, evading the restrictive account size minimums and high broker fees, among others.

Go digital, switch to an investment app

It is far from impossible that you might not have come across ads on apps that claim to streamline your investments. These are a great option to simplify your investments. All you need to do is create an account. Not only can you buy tax saver mutual funds and keep track of the same, but you can also save up taxes with no brokerage at all! Go for it if you are not willing to consult a broker or wish to avoid heavy paperwork owing to college commitments.

Consider your risks

You’re young and probably investing for the long term. At the same time, you have the time to withstand the dive and rise. This indicates that you should invest in stocks. The biggest mistake that one would make is not sticking with investing after suffering some initial losses. To prevent this, you can probably start with a more balanced portfolio to deal with market ups and downs. By a balanced portfolio, we mean typically 60 percent stocks and 40 percent bonds.  More bonds, lesser account fluctuation.

SIP investments

Systematic Investment Plans (SIPs) are becoming increasingly popular with youth owing to the convenience of investing a small amount over a long period to build a huge corpus. Besides, the fact that SIP is the best instrument to beat volatility in different market phases over a long period makes youngsters curious about how to start SIP investment.

Conclusion 

Lastly, it is pertinent to note that investing takes time. Avoid hypervigilance and start investing today.

 

Written by namita mody

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