Pratham Arora
One of the hardest things as a college student is to plan for your future. Seeing as how big a transitioning college is, understandably, thinking about investments is the last thing that comes to mind.
That said, our mission here at IT MAKES CENT$ is to encourage students to start being aware of their finances and to put themselves in a position of financial strength for the future. I have personally made some of these investments being a college student to ensure that I am well set up for the future and I hope that it enables you all to do the same.
Buy in Bulk
Being college students’ money is extremely tight for most of us and so one of the best investments you can make to make your money stretch is to buy things your groceries in bulk. Seeing as most of us have roommates, splitting up a Costco or Sam’s Club membership and using that to buy essentials like Toothpaste, Paper Towels, Toilet Paper, Peanut Butter, Cereal, Oats, and many other things in bulk quantities can be some of the best investments you can make as a college student. This is because it’s cheaper and you get way more out of it than if you were to buy these items at their normal size.
Investment Apps
Another great way to plan for your future is by making small investments through an investment app like Robinhood or Acorns. The best thing about these two apps is that they don’t require large amounts of money for you to be able to invest. As a college student this is perfect because even if you have $25 to $30 left over, you can use those savings and buy fractional shares in Robinhood. In time, with those savings, you can own full shares of the stocks you invest in. I used this strategy when I started my portfolio two years ago and it’s something I feel that all college students should use to their advantage.
Retirement Planning (ROTH IRA)
Thinking about retirement might come off as a big surprise to many of you. However, you will be very grateful that you opened your ROTH IRA in college and put aside small amounts of money periodically. The best part about a Roth IRA is that any contributions you make towards it are already taxed. This means that when it comes time for you to withdraw money from this when you retire at the end of your career, you will NOT owe any tax on it. This is a great investment to make as a college student because you fall into the lower tax bracket which means you don’t have to owe a lot of dollars in tax in comparison to if you were to open your IRA later in your career.
To close, these three investments are the best you can make being a college student that will set you well not only in college but also going forward in life and your career. You will be forever grateful that you started early when you look back forty years from now so get out there and make your future today!
Comments