Being a student can be financially challenging, as you may already know. There are college fees, textbooks, cool clothes you want to wear to classes, parties and whatnot. And to bear all these expenses is not an easy task. But fret not! We’re here with the best investment strategies for students to enjoy the best phase of their lives.
Believe it or not, college is the prime time to dive into the personal finance ocean and learn all about managing your money the right way.
Enough chit-chat. Let’s move on and take a look at those investment strategies, shall we? 👇
Make Monthly Investments
As a student, making monthly investments is a savvy move to kick-boost your savings while in college. By committing to investing a fixed amount each month, you can develop a disciplined saving habit and take advantage of dollar-cost averaging.
Now what’s the trick? You can choose an investment account or any platform that will allow you to make recurring deposits every month, such as a brokerage account or a robo-advisor.
Start with the baby steps if you are on a tight budget. Even if you save 3 thousand to 5 thousand bucks a month, you can make a huge difference over a couple of years. Consistency is the key friend.
Read the Charts and Plunge into Crypto
Cryptocurrency has become the talk of the town and for all good reasons. As a Genz investor, you may be intimidated in the beginning because let’s face it, crypto is tough to understand.
Make your student investment after looking at the charts and doing your due diligence research. For example, if you are a beginner, you can make an investment in stablecoins like Bitcoin or trusted altcoins like Ethereum. And once you have spent some time in the ecosystem, start your research and explore more coins that can give you unbeatable returns.
A small note- The crypto market is highly volatile. The prices can cross the ceiling at one moment and go extremely low at the very other moment. Make sure to only invest what you can afford to lose. Diversify your portfolio to sail in a safe boat and always do your own research.
Consider a High Yield Savings Account or CDs
Did someone ask for yet another best investment strategy for students? Because we have got just what you need to read. If you are someone who wants to grow the money while playing safe, this can be your go to investment plan.
All you need to do is open a high yield savings account or certificate of Deposit aka CDs. This way you can bag higher returns than the basic savings or checking account while having the liberty to withdraw your money anytime you need it. Sounds dreamy, does it not?
While investing in CDs, you can expect a fixed percentage of gain upon locking your money for a certain amount of time. This is one of the most preferred student investment plans in India in 2023. Moreover, you do not have to go through the hassle of doing hours of research like in Crypto or Mutual Funds.
Invest in Mutual Funds via SIPs
Opting for SIPs is one of the best investment strategies for students. You can decide on a small amount that you wish to invest every month and set a systematic investment plan aka SIP.
But make sure to do the due diligence on which mutual fund you want to invest in. The right fund can help you cut out a good chunk of profit whereas the wrong one can gulp all your hard earnt money. You can also take advice from an adult or a professional if you are someone who is just starting out.
Opt for Fixed Deposits
If you have got a good amount of money to invest without taking even the slightest bit of risk, this is all you need. Considered to be one of the safest investment options, a fixed deposit will offer you a certain amount of money over a fixed period of time.
Although the returns would be lesser than that of Mutual Funds of Cryptocurrency. However, as a student, it’s crucial to prioritize low-risk investments that offer steady returns.
Some Key Tips:
- Investing early is the best thing you can do in your life. It provides you with a financial cushion and prevents you from any scarcity.
- Investing does not mean that you have to kill your basic requirements to save more money. Start with a journal, fix an amount that you want to spend and stick to it.
- It is very important to know your needs before making an investment. If you are a long term player, you can consider an FD. If you are a risk taker who wants to make some quick cash, you can invest in crypto or mutual funds.
- Check the charts, do as much research as you can. Remember, it’s not the number of investments that help you earn the bucks. Rather, it’s how wise the investment is
- Utilise a student friendly lifestyle app to save some extra money. Just like Akudo which gives you rewards and cashback on every transaction to promote the idea of financial freedom in teens. Akudo is a neo bank that is specifically crafted fro teens from 11 to 18 years of age and oh, did we mention it? The card comes in super dope designs.
- Lastly, don’t forget to have some fun. Once you have made the investment and carved out a profit, spend a little on yourself. You deserve it.
Bottom line
We are sure you must have heard about the phrase below.
‘Work so hard that you can retire whenever you feel like it’
Well, if you actually start making investments and follow the right investment strategies for students, you can actually retire at your own will.
So friends, take this as a cue and get those investment wheels rolling.
