Why As A Student Investing Makes You More Money
November 16th, 2009 | 
Author: Why As A Student Investing Makes You More Money
You may be wondering why as a student, investing would be a good thing to do. You have little cash coming in and a lot of expenses going out. Could you not wait until you’re older, employed and no longer a poor student? Investing is one of those things though that pays you back, if you’ll excuse the pun, disproportionately.
Thanks to the compounding effect you will get a much greater return by starting now instead of putting it off even 5 years for example. You see it’s not just the amount you save over that period it’s the fact that your investment will have grown along with the stock market. And by re-investing your dividend income you can see your investment account grow even faster.
Obviously the markets can go down as well as up but over the mid to long term it’s fairly reasonable to assume they will rise. Just for the sake of an example the FTSE, one of the Worlds leading stock exchanges, at the end of Jan. 03 stood at 3567.4. Five years later it was standing at 5879.8 and that at a time of economic instability around the globe. Now as I said a moment ago markets can go down but don’t see that as necessarily being a bad thing.
Ok that might sound like crazy talk but that’s the reason you need to think like an investor. If you are in the market for the medium to long term you will see fluctuations – fact. But over time good quality stocks will always come good so if you can buy them when the price is low you will benefit far more when the market recovers.
If you decide to invest by making regular payments into a savings account you will notice the effect of compound interest even more. That’s because you will be earning interest on interest you have already accrued. By using compound interest you can get your money to work hard for you rather than you working hard for your money!
One of the other great benefits of investing while you are in college is that it gets you into the habit. After all if you have the discipline to save when your earning powers are limited you will almost certainly be able to do it throughout your life and reap the financial rewards. That really is a great reason to begin as a student investing right now.
Posted in Personal Finance
These ideas are not bad but I think anyway hard to realise for a student. Maybe for some but I think the majority has non money for this investment.
very nice. thanks !
Hi
Betterto live live to the full when you are younger than pentioner.Sorry if a was offensive,it is the truth.
Hmmm, Great Article, thanks for this information. I need some more research in this area to know the little details.
Thanks
It’s a nice day for the markets…
Very informative insights, on my own perception it would be worth for a students to invest money since if they will be bankrupt from their investment they can still have someone who will support which is their parents right? Just an idea..LOL
I think anyway hard to realise for a student. Maybe for some and More Money. thanks…
Hi Thanks for works
Good article!
I think that qualified people with diploma have high opportunity to find good job and make successful career.
Invest in the internet, that’s how I do it. Buy unique content, writ like crazy in combination with adsense. No risk, all money.
nice tips, thank you for sharing this to us
This is definitely true. I cannot agree enough how important it is to start investing beginning in your college years. Not only is it a great way to ensure that you will have a LOT of money saved up by the time you retire, but while investing this young you have room to take risks! In other words, if you lose money investing while in college, you have nothing to worry about. It is a different story if this happens near when you retire
A very good post, thank you.
Great idea to earn money but i think hard work and positive attitude is most essential in this case.You have shared great tips which one important to me because i am also a student.Lots of thanks for it.
Another point to consider here is a Learning curve. While your a student and you may not have much to risk, you will still gain the knowledge needed (ideally) to help you fine tune your trading for the future. Whilst it may seem like a waste of time to start with pennys, it will help you learn about the markets, develop strategies and may even allow you to start building a trading roll to use.
Interesting topic.I think its a really good idea for students to save money..It will really help them in future.
The student should’ve been learnt in the early ages by his or her parents that money is valuable and not to be thrown around with.
Great article.