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Learning to Invest in College

Some people wait until they are in their forties or fifties to start investing their money, but by then it’s often too late to see any great change in the amount of money you have saved up. The truth is that the best way to really see a return on your investments, no matter what they may be, is to invest for a long period of time. That’s why a lot of people are starting to teach themselves about the best way to invest money at an earlier and earlier age. So long as you’re of legal age to work, you’re of legal age to invest, and you never can start too early. Here are some pointers on learning to invest in college.

Build Your Savings

Before you can even begin to think about investing your money, you have to save up a bit so that you have enough money to play with. You should never be playing with money that is better intended for feeding yourself or paying bills, because at the end of the day, investing money is still gambling. However, if you are a smart and calculated person, you can learn how to make wise investments that are very low risk. In general, you should probably have at least $1000 in savings before you can even start investing.

Open a Roth IRA

If you have at least $1000, you can start a Roth IRA. This is a retirement account that invests your money in very basic, boring stocks. These are what you call potato stocks, they always increase in value, but very very slowly. However, this is the type of situation that really serves those who are smart and patient. The earlier you start investing in your retirement, the more you will have, and every year increases that value by wide margins. The other great thing about a Roth IRA is that it isn’t automatically pulled from your paycheck every month and left waiting to be taxed the day you retire. When you contribute money to this account, it is money that has already been taxed, so the amount you see is the amount you’ll get.

Watch the Market Closely

If you want to start investing very specifically in different companies, then you are going to have to really start watching the market. You should definitely invest at least 6 months to observing the market and tuning into different stock market publications before you actually invest any of your own money in a single stock. If you don’t know what you’re doing you could easily get swindled by a shady stock broker.

Take Your Time

You definitely want to take your time when you start investing. Time is always on your side when you’re this young, so you don’t want to get crazy just yet. Small investments today will have huge returns when you are much older, so just be patient and don’t be upset if you don’t see huge growth right away. If there are two things that get people into a lot of trouble when they are just starting to invest, it’s impatience and false confidence. If you are earning your degree online with a university like ACU Online, then there will be all kinds of courses in investment economics that you can take, even if it has anything to do with your major.

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