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How to Make Money From College by Investing Your Money

Investing money while attending college proves smart for any college student. You might be thinking, “How can I invest when I’m barely making enough to feed myself?” Breaking loose from your parents grip can be a stressful time in your life while becoming an adult and making it on your own. How does one invest money while going to college? It takes some planning but you will find, it is not impossible and in the future, you will be glad you invested.

Write down your expenses

Take some time and write down all the basic expenses you face while attending college. Some hints are textbooks, food, rent, and the ever-increasing price of tuition. If you have a car, you want to consider gas, maintenance fees, and insurance and car payments if you are paying on the car. Estimate what you pay to eat out daily as well as snacks and drinks.

Eliminate some of your expenses (if possible)

Your goal should be to eliminate some of these expenses with common sense factoring. Eliminating some of these expenses is something you must do to prepare for investing your money. If you are paying rent, move back home with your parents. Search for a smaller place to live with smaller rent payments. If you live close to your college, get rid of the car. Getting rid of your car will eliminate car and insurance payments along with maintenance and gas fees. Are you eating out a lot? Start packing your own lunch or eat in the school cafeteria, which proves cost efficient. Performing these tasks will help you in your process of investing money.

Why would I want to invest money while attending college?

There is not a doubt that kids do not think about investing money, especially while attending college. Attending college is supposed to be a fun time in your life. Where this is true, investing as much money as you can (even if only a little bit) during this time in your life, you will be one-step ahead of other college graduates.

Why can’t I wait to invest after graduation?

Most people do wait until they graduate from college before investing. Most people want to invest after graduation but the truth is, most people do not. People tend to wait until they are in their thirties or forties to invest. In other words, people prolong investing into their future, which ultimately means, when they retire, they will not have a lot of money invested. If you begin while attending college, you are ensuring that you will have a nice nest egg for you and your family someday.

Where do I start?

1. Bonds or stocks

Bonds and Stocks are great ways to begin investing. These two things prove to be great investments over a period.

2. Interest bearing savings account

Designate some money out of your financial aid and other means to be placed in the savings account. Set the account up as an account that cannot be withdrawn from. If you are insistent on adding money to this account over a period of four years, you will be pleased with the amount saved upon graduating from college.

There are numerous ways in investing money while attending college. It might appear as a royal pain in the butt at first but trust me, you will be grateful you invested when you graduate. Investing your money while attending college is a first step in securing your future. It is always a smart idea to get into the habit of investing and saving money. Keep in mind, the earlier you start investing, the more you will have when you retire.

5 Reasons You Should Invest Your Money

These are the various why you should invest your money to make it grow:

• When you invest your money works for you
• A residual income is what you get from investment
• Investing gives you time to pursue your other dreams
• It has higher interest rate than bank account
• You have more time for your family

Let me explain them one by one. When you work either as a self- employed businessman, a civil servant or employee in an organization or enterprise, you are working for money. When you stop working the money stops coming. In some organizations, if you are late for work, your salary or wage is reduced. But when you invest, your money works for you. Money is a very good employee, it works very hard and earns much for you.

Another good point of investment is that it gives you a residual income. This is a type of income that keeps coming years after you did the work. Unlike linear income, that you get when you work once, you get paid once. To earn residual income, you work hard once and you keep earning from that same one work, years to come. Invest your money once for example in the stock market and you will keep earning dividends every year till you decide to sell off your shares.

One of the best advantages of investing to me is the ability to spend quality time with your loved ones. What is the use of working very hard to give your family the best and yet be a stranger in your home. I heard a story about a banker who lives home before 6 in the morning and comes back around 11pm when the children must have slept. He works so hard that he goes to work even on Sundays. One Sunday he didn’t go to work and his children greeted him as uncle and asked their mum who the uncle in there house is.

The interest you earn from investing certainly beats any interest rate you can get from any bank any day, anytime. To be modest you can consistently earn 10-15% on the money invested in good stocks annually. Not to talk of the interest rate in real estate, forex and others. Compare this to the 1-3% you get from banks, highest you get 4%. Of course there is also the risk of losing much money investing, but that what makes the gains so much. As they say, no risk, no reward.

And with proper education, like the one you are getting here, you’ll do it right.

The Best Ways to Invest Your Money in 2010 and Beyond

You may be discouraged in looking for the best ways to invest your money in these recessionary times. After all, everything in the economy appears to be a sinking ship especially in the financial investment sector as evidenced by stock prices going down, big investment houses going bust and notable investment personalities being busted.

Then again, the recession is the best time to invest simply because there is nowhere to go but up! It is only a matter of time when the economy becomes better and the investments you made will appreciate in value. Or to put it in stock trading terms, you will be buying low and selling high, thus, your potential profits.

Now that the appropriateness to invest in the recession has been established, your next question will be about the best ways to invest your money. Your ultimate goal, of course, is that potentially big profits can be yours when the economy goes up.

Well, one of the best answers would be to look at long-term and short-term investments so as to ensure that indeed you portfolio is a balanced one. Besides, it does not pay to place all your eggs in one basket, as the saying goes.

For long-term investments lasting 10 years or more, you should start looking at your real estate property specifically your home and your retirement fund. If your home has escaped foreclosure and you still have a job to pay for its mortgage, you must look into a fixed-rate mortgage preferably with a 15 year term or less.

If you cannot afford the mortgage because of financial difficulties, negotiate with the bank for a short sale. Then rent an apartment, save up for a new house and aim for a stronger cash position. When the housing bust is over, you can purchase a new house. You will then realize that, oftentimes, the safest and best ways to invest your money is to place it in a bank, earning interest without any effort on your part.

As for your retirement fund, you may need to look into adjusting the premiums on your 401(k). Your safe bet in many cases if you are aiming for early retirement is to place the money in safer investments like government bonds.

In the intermediate term of 5-10 years, you should pay off all your debts especially credit card and payday loans. These borrowings have significant adverse impact on your financial status because of the high, even usurious, interest rates, membership fees, late payment penalties and universal default charges. Once you stop paying these charges, you can then start to save for investments in vehicles like gold and currency exchanges.

You must also have short-term investments in terms of relatively high-yielding savings account. Your deposits must equal several months’ worth of living expenses that you can dip your hands into in cases of emergencies. Or you can treat it as a rainy day fund for when you lose your job for a few months.

The bottom line is that the best ways to invest your money is to make sure that you have investments spread out for the long-term and the short-term. Save as much money as you can, start your business when necessary and do part-time jobs.