Investing as a student? We have 7 recommendations + 1 bonus recommendation for you. Start your way leading to good money
13. 03. 2020
You are never too young to invest. On the contrary, the sooner you start to take care for your money and work to secure a happy future without dealing with your pay day, the better. Sometimes, it is not easy to navigate through the world of investment.
People say all kind of things and it takes a lot of time to follow and predict the development of prices of shares, funds or commodities. It is better to devote this time to more amusing activities. How to work on your investment portfolio that will move you forward while ensuring a good passive income (i.e. money not earned by your active work)? We have prepared 7 recommendations + 1 bonus recommendation. Thanks to them, you will find out how the investment world works in 5 minutes.
1. You never know when you´ll need the money.
If you do not have a steady income, do not forget that there might be a situation when you are going to need money or something exchangeable for money urgently. As for the investment, you must follow so called liquidity. You can quickly exchange liquid investments for money or another property, which will protect you in moments when things won't go so well.
2. The future, yes, but not too far
It's not the best way to investigate the future too far because you do not know exactly for what and when you need the money. Retirements savings, which you will not be allowed to use for a long time since its setting up, are investment that you do not need at this time. Start with it when you are 35.
But do not forget to investigate the future. It is ideal to find a long-term prosperous investment that has a solid liquidity. It means that it's going to work for a long time, you're going to capitalize on it, and at the same time, you are going to sell it fast if you need it.
There are no doubts that it is good to grab for a historically proven asset. You save to it, it works as a safeguard against worse times, and at the same time, you can sell it fast anytime and anywhere.
3. Regularity is important
As for the investment, it is not important how big the budget is, mainly at the very beginning. The main thing is regularity. When you start your investing career at a young age, it will be enough to set aside 5–10% of your income while creating your investment portfolio. The small things you do regularly have a greater sense than the great things done on a one-off basis. It's the same everywhere. Be it exercising, learning or investments.
4. Talk to your parents.
Are your parents saving for you? Can they start now, e.g. cut a piece off your „pocket money“ and put it into something that will bring profit later? Talk to them, go see a financial advisor and find a common way where they start to save a part of money.
Even here, it is better to grab for more liquid forms to which money will be stored gradually.
When you reach e.g. for our iiplan, with 500 crowns per month, you are going to have solid money in gold at the end of the school, which is, without doubt, one of the best investments. Its price has been growing for a long time, and you can pay with it anywhere in the world.
5. You can still take the chance
Youth has a lot of disadvantages; however, one undeniable investment advantage is that you are here (for the time being) on your own – without the kids you have to feed and without a mortgage on your neck. Is there any better time to risk?
You can reach for very profitable, but riskier investments such as shares. But be careful, don't put everything on one card and in addition to risky investments, find safe ones that will cover your investor´s back.
6. Building savings? Obviously!
Compared to retirement savings, buildings savings are worth it. The sooner the better. In future, you are going to deal with housing, and in view of current situation, ensuring means for this purpose is almost a necessity. After moving to your own house/flat, you will decrease the initial investment by means of it, and thus, you will not be burdened so much. Besides, having your own real estate today is worth it.
7. Divide and rule
Look at your investment as a whole and do not focus only on one investment. Nowadays, there is a trend to divide money into three areas – securities (shares, bonds and others), real estates and commodities. Each part fulfils its specific function and together, they work in every weather.
As for the property, you may start with your own flat for which you save by means of your building saving. As for the commodities, we recommend grabbing for gold as money insurance. Gold resists inflation (simply put, a reduction in the purchasing power of money) while prospering in times of crisis.
+1 bonus recommendation Get a second opinion.
If you are not interested in graphs of prices of individual assets and offers of saving and investment products, trust the expert care. Financial advisors enjoy this most of the time and can advise on how to start saving and where to invest.
At the same time, reach out for saving and investment programmes that can be adjusted to your needs while taking care for all the boring stuff around. You can read here why our iiplan is such a programme.
Now let's just wish you a lot of luck in investing. If the article has helped you, we will be happy if you share it on your networks and expand horizons of your friends as well.