Ever Heard of Wall Street?
You probably hear about it all the time: the DOW's constant fluctuations, the NASDAQ, and, new in today's world, cryptocurrency. People of all ages talk about when to invest and when to sell their shares, and Wall Street has never been busier with initial public offerings occurring weekly.
To have stock, you need to invest. And you can't invest if you don't have much money to spare - especially if you're a college student.
However, if you were to invest in a company like Apple back in 1980, you would have made a 700% return on your investment. And many reputable business professionals would say that it is best to invest at a young age so that the investment has time to mature and generate value. Some would guarantee that this is true, and say that it is imperative to invest now.
What's Stopping You?
Fear and Inexperience
Maybe the fear factor keeps you from investing. The fear of losing or spending money is a common fear among all of us. Fear related to inexperience is quite common - you may not know much about the stock market, about investing, or even how to get started.
Lack of Money and Interest (No Pun Intended)
Being a college student or young adult, you hardly have any money in the first place. Maybe you just never really cared about investing in the first place, and see no need to. That's fine - it takes a lot to put money into something and not get instant results.
Then Again... Why Not?
Disposable Income
On the other hand, some students have their college expenses paid for by their parents or through scholarships. Some may have part-time or work-study jobs that allow for disposable income. Instead of a Starbucks drink every day, that money could be put towards investing.
Inflation
On a day-to-day basis, you don't notice this: the value of your money is constantly inflating. The dollar value fluctuates daily, and the cost of living, as we know it, is rising. In fact, the cost of college tuition is expected to increase as well in the coming years. Invest now, and you could have the chance to be able to pay off your tuition once you graduate.
Learn How to Manage Money
Learning about investing and how to handle your budget in school is great. However, learning how to do so with your own money in the real world is a whole different story. Ask any entrepreneur and they'll tell you how different things become when they're dealing with their own money.
The Answer: What Should You Do?
The truth is, one can surely take the safe route and not invest. There are more important things to take care of, such as focusing on schoolwork and paying for college expenses. One can also choose to go for it. That's all up to the reader of this article. There is no true answer to the question of whether or not a college student should invest - it all depends on how much risk one is willing to take.
However, if you choose to invest:
1. Be patient with your investments! It only takes one time to strike gold, but you've got to wait. That's the fun part about Wall Street - the stocks are unpredictable!
2. Research the company (or companies) you're putting your money in. Take a look at their annual earnings and news about the company and the CEO.
3. Don't forget Rule #1. Just because your stock investment dips, DO NOT be impatient and sell! The value of your stock will come back up with time. Remember: Buy low, sell high!
