Why You Should Start Investing Before You Finish College

Why You Should Start Investing Before You Finish College

The value of investing early.
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We’ve all seen the charts in our high school economics class. Bill invests $5,000 a year from age 25-35, which is a total of $55,000. Frank invests $5,000 a year from age 35-60, which totals $130,000. Bill then ends up retiring with $615,580, and Frank ends up retiring with only $431,754. Even though Bill invested a lot less than Frank, he will still end up with much more money when they both retire at 60. How does this work? Two words: compound interest.

That scenario I just explained only occurs with 8 percent annual return. That means you gain 8 percent interest on your money every year. This will never happen through a savings account. According to CNN Money, the average savings account earned an average of 0.06 percent annual interest in 2013. That means if you have $500 in a savings account, you will earn $0.30 of interest for that year; that’s pretty sad. This doesn’t mean that banks are totally pointless. Checking accounts are good for paying bills and savings accounts are good to store short-term savings. I just think that long-term savings and retirement should be able to grow on their own and work for you.

I started investing when I was 17, so I now have three years of experience in the stock market. I am far from an expert and have made my fair share of mistakes, but I’m glad I’m learning now. I’d rather make those rookie mistakes when I have less money at stake and less risk in my life. The compound interest alone is already a good enough reason to start investing before you graduate college.

Most college students aren’t investing for a few different reasons: they don’t want to lose money, they have bills to pay or they just don’t have the money to invest. Whatever the case may be, investing before you graduate college will actually put you ahead of the game compared to most millennials. According to CNBC, over 80% of millenials are not invested in the stock market.

I get it. Everyone is in different stages financially. Some students are already very well-off ,and others are already in debt paying for school. By simply working hard and saving, you are already doing more than most students do anyways. Investing can take that to the next level for you. You won’t just get my beloved compound interest, but you will learn more about great companies and the various sectors that shape the market.

Hard work and saving will always work out, but don’t be afraid to make your money work for you.

Cover Image Credit: The Huffington Post

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8 Reasons Why My Dad Is the Most Important Man In My Life

Forever my number one guy.
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Growing up, there's been one consistent man I can always count on, my father. In any aspect of my life, my dad has always been there, showing me unconditional love and respect every day. No matter what, I know that my dad will always be the most important man in my life for many reasons.

1. He has always been there.

Literally. From the day I was born until today, I have never not been able to count on my dad to be there for me, uplift me and be the best dad he can be.

2. He learned to adapt and suffer through girly trends to make me happy.

I'm sure when my dad was younger and pictured his future, he didn't think about the Barbie pretend pageants, dressing up as a princess, perfecting my pigtails and enduring other countless girly events. My dad never turned me down when I wanted to play a game, no matter what and was always willing to help me pick out cute outfits and do my hair before preschool.

3. He sends the cutest texts.

Random text messages since I have gotten my own cell phone have always come my way from my dad. Those randoms "I love you so much" and "I am so proud of you" never fail to make me smile, and I can always count on my dad for an adorable text message when I'm feeling down.

4. He taught me how to be brave.

When I needed to learn how to swim, he threw me in the pool. When I needed to learn how to ride a bike, he went alongside me and made sure I didn't fall too badly. When I needed to learn how to drive, he was there next to me, making sure I didn't crash.

5. He encourages me to best the best I can be.

My dad sees the best in me, no matter how much I fail. He's always there to support me and turn my failures into successes. He can sit on the phone with me for hours, talking future career stuff and listening to me lay out my future plans and goals. He wants the absolute best for me, and no is never an option, he is always willing to do whatever it takes to get me where I need to be.

6. He gets sentimental way too often, but it's cute.

Whether you're sitting down at the kitchen table, reminiscing about your childhood, or that one song comes on that your dad insists you will dance to together on your wedding day, your dad's emotions often come out in the cutest possible way, forever reminding you how loved you are.


7. He supports you, emotionally and financially.

Need to vent about a guy in your life that isn't treating you well? My dad is there. Need some extra cash to help fund spring break? He's there for that, too.

8. He shows me how I should be treated.

Yes, my dad treats me like a princess, and I don't expect every guy I meet to wait on me hand and foot, but I do expect respect, and that's exactly what my dad showed I deserve. From the way he loves, admires, and respects me, he shows me that there are guys out there who will one day come along and treat me like that. My dad always advises me to not put up with less than I deserve and assures me that the right guy will come along one day.

For these reasons and more, my dad will forever be my No. 1 man. I love you!

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Dave Ramsey, Thank You For Sharing Your Money Tips And Knowledge With The Rest Of Us

From just starting your program and being only on baby step one I have realized many things.

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Ever since starting college I have always had that thought in the back of my head about how am I going to pay off my student debt after getting out of college. This is probably a thought that every student has when they attend college and they know that after they receive their education that they are out in the real world where they have payments to make every month and probably be in debt for most of their life. But after watching your podcast and following your Instagram and seeing all these people paying off hundreds of thousands of dollars in a couple of months is very inspirational.

Paid off student debtDave Ramsey Instagram

From just starting your program and being only on baby step one I have realized many things. One, I spend money on a lot of things that I don't need but never realized until I started tracking my spending to make a budget. Two, saving a thousand dollar before actually tackling your debt is a great task as it shows that if you can save a thousand you can find a way to pay off your debt then. Though it does seem like a long process that doesn't seem possible till you finally hit the triple-digit mark. Three, you don't actually need a credit card in life because you will actually have money you can spend instead. Though I am still wondering how exactly this would work later on with wanting to buy homes and cars.

But overall thank you for sharing your story and knowledge about money and your experiences so others can learn and do better with theirs. So let's all be weird and not broke as you like to say.

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