Something that you may want to do while at university is start investing. Investing as a student can have many benefits in the long run, as you are setting aside some money that will accumulate in value over time, which means that you will end up with more money than you started with, which I guarantee every student would enjoy (extra money is always a plus). While the advice out there is not particularly helpful and very vague and will likely leave you needing to do more research (trust me, I wrote this article), investing is a very individual thing, so researching what you want to invest in and what you find interesting is important. So, here is our guide on how to invest as a student:
How Much To Invest?:
The first question when it comes to investing is how much you are able to invest. Before you get started, it’s important to be able to budget well. You should prioritise rent, food and other daily expenses before working out how much you are able to put towards an investment. While you may not have as much disposable income as a student, this isn’t seen to be a big deal, as you are able to start investing with very little. Many advisers suggest that investing little and often is the best strategy, as this gives you practice as to how investing works and will help you to develop confidence as you learn more about investing and become a better investor over time.
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Where To Invest?:
Another important question. As a student, the safest option is to put your money into an index fund, which is a basket of funds that track the market and produce the same returns as the market does. This is done through a Stocks and Shares ISA and it gives you a £20,000 yearly allowance that is completely tax-free. Something to keep in mind is that the market will fluctuate over time, meaning that you may lose some money, however, in the long run, you will be gaining money. If you put in a little money every month, the amount will accumulate and form a nice emergency fund, then the possibilities of what you can use this fund for are endless – it’s all your choice!
Check out this link with a list of platforms to decide where to invest your money.
Keep Up To Date:
While of course you’ll be busy with uni work and having a social life, finding some time to learn more about investing and keep up to date with the world will only help you in the long run. There are so many things you can do, from following market trends online or signing up to something like the Economist, which is currently offering students a £10 subscription for the first month (£17.90 per month afterwards) or an £89.50 for the first year subscription (£179 a year afterwards), to follow market trends. Also, another simple thing you can do is see how other people invest, on Reddit forums or on other social media platforms, where just as you do at uni, you can learn from other people and this will help you to become a better investor over time.
It can be scary to invest as a student, there’s no doubt about that. However, the most important thing you can do is take that step. If you make the decision to start investing as a student, this will have overall a better impact than waiting to invest in the future. It can be scary, but if you’re going to take away one thing from this article, it’s to make that first step into the world of investing. With a little research, practice and knowledge behind you, who knows what awaits.