Save smart and save early with the right investment plan, to make your future beyond college secure, and worth looking forward to.
They say “time is money” and indeed, it is so for us college students. This is our time to gain knowledge beyond the courses that we are enrolled in, which will in turn prepare us for the big challenges of the ‘real’ world. One of those challenges is in the financial sphere and entails savings. Trying to save small increase wealth will go a long way in our lives as adults, which has only just begun. Here are some ways how you can go about it:
- Start off by opening your own savings account. The procedure isn’t long and it gives you a sense of freedom. Even from the pocket money which you receive, try putting aside some meagre amount into the account. Think of it as an emergency fund, put it aside in the beginning of the month and if you feel broke by the end of month, you may use some of it. Savings accounts give you interest on your money, but the return doesn’t feel like it’s too much, until the amount you add to the account increases over time.
- An easier way to earn some cash is to sell your old stuff, like clothes, used electronic items, books etc. This money can either be invested or used later.
- For the courageous ones amongst you, investing in mutual funds is a great way to increase wealth, and it can be encashed whenever the investor wants. Monthly SIPs (Systematic Investment Plan) is the best way to invest in mutual funds, which are safer than investing in shares and debentures. There are numerous companies out there which invest your money in safe projects and from which you earn interest later.
- For those adventurous investors who don’t mind taking risks because you learn from your mistakes, equity funds are the answer. Before you begin investing, you require a Demat account, which can be opened with the help of any broker. Equity funds or shares require a lot of research about the company, its projects and so on, but the return on equity funds is generally more than mutual funds.
So start investing early and have a good back-up plan for some emergency or just in case you need cash for some fun (Say, how about a spontaneous excursion or your dream of travelling alone?).
Feature Image Credits: allbusiness.com