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Retire Young Investing for College Students - Tips and Advice
Ask yourself: is it better to bury your money in the ground (where it will lose value due to inflation), or retire young by investing money to let your dollars grow?
Investing for college students and investing for teens makes sense - it's all about making your money work for you - so you can retire young!
And best of all by investing while you're in college or high school, you have plenty of time to invest and see your money double, triple, quadruple... Because the earlier you begin investing, the more you can theoretically increase your original investment.
Invest Young, retire young! Once you have assessed your budget and are confident in your ability to live within that budget, you can proceed to make your money work for you through smart investing.
What is investing? Simply put, it means committing money to earn a financial return. Investing for college students and investing for teens will give you a head start and is how you can make your money grow without work.
Not only is investing an important part of your financial future, if done right and at the right time, it can make your life better allow you to retire early and use your returns: free money and less work.
Some people even retire young and live off their investments. Could you one day be sunning yourself in a tropical paradise - thanks to the investments you made?
Why do we invest? Imagine being able to earn money while you sleep, vacation, study, shop... all day, every day! This is possible by earning profit and income by investing your savings in index funds, real estate, and entrepreneurial endeavors.
So, what is the goal of investing for college students and investing for teens? The goal for many is to retire young and to secure the kind of future that you really want. Being financially comfortable gives you the freedom to live the lifestyle of your choosing. The ways you can retire young are by building up your net worth, and cash flow.
Large Net Worth - When you build up a large enough net worth to live the lifestyle you want - whether financially free or comfortable - you are living life on your terms.
Cash Flow - Cash flow is the amount of money coming in on a regular basis from your investments.
Besides, have you ever thought of it this way - if you don't invest your money you won't retire young and you are actually losing money! Yes, it sounds strange, but it's true. There is a consistent increase in the general price level of all goods and services. This is known as inflation. Because of inflation, if you don't invest your money now, the $100 in your hand will only be worth $80 in a couple of years.
This is why you can't just throw your money inside a vault and hope for the best. Sure, you'll still have your $100 - but it will have drastically de-valued.
But if you had invested that money, your $100 could have turned into over $400!
Wouldn't you say that investing is the better way to go?
Compounding Interest The reason why investing increases the value of your money is "compound interest."
The beauty of compounding interest is that you're making money off of the money you deposit and you're making money off the interest the bank paid you. So, interest is calculated not only on the initial principal, but also on the accumulated interest that you are generating over time. This investing for college student and investing for teen advice will give you the ability to retire young and fully enjoy life.
What does this mean in dollars and cents? Investing for college students and investing for teens means the compound interest will grow bigger and faster than if you started investing when you reach twenty-five or thirty years old.
Now's the time to seize the day! Because sitting on your savings isn't going to help you in the long-run.
Becoming a young investor - be consistent Consistency is important, especially at a young age. The power of compounding interest is why consistency at an early age is so important. The earlier you begin following a regular investment plan, the more free money you will earn - earning interest off the interest you already earned.
The first step in being consistent when considering investing for college student and investing for teens is adopting a regular savings plan. Your savings plan is the backbone in your quest to retire young so make sure to invest on a regular basis. Next, you need to place that money in investment vehicles that will allow your money to double, triple, quadruple or better.
Take the long view The earlier you start the sooner you will retire young and able to live your dream lifestyle. Success will come faster than you think!
Steady, progressive, successful investments - mixed in with some not so successful investments - are part of the long road to creating your wealth that will allow you to retire young.
The more you're able to actively invest, the better opportunity you will have to run across what I call 'a whale'... a big investment success, which will change your life forever.
With the long road in mind, I advise you to create an overall financial plan - and the budget is the backbone of this plan. For example, is your career path sustainable? Have you chosen a job that will be around in the future, or could it disappear due to automation? Think ahead and think financially, especially if your job wage will be the main contribution to your investing budget.
A well-thought out and managed budget is essential when considering investing for college students and investing for teens, helps you figure out how much you must set aside for your long term investment goals so you can retire young. Then you can calculate how much you will have to invest in order to reach those goals. This enables you to retire young and plan ahead and be prepared for all the bumps and curves in the long road ahead of you.
Vince Shorb provides college and high school age student practical investing advice so they can retire young. Author of 'Financially Free by 30' - real world money course - www.FreeBy30.com.
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