As a college student you would never think to start saving for your later years right now, all that’s on our mind is how we are going to make it to next weekend.
However, if you start investing for your future as early as you can and use compounding interest on your savings, your money will grow dramatically by the time you are a middle-aged adult, according to U.S News Finances.
The practice of saving may be foreign to some because we only have enough money to scrape by until next week’s meal swipes reset, but after considering doing things like that your whole life, it seems very practical to begin investing in your future as soon as you can.
It may be easy to think that you are almost losing or giving away your money if you choose to invest it early on in life, but choosing to invest can provide you with benefits right off the bat.
One benefit includes having the capability to be your own financial manager by being able to keep track of your own money and watching it grow in a savings account over the years and practically do nothing but sit there and reel in the interest payments.
Even the thought of being middle aged or retiring can be scary and seemingly far off, but before you know it you’ll be wishing you started saving earlier. On top of being your own financial manager you may find yourself being able to have a safety net for later on in life. It’s smart to have a safety net that can support you for at least 3 months, since that is the average time it takes for an adult to find a new job and “get back on their feet,” according to Mums Net Finances.
You don’t have to pour your entire savings account into one investment at once. In fact, you should diversify your savings if you choose to invest in the stock market. The stock market is a very tricky world to invest in, especially for young people so it should carefully be navigated and researched if you choose to invest your savings in any company.
A huge part of college is figuring out how to pay for it and like many people you may be completely on your own paying for it. Establish a compounding interest bank account that offers relatively high interest rates for students so that you can start putting little amounts of money away now so that it may grow to an amount that can help you pay off the looming threat of college debt.
Saving for your future now may seem like it’s not necessary at all but surely when you get older you’ll be glad you put a couple extra dollars a month into that savings account back in college.
