Why As A Student Investing Makes You
More Money
You may be wondering why as a student,
investing would be a good thing to do. You have little cash coming in
and a lot of expenses going out. Could you not wait until you're
older, employed and no longer a poor student? Investing is one of
those things though that pays you back, if you'll excuse the pun,
disproportionately.
Thanks to the compounding effect you
will get a much greater return by starting now instead of putting it
off even 5 years for example. You see it's not just the amount you
save over that period it's the fact that your investment will have
grown along with the stock market. And by re-investing your dividend
income you can see your investment account grow even faster.
Obviously the markets can go down as
well as up but over the mid to long term it's fairly reasonable to
assume they will rise. Just for the sake of an example the FTSE, one
of the Worlds leading stock exchanges, at the end of Jan. 03 stood at
3567.4. Five years later it was standing at 5879.8 and that at a time
of economic instability around the globe. Now as I said a moment ago
markets can go down but don't see that as necessarily being a bad
thing.
Ok that might sound like crazy talk but
that's the reason you need to think like an investor. If you are in
the market for the medium to long term you will see fluctuations -
fact. But over time good quality stocks will always come good so if
you can buy them when the price is low you will benefit far more when
the market recovers.
If you decide to invest by making
regular payments into a savings account you will notice the effect of
compound interest even more. That's because you will be earning
interest on interest you have already accrued. By using compound
interest you can get your money to work hard for you rather than you
working hard for your money!
One of the other great benefits of
investing while you are in college is that it gets you into the
habit. After all if you have the discipline to save when your earning
powers are limited you will almost certainly be able to do it
throughout your life and reap the financial rewards. That really is a
great reason to begin as a student investing right now.
Vaurn James is the Owner of http://SuccessRoute.biz.
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