You’re at college because you care about your future. Because you care about your future, more than likely, you also want to start building up your wealth. One of the best ways for anyone, including college students, to start growing their money is to build up an investment portfolio. Here are a few ways you can start building wealth today:
Stocks
A common investment option that a lot of people will invest in because of it’s potential for great returns is stocks. If you’re hoping to invest in something that can make you a lot of money, stocks can make a huge difference in that bank account where you’ve been saving money from your nanny jobs you got when you passed nanny background checks.
However, this type of investment does involve a lot of risk as it’s dependent on a volatile market, so one may make a lot of money one day while losing some the next. If you aren’t yet at the level where you feel comfortable taking this kind of risk with your money, an investment option with lower risk may be better for you.
Mutual funds
For those who aren’t willing or able to invest a whole lot right now but who do want to get started investing, mutual funds are an interesting choice. It’s also ideal for people who have no idea how or where to start investing. Your money will go into a collection of money that will be invested in bonds and stocks. You want to do a little research to make sure you’re choosing an option that is known to be successful and that has low ratios.
REITs
A real estate investment trust is a good choice for college students who are looking for something that is lower-risk than some other choices on this list. REITs take care of the ownership and day-to-day of real estate so that you don’t have to sweat being a landlord. You can also typically invest in REITs with a bit less money.
A more lucrative choice to make when investing in REITs is to choose an option included in stock exchanges, where you can easily grow your money from your rental income.
Look into an IRA
There are a number of IRA investment options out there, so do extensive research to find options that work best for your situation and risk tolerance. The good thing about this type of investment is that it’s long-term. Something to consider is that if you do try to withdraw your money from this account before your senior year, you may be taxed a lot. It’s the type of investment that works for anyone who is thinking long-term.
There are various ways that you can get your IRA going. Whether you work with a bank or investment company, make sure you do your research to make sure you know whether you should open a Roth IRA or a traditional one.
Build up savings or emergency fund 
As you look into various investments, you may find that you’re not quite ready to make the leap into investing. You can still get things set up for your future by working on saving up money or setting up an emergency fund. Additionally, educating yourself on investments before you have the capital to do so is still a good idea.
The more prepared you are, the better your investing will be. Take time to research everything from investing in gold to real estate investing by purchasing property on your own. Creating a plan for future investments can go a long way toward helping you reach your financial goals.
In Conclusion
Just because you’re young and still in college doesn’t mean you can’t get started with your financial goals. If you have a mentor in your life who can help guide you, consider speaking to them about the best ways for you to reach financial goals. If you need further advice on what to do with your money, speak to a financial advisor.
