Investing Money While in CollegeWe understand funds can be quite limited during your college years. However, beginning to invest small amounts early, can and will grow into substantial amounts later. Investing money while in college is one of the greatest favors you could ever do for yourself; not to mention the fact you are establishing excellent savings and investing habits early.
Let’s look at the power of investing $2,500 each year for only five years, beginning at age 25. Earning a tax deferred rate of 9% will cause the $12,500.00 to grow to $844,706.00 by age 65. You can see how small amounts can grow to huge sums over time. Look at what happens when the saver waits another five years; his savings are cut drastically! The same amount invested, starting at age 30, grows to $539,277.00 at 9% in a tax deferred account (over 35 years). As you can see, waiting until age 30 resulted in a 36% reduction in savings performance. Two hundred dollars a month for five years is a small sacrifice to make when you see how powerful the time element is in your savings plan. Save a little bit now, consistently, to ensure investing success early in life. It is entirely possible to retire well in advance of age 65, but it is impossible to retire early if you do not plan now and start your wealth building early in life.
A word of caution to our younger investors: Please avoid the credit card trap. Don’t mortgage your future to pay for today. It is so easy to get caught up in the flurry of living a lifestyle beyond your means. Understand when you do this, you extend the time you need to save in order to meet your savings goals. Enough said!
At Wealth2020, Inc. we show you how to invest for success at any age.
Investing For College and More Government Sponsored College Savings Programs Invest for the Long-Term and College Tuition Will Take Care of Itself The Best Way to Pay for Your Kid’s College Education |