Invest on a College
Budget
Date Added: June 1st,
2002
By Chris Stallman
| E-mail
Getting
through college can be pretty tough, especially when dealing with
a number of issues from studying, partying, and trying to manage
your money, or maybe the money your parents gave you. It would be
a good idea to save a little money now and invest for your future
while we are in one of the best economies this country has ever
seen?
Many students think it's impossible to invest when
you're young, simply due to a lack of cash flow. It's really
not as hard as you think. Simply take a portion of your paycheck
or extra money that you can afford to put aside each week and start
saving NOW! Many people throw ALL of their money into a checking
account that is earning very little or no interest. Wouldn't
you rather put that money in a money market account or a quality
mutual fund and watch it grow? Some mutual funds only require a
$500 initial purchase and subsequent investments of as little as
$50 per additional investment. In the long run, it's well worth
it. Take advantage in the power of compounding!
My dad
got me started investing when I was very young, but I really didn't
pay much attention until I first enrolled in college. I wish I would
of started earlier, because I would of made a killing on these technology
stocks. Doesn't everyone say this? When I went to the University
of Central Florida, I would hang out in the computer lab between
classes checking my favorite stocks and doing research from a variety
of Internet sources, such as Yahoo! Finance and CBS MarketWatch.com.
I would receive a lot of questions from fellow students about the
basics of investing and how to get started in the stock market.
That sparked the idea of starting CollegeInvestors.com.
At first, I used the site to teach the basics of investing, but
have recently expanded the site into offering career advice, resume
postings, commentary and other fun college stuff for students to
enjoy. I also designed the following list below to help students
save money for their financial future.
1.) Open up an Online
Brokerage Account - For as
little as $8 per trade you can invest online and make your own investment
decisions. Many online brokers such as Ameritrade (www.ameritrade.com)
and Suretrade (www.suretrade.com) require only around $500 to get
started. Some even have no minimum to open an account and get started.
Be sure to take an online tour, so you make sure you're clicking
the right buttons and understanding the market terminology. Most
online brokerages even offer great company research to help you
along the way to make wiser investment choices.
2.) Get Free Internet Access
- Why pay for AOL when
most colleges provide free
Internet access on campus as well as a free dial-up account? If
you want to keep in touch with your buddies that have AOL, download
the AOL Instant Messenger for FREE by logging onto www.aol.com.
You can easily chose your own screen name and begin chatting away.
There are also a number of free Internet service providers such
as NetZero, as long as you can stand the banner advertising.
3.) Invest in Microwave Dinners
- Why spend lots of cash
for meals at sit down restaurants when you can save money by enjoying
a delicious $1.50 microwave dinner. Well, maybe not "delicious",
but you'll have more money in your pocket to save and invest!
Enjoy a cheap meal between classes and study sessions. You can even
make a smoothie or protein shake
4.) Remember the Three R's:
Ride a Bike, Rollerblade, or Run - Gas
is getting very expensive these days and will probably never get
any cheaper. Face it, the days of filling up your car for ten bucks
are over. Not only will you save money on gas and prevent wear and
tear on your car, you get a hell of a workout and lose some of that
Freshman Fifteen. Find a motivated buddy to go with and make the
journey more enjoyable. A little motivation from a friend never
hurt!
5.) Sell Those Used Books,
Quick - Make sure you sell
your books as soon as your class is finished. I don't mean your
first class, I mean when the semester is over, if not a little before.
Those professors love to go to new editions, even if your book is
the latest version. I've seen this happen too many times. Don't
want to wait in those long lines? There are many good online college
bookstores including eFollett.com and VaristyBooks.com. So unload,
quick!
6.) Get a Job! - Stop
wasting time in those chat rooms and porn sites.
I know school is tough, with
all the studying and partying. OK, well maybe not studying. Just
kidding! Find something part time, maybe on campus. Just try to
squeeze in a few hours a week. Many campuses need help in their
fitness and medical facilities. Many teachers have grant money and
a budget that many people don't know about, so how about learning
how to create a website and build your teacher a place in cyberspace?
They may remember it around grade time also!
7.) Sell Your Baseball Cards
- I know it's hard to
part with your Ken Griffey Jr. rookie card, but why not put it on
EBAY and try to make some quick cash? A lot of us probably have
closets full of valuable baseball cards and other dust-collecting
collectibles from our childhood. It's getting about that time
to grow up, cash in, and venture in the real world. By the way,
I could not live with myself if I sold my future Hall of Famer,
Ken Griffey Jr. Rookie card, but it's your call.
8.) Burn Your Own CD's
- Every college kid needs
music, so why not get it for free rather than spending $12-$20 every
time your favorite artist comes out with a new song. Invest in a
good CD burner and download any song from any artist on the website,
MP3.com. We should all thanks this 19 year-old entrepreneur for
creating this program and allowing us to be more musically diverse.
He has definitely helped out my personal music collection. This
is also a great gift idea for people on your Christmas and Birthday
list who love music.
9.) Don't Call Your Parents
Long Distance - Why waste
your money on long distance calls, while you can take advantage
of the power of the Internet? There are many free online phone services
including DialPad.com, which allows you to dial anywhere in the
U.S. for free just by logging onto their site. Another great service
I came across and added to CollegeInvestors.com is a voice enabled
chat from HearMe.com. My roommate even talks to his parents in Saudi
Arabia, which normally costs him around $150 a month. And remember,
there is always 1-800-COLLECT!
10.) Drink Less Beer…Or Drink
Someone Else's* - At
about $3.00 a pop at a local night club, I'd say the average
partier drinks about 5 beers a night, which adds up to $15, plus
a tip if you're not cheap. Let's say, $30 a week x 52 weeks,
supposing you go out twice a week for a year. That adds up to $1,560.
If you had invested that in Dell Computers in 1990 you'd be
worth approximately $920,000 today. Drink beer or get rich? Life
is full of important decisions.
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