Being broke isn’t sexy. Every college graduate has a goal of making money straight out of college and when they do, it’s never too early to prepare for your future. Here are 5 ways to start investing after college.
1. PUT OFF ON GETTING YOUR FIRST PLACE
Living with family or friends saves money and allows you to make a saving’s plan without the burden of paying all of the bills. This is a great time to start saving for your investment plan. Use the early part of your career to determine how much you can afford to spend while also saving. Saving for your future, instead of getting your first apartment alone right out of college, could be better for your pockets.
2. LOOK FOR A CAREER, NOT JUST A JOB
As you leave college remember you are starting your career not just getting a job. Focus on getting a job that has room for growth. If you focus on building wealth with a career focused job in a field that offers a path for advancement and a competitive salary, then you will be able to build wealth through investing.
3. TAKE ADVANTAGE OF YOUR COMPANY’S 401K
If you do not know what a 401(k) plan is, it is money that is invested into your retirement, from your paycheck before you receive it. Many employers will match your contribution amount fully or in parts, which will increase your retirement payout. With most 401(k) plans, you don’t have to pay taxes on your contributions. The more you save in your 401(k), the higher your retirement check will be.
4. START SMALL
You don’t have to start by investing a large amount outside of your retirement plan options. For example, you can commit to investing as little as $50 a month into your investment account. If you start when you get your first full-time job, over time your $50 a month investment will contribute significantly to your financial goals. Calculate it for yourself.
5. INVEST FOR THE FUTURE
Money might be tight, but the habit of investing is worth it, and the value of time can be powerful. Your long-term returns can be significantly different if you start now rather than putting it off a few more years. The key is the power of time. By starting 10 years earlier, a smaller investment has more time to grow. Imagine how much a small investment can grow over the span of a 25–30-year career.
I hope that these steps have been helpful.