Money is an important topic that is not taught in school and mostly self-taught. I am a Junior in a full-time college, but I began to invest during the summer of my sophomore year. I began to save at the age of nine, and I accumulated more than two thousand Naira which was a lot. In elementary school, my parents gave me 350 Naira every day which I budget for the week. I would skip brunch, and walk two hours home just to save the money.
I love to save, but my money did not increase. I took a trip to Miami with a friend, and the trip changed my perspective on life and money. I set a goal that summer to research the different ways to invest my money. The article will explain how to be financially independent in college.
Ally Bank is online banking with checkings, savings, CD, and you can purchase stocks which I do not recommend. Ally Bank is great for beginners who want a low-risk investment. It is better than other savings account because it gives a 2.20% interest rate. Also, you can withdraw your money anytime without paying fees which I think is reasonable. You can start to save with as low as a hundred dollars. I make passive through it.
1. OPEN DIFFERENT SAVINGS ACCOUNT AND DIRECT DEPOSIT 10% OF YOUR PAYCHECK
After I set up the account, I direct deposit at least 10% of my paycheck weekly to each account. As a full-time college student, I do not earn a lot due to my involvement on campus, but I save the little money that I earn. For example, when I make $100 a week, I put $20 in my emergency account, $10 dedicated to traveling and Christmas gift. I prefer doing this because I receive an interest rate, and the money grows over time. It helps to organize my money while I live my life.
I began to invest in stocks in September and Robinhood made it easy. You can purchase a stock with one click, transfer money to Robinhood account, read the equity price, high price, dividend and etc. Robinhood has more than a hundred stocks including international stocks. Be aware that you can make money through stocks when participating in day trading, but it takes time to gain money depending on the performance of the company. You can start to invest with $6 which I did, but the company (Fitbit) is terrible. I will write an article on the steps to take before you purchase a stock.
Fundrise is a real estate company which gives investors with smaller capital to invest in real estate. A person can start with as little as $500. I love Fundrise because it is safer than stocks and it has a guaranteed income. Fundrise is better than saving account because of the higher interest rate. I made $6 in a month compared to $0.32 from savings. You can learn more by clicking HERE
ACTIVE INCOME- GET A JOB!
Another way that I make money is through an active income. Although I have enough money to support myself to a certain point, I use an active income to keep my money and investment flowing.
Get a Job For Certain Things In Your Life
As a full time 19 years old college student who lives on campus, I have three jobs.
1st Job- Resident Advisor
My first jobs help to decrease my student loan. The Residential Community Advisor pays for my room, board and my food. Through this, I do not take out student loans, pay for my existing student loans, and invest my money.
2nd Job- Customer Service At School
I use the paycheck for my travel expenses, emergency fund, and Christmas gifts.
3rd Job- Marketing Intern
I use the paycheck for my real estate and stock investment.
ACTIVE INCOME-BECOME A BLOGGER OR YOUTUBER
Another way that I generate active income is through my blog. Although I do not spend the money, I earn an income when visitors click on ads.
To conclude this, the best way to save at least $1000 each year is to make a budget and stick with it. Since it is difficult, you need self-efficiency and control. Make a budget for everything in your life and keep track of it. Learn how to make a budget HERE I will write an article about education financial books.