{"id":25471,"date":"2019-06-21T00:00:00","date_gmt":"2019-06-20T23:00:00","guid":{"rendered":"https:\/\/finmarie.com\/retirement-planning-and-investing-as-a-student\/"},"modified":"2022-10-04T10:34:36","modified_gmt":"2022-10-04T09:34:36","slug":"retirement-planning-and-investing-as-a-student","status":"publish","type":"post","link":"https:\/\/finmarie.com\/en\/retirement-planning-and-investing-as-a-student\/","title":{"rendered":"Retirement Planning And Investing As A Student"},"content":{"rendered":"

In your early 20ies, when you start your college or university career, there are topics far sexier to consider than retirement planning. Especially, if you have little money to invest in the first place. And yet, early investments are the best basis<\/strong> yet to gain financial independence in the long run. This is important, in particular, for young women. And this ist why it\u2019s worth the while to think about retirement planning and investing as a student<\/strong>. The advantage: once you\u2019ve set up your savings plan or your investment strategy, students don\u2019t have to make a lot of effort to grow their funds. Basically, your money multiplies passively \u2013 if, that is, you leave it alone.<\/p>\n

Is Investing As A Student Worthwhile?<\/h2>\n

The answer to this is a no-brainer, really. Investing as a student, is definitely worth the while<\/strong>!<\/p>\n

The earlier you start investing money, the higher and more profitable the compound interest effect, and, hence, the yields at the end of duration.<\/p>\n

Maybe you\u2019ve even been paid out a life insurance or received money from building society savings as a young adult? This would be a great ground to start from. You might consider how much of this money you could do without and invest it as a small capital contribution<\/strong>. Just stay aware so that your investment doesn\u2019t leave you without means to make ends meet during your studies. Rather invest a little less in the beginning<\/strong>. Usually it is never a problem to increase the amount later. And, if you become aware of the fact that you won\u2019t need your remaining money in the medium run, you might still effect a second small capital contribution, if you like.<\/p>\n

Little Money As A Student: Is Investing Even Possible?<\/h2>\n

Now, this one\u2019s a little bit trickier. Of course, investing as early as possible is always a good thing. But obviously only, if you can spare a little monthly rate. Kicker: There are investment products such as ETF accumulation plans that require as little as 25 Euros each month. Some micro investments can be effected with even less money, some as little as 10 Euros.<\/p>\n

What Students Should Be Aware Of When Investing<\/h2>\n
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  1. Make a list or a table with the amount of money you have available<\/strong> each month. Write down your fix expenses and leave a little room for fun spendings, too, so you won\u2019t have to completely renounce shopping or going out. This money serves in case of unforeseen expenses, too, like your utilities statement.<\/li>\n
  2. How much money do you have left after subtracting and planning your monthly expenses<\/strong>?<\/li>\n
  3. Don\u2019t ever invest all of the remaining money!<\/strong><\/li>\n
  4. Read up about various investment products<\/strong> that allow for smaller accumulation rates.<\/li>\n
  5. Choose rather medium-length durations of maybe 3 to 5 years<\/strong>, so that by the end of your university career you know, either how much money your investment generated or that your investment won\u2019t financially burden you<\/a> during your orientation phase and job search.<\/li>\n
  6. Absolutely consider the risks investments pose<\/strong>. Especially with small investments, high and unpredictable risks are not worthwhile.<\/li>\n
  7. Check fees and charges<\/strong> that come along with the investment you chose. Many banks ask a fee for opening or maintaining a deposit. If you decide for actively managed funds to be the right investment type for you, this means further charges for you. Sometimes these are applied against the monthly savings rate, sometimes they come on top, other times they only apply when in case of investment payout or share selling.<\/li>\n
  8. Get impartial and independent counseling<\/strong>. FinMarie provides you with real experts that offer you a free assessment on your ways, means, and possibilities of investing as a student:<\/li>\n<\/ol>\n

    [maxbutton id=\u201d1\u2033 ]<\/p>\n

    Savings Tip For Students: Make Your Tax Declaration<\/h2>\n

    Whether you make a little money on the side as a research assistant, whether you draw on a student loan, or whether your parents support you: as a student, you and your savings can benefit from a regular tax declaration.<\/p>\n

    The Most Important Tax Assets For Students<\/h3>\n