I'm a college student and I know absolutely zip about banking, finances and investing. I'm especially bad with terms such as CD's and mutual funds...it all sounds so foreign. I have researched online but it dosen't seem to get through to me.
Is there a way to make it sound simple?
2006-08-14 18:29:23 · 13 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
A few suggestions for you...
1) If you have a credit card, never spend more on it than you can pay off IN FULL at the end of every month. Credit card interest rates are usury.
2) Live within your means. Here is an easy formula... don't spend more than you make.
3) Drive an economy car. They cost less to buy, insure, fill with gas, and repair.
4) If you don't really need something, don't buy it unless you have ample funds to purchase it with no strain on the budget. An example would be new clothes, vacations, alcohol, eating out a lot, etc.
5) Share as many expenses as possible, split rent and utilities with a roommate(s).
6) Save all you can in a savings account now. Don't worry about Cd's and mutual funds until you are out of school and have a steady career.
If you have specific questions, let me know and I would be happy to offer suggestions.
2006-08-14 18:42:11 · answer #1 · answered by Heatmizer 5 · 0⤊ 0⤋
It depends on how much money you have...If you can afford it, put a 1000 into a CD for a year and you'll make 3-8% return on that. That is the simplest way for college kids to invest. You could make a lot more money by investing in stocks, but there is a substantial risk of loss if you dont know what you are doing. Now is not a good time to buy, but real estate is the best investment for the long term.
2006-08-15 01:38:09 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Read Kiplinger's personal finance, Suze Orman and Rich Dad, Poor Dad.
These are great resources. Even if it doesn't all make sense to you at first, it will eventually sound less foreign.
Crash course:
Banks products like CD's, savings accounts and money market accounts are the safest investments. They are insured by the FDIC up to $100,000, so even if the bank goes under, your money is still safe. They don't offer the best interest rates, but they offer the least risk.
Mutual Funds are basically groups of different stocks and bonds. Investing in a mutual fund is less risky than investing in individual stocks because you aren't putting all your eggs in one basket. For example, one stock in the fund may lose money, but others may make enough to make up for it. But you can still lose money. It's not guaranteed like a bank product.
Individual Stocks- By all means, learn about them, but don't invest unless you feel comfortable.
Don't be intimidated by finance. Take control by learning everything you can.
2006-08-15 07:35:15 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It's ok if it sounds foreign to you now and there is really no rush to understand. Just as other things in life, you'll most likely grow into it as you enter the workplace, start getting some real money in the bank, etc... For now, just SAVE!
Of course I shouldn't assume you don't have money to invest simply because you are in college, so if you have money to invest and don't have a clue yet, I suggest you park your money in a safe place (go to a Citibank branch and ask for their 5% interest e-savings account) and use personal finance websites such as pfblog.com to educate yourself. Again, take your time, no rush...
Hope this helps.
2006-08-15 02:26:51 · answer #4 · answered by T 1 · 0⤊ 0⤋
Marry a rich man with a head for business. Being a good wife to a high quality man is the most effective way to get what you want and lead a happy life.
2006-08-15 01:47:28 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Be an entrepreneur, not a worker, so nobody can limit your earnings. Otherwise, it will be very hard to save your money. Then do invest in a money making property.
2006-08-15 02:15:59 · answer #6 · answered by sastra 3 · 0⤊ 0⤋
yes, you could learn to invest yourself, because it is your money. As soon you get the job after college. set aside 10-15% of your pay to 401k. spending less than you make. save consistently. control the urge for fansy stuff like clothes or cars. as long as you got the car going from point A to point B. friend of mine, he makes good money about 100k/year, but he drive a corrolla toyota, and he got the cash he need when he need it
in my situation
Yes you could learn invest by yourself. it is your money, you should know how to do with it. for starter check this site out.
http://www.pathtoinvesting.org/index_fla...
http://www.stockcharts.com
http://www.streettalklive.com>... university. a lot amount of information. It will serve you well
I accumulate in good amount in 401k at the young age.I could share with you. when consider invest in stock market. you should consider basic 3 things:
fundamental analysis==(economic data,finincial health, management, business model, competetion)>>what to buy
technical analysis==(chart+indicator)>> when to buy
Sentiment/schycho analysis==>>mood of investor, Contrarian point of view.
Market cycle===>> check out book Trader Almanac by jeff hirsch will give you inside stuff
When you combine 3 thing, It is one of the powerful knowledge goinh with you for the rest of your live
At the age of 32. my 401k is amassed 71,000.00 and 30000.00 in taxble account. by follow simple rule
2006-08-15 01:46:15 · answer #7 · answered by Hoa N 6 · 0⤊ 0⤋
if your really looking for a convinient answer you cant find it. the future of economy in this counrty is so messed up that we cant predict anything everything is off balance. college tuitions are rising everyday so are the interet rates...but it all depends on what financial goal you have...time can handle it.
2006-08-15 01:38:16 · answer #8 · answered by monkeyboy T 1 · 0⤊ 0⤋
always put back 10 to 20% percent of all you make in savings
2006-08-15 01:34:58 · answer #9 · answered by adrian_v69_2000 2 · 0⤊ 0⤋
Read some tips and articles on this site on how to do that
2006-08-15 01:41:05 · answer #10 · answered by Anonymous · 0⤊ 0⤋