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|How To Start Investing After Graduating From The University by TheFinance101: 4:47pm On Mar 25|
After graduating from the university, there is a list of "next steps" you create which may include getting a job, creating a budget, or even stomping new grounds. However, there's one more thing you ought to add: Investing.
We understand. Retirement seems way far off and you think now is the time to just enjoy your earnings. However, as the old saying goes, little drops of water make a mighty ocean. The sooner you begin investing for a better future, the better it'd be for you.
In this article, we'd discuss a few points on how to start investing even if you're a fresh graduate.
Invest in yourself
After graduating from the university, you probably aren't earning so much money so the first thing you'd need to do is ramp up your income stream as quickly as possible. This can be achieved in numerous ways:
Improve your skill set -Take classes to learn new skills, earn certifications.
Get a good-paying job and work hard enough to get promotions and raises -Be known for doing excellent work until you become indispensable.
Get advanced degrees -Go the extra mile in boosting your perceived value which will, in turn, boost your earning capacity.
Start a business on the side -In essence, build a 5-9 asides from your 9-5 and grow it. It may be tough, but it'd pay off at the end if you tend it properly.
It is imperative to make money first before you can begin investing a meaningful amount. Do something to earn an extra income that you can invest.
[b]Minimize lifestyle inflation
[/b]You're probably wondering how you'll get the extra money to invest with. It is not as hard as you think. Minimizing lifestyle inflation is just as important as investing is. Track your expenses to know how you spend your money, then cut back on the excesses.
Many people spend more when they make more money. Avoid this trap and invest the extra money instead. It may either be by curbing the impulse to spend on perceived value rather than the actual value or turning down the offer to spend excessively on an outing with friends. Whatever it may be, cut down on expenses that don't add value to your life.
[/b]There are so many benefits to getting a jump on investing at a young age. Since time is on your side, your money will grow very quickly over time with the power of compound interest. Compounding is the eighth wonder of the world. Due to its power, a single penny can grow into millions over time.
Asides from the power of compound interest, starting early will help you develop the habit of investing. Saving for the long-term is a key part of wealth-building, so you'll want to get comfortable with it early enough. Make saving and investing mandatory and be consistent with it. Start your investment journey with Overwood(www.overwood.ng).
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