Generally, this involves investing in low-cost, well-diversified index funds and exchange-traded funds (ETFs). It also shouldn’t involve more risk or capital than you can afford. In college, a realistic investment strategy is one you can implement in your free time, between classes and studying.

All you need to get started is a few bucks a month. But don’t despair if your budget isn’t bursting with extra cash. You’ll also have to consider how your portfolio contributions fit in alongside expenses like rent, groceries and debt payments.Īt the end of the day, you shouldn’t invest what you don’t have. Generally, you should stock up your emergency fund with at least three to six months’ worth of expenses before you start investing. But if you want to retire in 40 years, you may be able to afford more risk now. Think about where you hope to be in a few decades – and then make decisions to get you there.įor instance, if you want to buy a house in 10 years, you’ll probably want to balance growing your wealth and hedging against a market downturn.

Once you’ve determined your why, it’s time to set some long-term goals. This “why” can be anything from retiring early to building long-term wealth to meeting life’s milestones. Having a reason to underpin your efforts makes it easier to stick with your plan long-term, especially during economic or personal financial instability. Before you dive in, consider why you want to invest.

Passive income for college students