investment while in college
Photo: Shutterstock via Forbes.com

Top 5 Investment Options for Students

Are you a student wondering if there is a need to invest especially with not having “enough” money? The answer is yes, there is always a need to invest. Investment is the act of committing money or capital with the expectation of obtaining money or profit. Why do you need to invest?

Grow your money:- Investing your money can allow you to grow it, most investments offers returns on your money over the long term, this allows your money to build and helps you to create wealth over time.

Reach financial goals:- If the money you invested is earning a higher rate of return, you will earn more money over a faster period. This return can be used towards some major financial goals, like starting your own business.

Support yourself and others:- Investing gives you financial security. You are able to live well and also support people by investing in them too.

Be part of a venture:- Deciding to invest is great because most new businesses need investors. You become a part of something new or cutting-edge and you also make money from it.

You would be able to use your knowledge and experience to invest in more options that will yield profits

Investing avails you the opportunity to learn real-world experience that would profit you in the long run.

There are small investment ideas available that you can start with little money or on a student income. They include;

Lending club:- this is a great idea for investment as a student. Find a couple people that you trust, and then each person contributes a specific amount as decided upon by the group. At the end of the month, the total money contributed goes to a member, this continues until each member has their turn at collecting money and it goes around again. The advantage of this is that, you are assured of getting a small token that would help with your bills when it is your turn to receive money. It also helps to make you develop the saving habit which would be of great help to you when you get out of school. Remember to do this with people you trust and people that would be ready to do their part when it comes to contributing. The best part is, you can start with as little as a thousand Naira.

Start your own business:- if you have a little money saved and you are thinking of what to do with it, starting your own business might be a good idea. It may seem risky at first but it would be worth it in the end. The trick is to take advantage of the fact that it is a student environment, look for a pressing need and try to solve it. You could decide to start selling small groceries in your room in school, things like recharge cards, beverages, pure water etc. the advantage of this is that you don’t need a lot of money to start and you would get a lot of customers as people would be more inclined to buy from you because you are close-by than going far away to get the things they need. What’s more? With continuous buying and selling, you get to make good profit from it.

Learn a skill:- You can decide to use the money you have to learn a skill and trust me, you would not regret it. Be it baking, tailoring, web design, hair dressing, wig making, graphic design, bead making, etc. This is an investment you would not regret because the student environment is a great market available for you. You get to build a customer base and this would help you even after the university. When you graduate, you could even still use this as a side hustle as you cannot totally rely on your monthly income. This wouldn’t have too much effect on your studies as your customers would factor in your student status.

Partner up:- If you feel like starting a business is not for you, but you have the funds to do so, the best thing to do is invest in a business idea. Your course mate or friend may have an amazing idea for a business but may not have the funds to do it. Invest in the business idea and watch your money yield returns. Make sure the idea is feasible and do enough research before putting in money. When this works out, it would be an investment you would not regret.

Agricultural sector:- Like it or not, oil will not be the future of our Nigerian economy, the agricultural sector will be. It may not be your interest but it is a good avenue to invest and make money. Link up with a couple of your friends with like minds and invest into agriculture. It could be farming or fish farming. With little funds you could make a lot of profit and even have a steady business.

People are of the notion that in order to invest, you have to be rich in the first place or have a large income. This is not true as detailed above. There are risks to factor in when you want to consider investing: That is why you should do enough research before you decide where to channel your money into. As a student there are lots of options you could consider investing in. Remember, if you want to invest, the right time is now.