Pros & Cons of Investing While at Uni

Pros & Cons of Investing While at Uni

Everyone studying at Uni is thinking up ways to make some extra cash. Or maybe even ways to pay off their student loans quickly once they graduate. Still others are already thinking ahead to buying their first home or maybe even a comfortable retirement. If you are financially savvy or maybe even studying financial subjects in school, you may be contemplating using your skills to start investing while you are at uni.  Before you make the decision to jump in, here are the pros and cons of investing while at uni

Pros of Investing While at Uni

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  • Starting Early
    • When you start investing early, you essentially have more time to start building your investment portfolio. The more time you have to build, the more time it has to grow and earn. You may even have enough of an investment by the time you graduate to pay off a sizable amount of your student loans. 
  • Real Estate
    • Investing in real estate is a perfect way to get started. If you buy the property that you stay in while at uni, you can rent out extra space to other college students to help pay the mortgage so that you are essentially living there for free. Once you graduate you can turn the property into an income property by renting it out, using the income to eventually purchase another income property. 
  • Tax Incentives
    • As a college student, you get tax breaks because you are usually low income. You can take advantage of this by putting the money you get back in taxes back into your investments. The money you earn from investments can be put into accounts that aren’t taxed that can be used later in life when needed. 

Cons of Investing While at Uni

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  • Impact on Studies
    • By spending so much time working on your investments, by studying various markets depending on what kind of investments you make, you are taking valuable time away from your studies. This could take a toll over time and could have an impact on your grades. 
  • Potential for Loss
    • Any time you invest money into any market, there is usually the potential for loss (with a few exceptions). It’s important to weigh this risk before you invest in any market. How high is the risk? Is it worth the possible gains? Do you really have the money to lose should the worst happen? 
  • May Not Know Enough About Investing
    • Because you are still at uni, you may not know enough about investing or the markets to be able to make sound decisions. If you aren’t aware of the economy, how it is impacted by various world events, and how every investment you make can be impacted by all of those things. 

Whether you choose to make any investments while you are studying at uni, you should be well informed before you do. If you do, you should do research into the markets and be prepared to make gains, but also prepare yourself if the worst should happen, just in case. 

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