Going to your beach house for vacation in that dream vehicle while planning for a winter cruise is an idea that’s probably fairly far fetched right now. First, that sounds like a retirement dream, and you are a poor college student. Second, the world is dealing with a pandemic where travel is restricted, cruises are scary, and the economy is down. However, life will return to normal at some point and you can start taking steps to make, save and invest your money.
Make Some Money, First
To save and invest AND SPEND money, you first must MAKE IT! According to the Lumina Foundation, 40% of students work while attending school. But, with colleges and businesses closed, many students are without jobs or at least, a reduction in hours. So, students need to look elsewhere to make money.
A company that consults influential businesses across the world, McKinsey & Company stated, “service sectors…are likely to be the hardest hit.” But there are two, service-sector jobs that students could really take advantage of today. The first is an app that is downloadable onto your phone called Stringr. This application lets users accept requests for b-roll from many well-known news organizations. This b-roll can be shot with a cellphone and uploaded through their app. If the news organization likes your footage you get paid, typically within one business day, to your PayPal account. Footage around the Fox Valley area is around $40.00 a video. This is a great way to get outside, social distance and improve your b-roll skills.
And for those who want to work when they want and be their own boss, DoorDash and UberEATS are now hiring freelance drivers – lots of them. These companies are helping restaurants get their product to hungry customers in a safe way. And, with Governor Evers extending the stay-at-home order until May 26, people will most likely be utilizing these services even more.
According to Deposit Accounts by Lending Tree, only one-in-three college students have more than $1,000 saved. And according to BankRate three-in-ten adults have no emergency savings, either. So, with most of the entertainment sector shut down, now more than ever you should be saving money to change this trend. Warren Buffet’s quote should be committed to heart: “Do not save what is left after spending, instead spend what is left after saving.” Setting up automatic withdraws from your checking, creating a budget, and looking hard to find the highest yielding savings account can help.
One might think investing is something only rich people do, but that is not the case. An app like Robinhood lets you buy stocks or portions of stocks just like brokers would on the stock market floor. And an app called Acorns invests your spare change. These two apps are downloaded easily and will invest your money. But you might ask: Will COVID-19 cause me to lose money in the stock market? Over the years the stock market trended upward, even from its worst moments, it rebounds. However, it’s still quite hard to tell what will happen in the markets, but if you can, you’ll be rich beyond belief!
Another way to invest more money is to pay off those interest payments you could be putting towards investing. Many people are paying hundreds of dollars in interest on credit cards and student loans. One of the stimulus packages passed during COVID halted payments and interest on student loans for the next six months. Many people will choose not to pay anything, however, the smart thing to do is to start paying it off now if you can. Right now, your payments will go directly to paying off the principal, which will help you pay it off quicker, according to Forbes.
Returning to normal life is something most students want, but the stay-at-home order is out of your control. Making, saving, and investing money is not. YOU can start that today from home!
Written By: Matthew Knoke
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