Why As A Student Investing Makes You More Money

You may be wondering why as a student, investing would be a good thing to do. You have little cash coming in and a lot of expenses going out. Could you not wait until you’re older, employed and no longer a poor student? Investing is one of those things though that pays you back, if you’ll excuse the pun, disproportionately.

Thanks to the compounding effect you will get a much greater return by starting now instead of putting it off even 5 years for example. You see it’s not just the amount you save over that period it’s the fact that your investment will have grown along with the stock market. And by re-investing your dividend income you can see your investment account grow even faster.

Obviously the markets can go down as well as up but over the mid to long term it’s fairly reasonable to assume they will rise. Just for the sake of an example the FTSE, one of the Worlds leading stock exchanges, at the end of Jan. 03 stood at 3567.4. Five years later it was standing at 5879.8 and that at a time of economic instability around the globe. Now as I said a moment ago markets can go down but don’t see that as necessarily being a bad thing.