Is Now a Good Time to Invest in the Stock Market if You’re in College? – Scholly

You don’t need to be an investing pro to see it. Recently, the stock market has been struggling hard. People have lost a lot of money as a result. And it doesn’t look like things are gonna change anytime soon.

Now, to the real investing pros, this is all normal. But, as someone in college who’s new to investing, you may be wondering…

Is now a good time to invest in the stock market? 

Well, if you only focus on how much money people are losing, the answer would probably be ‘No’. 

BUT… the truth is that right now is actually one of the best times for you to start investing. And, in this blog post, we’re going to show you why! Here’s what we’ll cover:

• Some common fears you may have about investing (and why they’re generally wrong)
• Why the best time to start investing was… yesterday
• An investing tool you can use to make your first investments ASAP 

Disclaimer: Now, it’s important you know the information we’ll share here is meant to be educational only. It should not be taken as financial advice. For that, you’ll need to speak to a professional financial advisor. Our blog posts may also contain affiliate links that, at no cost to you, may earn us a small commission.

Your fears are valid. If we didn’t know any better, we’d also procrastinate on investing for one of the following reasons. 

You think investing is only for the rich

If you’re worried about having enough money to invest, don’t be. Thanks to many investment apps, you can start investing with as little as $1 a month. So, no, you don’t have to be rich to invest. In fact, investing is one of the best ways for people of all income levels to build wealth over time.

You don’t know what to invest in

Bitcoin? Stocks? Bonds? There are a lot of options and advice out there, making it tough to know where to start. But the good news is you don’t have to pick just one thing. You can (and should) diversify your portfolio by investing in a mix of assets.

You’re worried about losing all your money

The stock market has indeed been pretty volatile lately, resulting in a lot of people losing the money they invested. But if you’re investing for the long-term (which is what you should be doing if you’re in college), the current volatility of the stock market shouldn’t concern you too much. Why? Because, in a somewhat predictable cycle, the market will eventually stabilize and be on the rise once again. 

Well… sort of. The truth is that there’s no perfect time. But here’s why right now is a pretty good time to start investing.

Declining markets mean cheaper stocks

Whenever the market tanks, it presents an opportunity to buy stocks on the cheap. That’s because when stock prices go down, you can buy more shares for your money. And as long as you’re investing for the long-term, you have time for the market to rebound and your investment to grow.

Time is your best investment strategy

The current conditions of the stock market won’t last forever.  The market will eventually rebound. And, when it does, you’ll see why now is better than later. Plus, the sooner you start investing, the more time your money has to grow. And the longer you wait to invest, the more you risk missing out on potential returns.

The current dip in the stock market is normal

It’s normal for the stock market to go up and down. In fact, it’s healthy for the market to have these dips. They provide opportunities for long-term investors, like you, to buy more shares at a lower price. And over time, these dips even out.

The market tends to reward risk takers

You may lose some money in the short term if you start investing today. But remember, the stock market is a long-term game. And, historically, it has rewarded those who are willing to take on some risk now for potential payouts later. 

There are so many options these days for you to start investing as a beginner. For example, you can open up an online brokerage account and start trading stocks. This is a good option if you’re knowledgeable about investing and want to have full control over your investment strategy.

Another option could be to use an automatic investment tool called a robo-advisor. What’s that? A robo-advisor is a digital tool that uses algorithms to automatically invest your money for you based on your goals.

This option is great if you’re starting with a small amount of money and don’t want to have to worry about picking individual stocks or following market trends. All you have to do is:

• Set up an account
• Answer some questions about your financial goals
• Decide how much and how often you want to invest
• Sit back and let the robo-advisor do its thing

Then, the robo-advisor uses its algorithms to automatically invest your money in a portfolio of stocks and bonds that aligns with your goals. 

For example, let’s say you want to take an aggressive, long-term investment strategy to potentially earn a lot of money on your investments. Well, the robo-advisor will automatically invest your money in a portfolio that is heavier on stocks (for growth) and lighter on bonds (for stability). It will also make sure your portfolio remains balanced as the market experiences the natural ups and downs over time. 

Generally, robo-advisors are a great way to get started with investing without having to put in a lot of time, effort, or money. Of course, you’ll have to pay to use a robo-advisor. But, we recommend checking out SoFi’s automated investing tool which lets you start investing with as little as $1 and zero management fees.

If you’re thinking about investing in the stock market, don’t let recent volatility scare you off! Right now is actually one of the best times for you to start investing.

Stock prices are relatively cheap and there are tools that can set you up to auto-invest so. By taking this approach, you won’t even need to follow the stock market closely if you don’t want to! Plus, if you wait until the stock market is “just right,” you might miss out on a lot of money in the long run. So, consider getting started ASAP! 

And if you want more beginner finance tips, check out the rest of our blog where we share tips on topics like how to build credit fast!