Feb 13, 2017 08:15 AM EST
If you think you can bulk up your savings as a college student, start with $5. Here are some ways you can do with your $5 to bulk up your future.
Start an IRA
Starting an IRA as a college student means giving yourself advantage inn the future as it gives you additional tax-free growth. Moreover, there is no minimum amount in opening an account. Setting up $5 for your IRA contribution every month is much better than splurging it on fast food.
Build your emergency fund
Building an emergency fund while on college prepares you much better for the uncertainties of the future. In case you have some very valuable thing that needs to get repaired, you can always use your emergency fund to do that. Or what if suddenly your family will experience some financial difficulties? Having an emergency fund keeps you at ease because there's something you can go to when unplanned things happen.
Set it aside for debt repayment
You can start setting aside $5 every month to add for the money that will help you repay credit card debts and student loans. The earlier you start the more you will bulk up your savings. It might nit look much at first but religiously putting aside $5 for that purpose will suddenly give you rewards that are very beneficial.
Start a 401K
For those who are not aware what a 401K is, it is for your retirement. You might be wondering why you should start saving up for retirement when you are still young. But by saving up early, you are capitalizing on the compounding interest of your savings.
Builds your self-discipline
Starting to set aside $5 for your savings is not difficult; thus, starting with little very early helps you develop the attitude of saving as well as the virtue of patience. It also teaches you how one small amount can greatly impact the future of your finances.
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