After spending the summer of his senior year in high school landscaping and doing yard work, then 18 year-old Michael Klein saved his summer earnings. A summer of cash could have funded any number of freshman excursions, accessories, or luxuries, but Klein had something else in mind. \n"I decided to invest the money instead of spending it on stuff," said Klein, who hasn't become ridiculously wealthy ... yet. But for Klein it wasn't just about the riches, but about growing up and responsibility. With time, MSNBC financial reports began to make sense, and knowledge poured into his head. Now a senior studying finance he has realized a great truth: "It is never too early to start investing."\nFor many students the doors of the financial world seem inaccessible, the keys only given to an exclusive club of elites walking around in thousand dollar Armani suits, with briefcases to match.\nHowever, the financial world is becoming increasingly open to the average citizen. Experts suggest that even with limited resources, and with the right plan, everyone can get their own piece of the pie ... even students.
Reign in Spending and Save\nIf investing is so great, why don't people invest? \n"Spending is more fun," said IU \nfinance professor Bob Jennings, citing the constant availability of credit where people have the power to obtain whatever they want immediately, if they are willing to incur debt to obtain it. \n"We live in a consumer world where people are obsessed with keeping up with the Joneses," Jennings said.\nThis trend of extra spending remains true among college students. \n"Saving is essential, for most students saving money is the only way to accumulate wealth," said Financial Adviser Malcolm Webb of Taylor and Webb.\nThe old adage remains true -- "it takes money to make money," and the easiest way to procure financial resources is to cut down on unneeded expenses and save. \nFiscal responsibility often proves difficult in a college atmosphere where food can be scarce and gas is purchased by the half gallon. However, it is possible and necessary to save in order to secure a stable financial future. Cutting down on frivolous expenses is essential in order to optimize financial success.\n"Students should at least think twice about going down to Kirkwood and opening bar tabs on your Visa," Jennings said.
Don't be scared. Start Early.\nAt 11 years of age business mogul Warren Buffet purchased his first shares of stock. Years later he commands millions of dollars worth of resources at his discretion. Not everyone can be like Buffet, but that is no reason not to try, according to analysts.\n"Investing is never going to get easier," Jennings said. \nInvesting doesn't just mean putting your money in stocks and bonds, but also savings and checking accounts, said Jennings, who sees investing as simply putting money aside for an extended period of time.\nFear and debt mentally hold many students back from saving and investing according to analysts. Students worry how to pay for everything, but students with bills and loans should not be afraid.\nWebb suggests that the returns from some investing can be higher than interest rates of student loans during the same period of time.\n"Students often do not understand the power of compound interest," said Webb who suggests that someone who begins to invest at 18 compared to age 26 in a mutual fund at the same rate can double their returns. He said that saving doesn't have to break the investor's bank as it is possible to start a mutual fund for as little as $250.\nIf this is still too much for students to pay, some analysts suggest people should set aside a portion of every pay check to invest. \n"We encourage our clients to take 10 percent of their income, no matter how much they make, and invest it ... treating it like a utility bill," said David Estes, branch manager of Hilliard Lyons Financial Services in Bloomington. "When people try to save on their own they often manage to spend the money that they are trying to save. If you put it aside you can't spend it."\nPotential for a greater reward is not the only benefit to starting early. \n"By starting slowly you are going to gain valuable knowledge as you go," Estes said. "The earlier you can start the better."
Think long term and stay informed\nEasy riches is a grave misconception that many consumers have of the stock market.\nThe tales of the quick stock market millions of Donald Trump are actually the rare occurrence of a man with enormous resources.\n"Students often get into a Casino mindset when investing, expecting to double or triple their investment in a matter of months," Webb said. "To expect your money to double in a month is the wrong approach. People think of it as gambling, and it's not; its planning for the future." \nAnalysts suggest that \npatience, toughness and education are necessary in dealing with a market that has very literal ups and downs. The numbers and symbols can be intimidating, but they can be conquered.\n"The more informed the (investor) is the better," said Estes suggesting that the financial world is a land of enormous profit, with multiple news networks, magazines, and newspapers dedicated to informing those with vested interests. There is often money to gain, but there is also the potential for loss. Reading and research separates the good from the bad, the risky from the rewarding.\n"You could technically call online poker investing, but that doesn't mean that it is good," Jennings said.
