Feel like you’re broke all the time? Here’s how you can change that

Most college students are better at spending money than saving it since they’re not used to having money.

But it is crucial that college students start saving money now. Emergencies and unexpected expenses don’t wait until you’re established in your adult life to happen. They can happen at any time. And, what’s more, the sooner you start saving and investing your money, the more you will have. And who doesn’t want more money?

Love it or hate it, you need to know about money and how to invest it. That dictates many of the choices you make, from where you live to what you’ll buy. Now, no one is saying you have to become an expert, but you have to know the basics, and it’s important to start while you’re still in college.

More from College Money 101:
An easy guide to help college students set up their first budget
How college students can start investing — and making — money
How I learned about investing in stocks — and you can, too

There’s a saying in the investing community: “The best time to invest was yesterday. The second best time is right now.”

What that means is that the earlier you are able to start, the earlier your money grows. This is done through the magic of compound interest! That means the money that you will be making when investing will grow exponentially based on the earnings made previously. It is what people mean when they say “make your money work for you.”

Here’s an example: Let’s say you invest $1,000 in a stock and it goes up 5%.That’s $50. Now your investment is worth $1,050. Let’s say you make 5% the next year. That’s now 5% of $1,060, which is $53. If you make 5% the next year, that’s now 5% of $1,113, which is $56. Your original $1,000 is now worth $1,170. Now, imagine that over 20, 30 or 40 years. It adds up. By not investing right now, you are basically letting that money slip away.

A lot of people already have an intuitive sense of what to do with money, but they may not know or utilize the tools that can help grow that money exponentially. 

It’s not enough to just…

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