I stopped just saving money. 3 things a college student gained by starting “installment investing”
I have previously shared tips on saving money and managing social expenses as a college student, but this time I want to talk about “money management (installment investing)” that I tried out.
“Is investing even worth it?”
“I definitely don’t want to lose money!”
Honestly, I felt the same way before I started.
But I thought, “Is it really a good idea to just let the money I worked hard to save from my part-time job sleep in a bank account? I want to make my money work for me, even if it’s just a small amount!”, so I decided to start “small-amount installment investing”.
In this post, I will talk about the “3 changes” I actually experienced as a college student who stopped just saving money and started small-amount installment investing!
1. Where and how did you start? (My investment style)
I was intimidated, thinking “the procedures to open a securities account must be difficult…”, but I opened mine with “Rakuten Securities”.
Since it can be completed online with just a smartphone and identity verification documents, the account opening process was surprisingly easy!
And currently, I am doing installment investing starting from “5,000 yen per month”.
I set an amount that I can comfortably afford from my part-time job earnings, and what I’m really glad about choosing Rakuten Securities is that “I earn Rakuten points”.
Since points are returned based on the installment amount and payment method, I feel the “two-fold benefit of increasing my money for the future while also earning points I can use now”!
2. The “3 things” I gained from actually doing it
After starting small-amount installments of 5,000 yen per month, I experienced major changes in my own mindset and behavior, beyond just whether my money increased or decreased.
1. I became interested in economic news and social movements
Even when I heard terms like “stock prices” or “weak yen” in the news, I used to think they had nothing to do with me. However, once I started investing my own money, even in small amounts, I naturally became curious about “how society is moving” and became more knowledgeable about how the world works.
2. I started to have a “brake” on wasteful spending
I developed the habit of thinking, “If I put this 500 yen snack I’m buying for no reason into my investments, what would happen in the future?”, and I was able to naturally curb unnecessary expenses.
3. I achieved a balance between “saving + investing”
I was able to divide roles, such as “saving money firmly in the bank for sudden expenses and living costs” and “investing a portion of the money I don’t need to use right away in small installments”!
3. If you’re a college student starting out, use ‘surplus funds’ and ‘an amount you can afford’!
If you read this article and thought, ‘Maybe I’ll give it a try too,’ there are some points I want you to be careful about.
That is never touch money you need for living expenses or unexpected costs.
The golden rule of installment investing is to only use ‘surplus funds’ (money you have left over) that won’t cause you any trouble if they temporarily decrease.
You can easily start with just a few thousand yen a month, so I think it’s best to try it with an amount you can afford, with the mindset of, ‘I skipped buying ice cream at the convenience store’ or ‘I decided not to buy a drink today,’ and investing that amount instead!
Conclusion
Some people might think, ‘Isn’t it too early for a college student to invest?’
But I believe that the ‘knowledge about money’ and ‘interest in the world’ I gained by stopping just saving and actually trying it out, even with just 5,000 yen a month, will definitely be useful in the future!
I hope this serves as a reference for those who are ‘interested in the new NISA or investing but can’t take that first step…’
I am still a beginner at investing, so I want to keep learning! I will continue to share my journey, so I would be happy if you could support me.
Thank you for reading until the end!