I make $25k a year. Not a lot, I’m 21 and a full-time student too. I’ve got about $4k in my portfolio that I’ve been building for around 2.5 years, with $100 from every paycheck going into it. Are there any other ways I can grow my money?
That’s not too bad compared to some! But really, if you want more from investing, you’ll have to put in more. Either by upping your income (side jobs, moving up in work, etc.) or by saving more. It’s not fun, but those are the reliable ways without taking big risks.
@Shannon
Thanks for the real talk! 
Making more money is great, but you already know that — that’s why you’re in college! Honestly, the fact that you’re investing now is huge. Getting money in early makes a big difference. Even if you just put $50 every week for the next 45 years, you’re looking at over a million dollars by age 66.
I put it all in a calculator:
- Starting amount: $4000
- Years to grow: 45
- Return rate: 8%
- Monthly contributions: $216
End Balance: $1,165,727
Consistency is key. Keep it up, and try not to get caught in too much debt! Credit cards, long car loans, a big mortgage – they can all slow you down. You don’t need fancy stuff to be ahead in life!
Will you be making more after you graduate? If so, focus on your education! You’re earning enough to be saving for emergencies; bigger investments can wait until your income grows.
@Neve
Yep, it’s about building the habit of saving and investing. Starting young like this is great!
Dru said:
@Neve
Yep, it’s about building the habit of saving and investing. Starting young like this is great!
Honestly, I still don’t know what I’m doing!
@Neve
A few decades ago, I’d have said this was solid advice, but now a college degree doesn’t hold the same value. We have grads applying for our student worker role at $20/hr for 25 hrs/week — and these people have degrees.
@Landry
I work in tech. Salaries for recent grads are much higher there. It depends on the field you’re going into.
@Neve
It should double next year, and I’m planning to keep studying. Saving up while in school sounds smart. Thanks a lot!
@Shannon
One way to save on costs, if it applies, is learning to self-manage your portfolio. Paying 1% fees may not sound like much now, but as your savings grow, it really adds up!
Focus on your education and getting a bigger salary — in other words, invest in yourself. That should be your top priority. Even if you need to pause investing to focus on your studies and build your resume, it could pay off more in the long run.
@Zora
True! I am continuing my education, but I think you’re right about focusing more on my resume right now. Thanks!
- Live with family if possible; if not, get roommates.
- Focus on career choices with high earning potential.
- Cook meals, avoid extra debt.
- Open a high-yield savings account.
- Play the long game — invest what you can, but remember that income growth is the big key.
You’re ahead of the game. I wish I’d started at 21! Keep doing what you’re doing, and don’t stress too much about saving more at this salary. Focus on your studies, and the rest will follow.
Blair said:
You’re ahead of the game. I wish I’d started at 21! Keep doing what you’re doing, and don’t stress too much about saving more at this salary. Focus on your studies, and the rest will follow.
If I’d done monthly contributions at 21, I wouldn’t be playing catch-up now.
Blair said:
You’re ahead of the game. I wish I’d started at 21! Keep doing what you’re doing, and don’t stress too much about saving more at this salary. Focus on your studies, and the rest will follow.
Thanks, I appreciate it!
Patience is your best friend. You’re already doing great, and while $25k a year feels small, you’re in a better spot than many people. Head over to this forum’s finance topics, and you’ll see people in their 30s and 40s who are just starting to save.
Keep investing little by little, and you’ll get there.
@Tan
Are we seriously advising someone making $12.50/hour to invest? Maybe they should look for a job that pays more. Home Depot pays $38k/year.