1Mon·

Save yourself investing at a young age!

At least if you are still in training or studying and have to pay for most of your living costs (rent, food, hobbies, etc.) yourself.


In such situations, you may have 50-100 euros left over at the end of the month for possible investments. With an average return of 6%, you will have earned just under 2,000 euros (savings rate of 50 euros over 3 years) to just under 7,000 euros (savings rate of 100 euros over 5 years) at the start of your real professional life.


Sure, that's better than nothing. But with your first full-time job, you will usually be able to increase your monthly income by 1,000 euros net or more. So if you resist the lifestyle creep for just a few months and instead put the EUR 1,000 into your portfolio every month during this time, you will have made up for the EUR 50-100 per month that you have painfully saved over the years in no time at all.


You can use the 50-100 euros instead to treat yourself to something, work less on the side or simply buy good wine more often instead of cheap spirits.


Of course, there are also reasons to start investing small amounts as a trainee or student. For example, to get a feel for real money on the stock market. Ultimately, this is your individual decision. The important thing is to know: It's definitely not too late to start investing with your first full-time job. You can invest the money in yourself or other nonsense during your training/studies with a clear conscience.


And finally, a reminder: we are operating in an absolute bubble here. Many people don't have 50-100 euros left over at the end of the month during their training/studies and have to see how they can somehow make ends meet.


[Since my wording has caused confusion for at least two people: I'm only talking about investing in volatile assets like stocks, ETFs or crypto. It's not about saving for a vacation or building up reserves for a nest egg. Of course, trainees and students should also have or build up a nest egg of a suitable amount (see https://getqu.in/SIPivs/).

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109 Comments

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Student here, would give you a coin for the contribution, but can't afford one. That's why there's a 👍🏻
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Financially, this may not make much sense, but psychologically it does. Getting used to a "savings mentality" with little money is easier to continue when you enter full-time working life than only starting to save with your first "real" salary and then having the problem that you are already used to "consuming what's there". Having already become accustomed to a fixed savings rate when you start your career therefore makes more sense psychologically than it does economically.
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@Metis Good point. However, with a surplus of 50-100 euros a month, I wouldn't assume "I'm really going to go for it", but rather "doing without the money really hurts".
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@DonkeyInvestor Yes, that's what I mean by getting used to putting away X amount. Above all, it hurts less when your salary increases after graduation.
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@Metis am not a fan of deliberately inflicting pain on myself 😉. Saving doesn't have to and shouldn't hurt
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@DonkeyInvestor But are you really in pain if the reserves save your bottom in a financially tight situation anyway? 😉 I would have had to borrow more money to avoid that pain.
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@Metis mooooment. This is not about reserves aka nest egg. This is purely about investing, which of course only comes after building up a nest egg
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Starting is better than not starting.
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@Krynt What advantage do you see in starting as a student with 50 euros / month?
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I understand your approach. Nevertheless, I think it is important to start investing as early as possible. If you start with smaller amounts, you can learn from your initial mistakes without risking major financial losses. At least that's how it was for me. I started investing at the age of 18 and am happy to have built up solid expertise in the meantime. I'm also good at dealing with market fluctuations.
However, saving is just as important as investing. If you learn to regularly put aside small amounts, for example €50, as a student, you will develop a better understanding of budgeting. After graduating, many people tend to adjust their spending to their income and afford a lifestyle that is not actually sustainable. In many cases, the problem is not income, but overspending. If you learn to save early on, you can hopefully limit this risk!
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@maximumprofit Good points, I can understand them very well 👍
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I'm quite happy to have made mistakes during my training with €2,000 in capital instead of now with €45k.
But I'm right there with you, you should really only invest the money that's sitting loose at this stage.
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I see it differently. The extra 50 euros may not be an investment in retirement, but it's what you call a nest egg.
And it helps, especially if you only have 50 euros left over per month. Spend it and you're the idiot who suddenly can't pay his car insurance, etc.
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@Madhatter5566 Nope, you don't see it any differently. We're talking about investing here. You don't invest your nest egg at ~6% return, you put it in your current or call money account. Your nest egg is already there before you start investing.
@DonkeyInvestor Well. What kind of logic is that? That you already have a nest egg? After school? Yeah, right?
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@Madhatter5566 It doesn't matter whether you already have a nest egg or not. The article says: As a student, there is no need to painfully put away 50 euros a month and invest in shares. The article makes no statement about a nest egg. And that's not even the topic of the article 🤷
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@DonkeyInvestor Saving and investing are one and the same. Saving starts with a nest egg. And that is important
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@Madhatter5566 and nobody says anything against it
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Yes, but just starting is a huge step. I also notice this in my environment, many people talk about it but nobody starts with it🤲📈📉
I started with small amounts of crypto back then, fell into the craze and then set myself goals, which I achieved this year.
None of this would have been possible without a start and without goals.
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@Therapeut and it's easier to get started as a student/apprentice than with a full-time job?
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@DonkeyInvestor Yes, the sooner you get to grips with the matter, the better.
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@Therapeut But that wasn't an answer to my question 🤔🧐
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@DonkeyInvestor Yes, but you are starting your training at a younger age😂 so it makes sense to deal with it earlier
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@Therapeut and why is it better to start earlier?
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@DonkeyInvestor because I can gain more experience
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@Therapeut Congratulations. You have found and correctly reproduced my point from the article about why it can make sense to invest early 😅
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@DonkeyInvestor I already agreed with you in the first message🙄
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@Therapeut but I didn't want to read that 😁
If someone had given me the investment opportunities and information that exist today when I was young, I would have been .... long ago.

To all those who are younger... invested!!!
There are many reasons for this.
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Who has that much money (€50-100) left over at the end of the month as a student?
But it's true, now I can put aside €1000 every month without any restrictions, as a student I had less than that per month to live on. Looking back, it would have made absolutely no sense to save €50 by hook or by crook in order to invest it. That was better invested in cheap beer.
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@Psychedelic_Sunflower I've seen 15-year-old students here with a savings rate of 500 euros a month 😅. Bubble Alarm
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@DonkeyInvestor if you start working at 15 with a 520 euro job, have no additional costs because you live at home, logically don't have your own car yet and your parents earn your living (relatively normal at that age), you can easily achieve such a savings rate and at 18 you will already be at over 15k in pure investment (3 years savings rate of 500€ minus 3k because everyone can afford something during that time).
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@Thanos01 Yes, but what 15-year-old outside this bubble would come up with that idea 😅?
I worked part-time throughout my studies. There are plenty of jobs.
Depends on how much your student job pays. Here in Belgium I was able too save up 5 k by working and a extra 1,5 k by investing it (in a year) but I’m still in highschool so maybe things will be different next year.
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Thats why we pay ourselves in the beggining of the month😇. Inspiring post!
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But: man is a creature of habit-> ergo if I start packing away a part (no matter how small) early on, it becomes a habit. And then just increasing the amounts later on is easier than having to learn the whole thing later on
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@GoDividend why is it easier to get into the habit at 18 than at 23?
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@DonkeyInvestor The brain continues to develop into young adulthood. Some areas of the brain that are responsible for habit formation, such as the prefrontal cortex and the striatum, may be even more flexible and adaptable in 18-year-olds than in 23-year-olds. This could make it easier for 18-year-olds to form new habits and change old habits.
Life circumstances
Life circumstances can change considerably between the ages of 18 and 23. 18-year-olds are often in a period of transition, experiencing new things and taking on new responsibilities. This can be a time when they are more open to new habits. 23-year-olds may already have more established routines and habits, which could make it more difficult to integrate new ones.

🤣🤪
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@GoDividend you should rename yourself GoGPT. I won't go into the arguments for obvious reasons 😜
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@DonkeyInvestor It seemed plausible to me to quickly put together arguments in this way on these facts
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@DonkeyInvestor You shouldn't refuse new technology
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@GoDividend I could answer you in the same way. There would be no gain in knowledge for either side
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@DonkeyInvestor then the same in a different way.
You can't teach an old dog new tricks 🤣
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@GoDividend There are several arguments why it can make sense to start investing in the stock market at the age of 23 rather than 18:

1. **Maturity and experience**: At 23, most people have more life experience and a better understanding of financial matters compared to their 18-year-old selves. This added maturity can lead to more informed and considered investment decisions.

2 **Educational path and career stability**: Many young adults are still in education or training between the ages of 18 and 22. At 23, they are often closer to finishing their education and can have a stable income and better financial predictability, which makes investing easier.

3 **Lower risk of impulsive decisions**: Younger investors may tend to make more impulsive decisions based on short-term gains. With a few extra years of life experience and learning, chances are higher that you will be more patient and long-term thinking when investing.
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@DonkeyInvestor Summary -> the findings come too late for us anyway
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@GoDividend Perhaps you will gain some insights. I already know everything
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Important and right! Am I a little annoyed because I didn't invest in NVIDIA in 2015/16 during my bachelor's degree, even though I thought it was actually a good idea at the time? Maybe. Would the topic have distracted me too much from important things (studies, part-time job related to my studies, sports and leisure time) during my studies? Most probably. I can live with the fact that I didn't really invest until after my traineeship (no, not as a teacher). Maybe I should have been stingier with my first car when I started my career. But not during my studies.
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You can't say that across the board. I'm a dual student and earn 1.4k with additional income.
Rent apartment: 333€
Food: 350€
Leisure time: 100€
Gas: 150€
Miscellaneous (books, clothes,...):
100€
That would leave me with €367, which is a very extreme calculation. Normally I have more left over because I'm thrifty.
In addition, you have already saved something during your time at school and supplement this with monthly deposits.

Another aspect: you learn and you benefit later from what you've learned. When you've finished school, you're smarter and make fewer mistakes because you've already made a few and learned from them. It doesn't hurt to deal with this at an early stage.
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@VermoegenMitAktien That's why I didn't say it in general terms, but emphasized that you have to look at it individually 😉. If you can put away more than 50-100 euros without any restrictions, that is of course a significant difference.

Of course, you can also learn and practise without real money. But as I wrote in the article, it can be an advantage to experience this feeling with real money as well
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@VermoegenMitAktien I still had to work for €6/hour back then, not to be able to afford something cool, but to be able to pay for living expenses and basic clothing alongside my studies. The situation of dual students is not comparable in this respect. And BAföG doesn't help either if your parents don't pay or hardly pay anything. Entitlement or not ;) I still don't understand how you can assume so much that everyone should apparently have the same conditions. As a student, I was able to save so much that I had to borrow the deposit and my account went on my first vacuum cleaner and a simple set of furniture. Which doesn't matter, it's just a matter of not falling for any savings hype if you don't have anything to eat 😁 The fact that a financial check such as a budget book etc. is useful only applies to a limited extent.
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From 18 into the lutzie some don't even manage to invest at 60....
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@Koenigmidas As an heir to millions, I don't have to
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Income is the biggest lever for saving.
Instead of starting a part-time job alongside the 60-hour full-time week, in reality it pays more if you simply earn more money in your main job.

However, I see saving, not necessarily investing, as more of an educational measure at a younger age, as you can also learn to be a little more frugal for a bigger goal.
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This is exactly how I feel about paying into a pension in my first few jobs. I’ve saved 70% of my pension pot in the last 4 years now I’m in a role with good annual bonuses. Of course, my career might not have taken that trajectory and in 20 years I would have looked back and been grateful for the small amounts I set aside when I was 21. My point is, it’s easy to assume things will get better as you progress through life, but they might not.
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I wasn't saving a thing as a student. I was studying and working at the same time and I could barely cover my rent, my university fee and daily expenses.
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I have been investing since the start of my training. The first two years €250/month and from the third €300/month. Of course, I can only afford this because I live at home. I also invested in employee shares. I am now 5 months away from graduating with a good €14,500
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Let me describe my situation.

I was used to earning little money from my civilian service and training (~€400-600 per month from 2009-13, not living with my parents). Then I started studying, delivered pizzas and worked as a student trainee.

Then I started putting money aside because I had some left over. Advantage: I moved in with my grandma because she could no longer manage on her own. I paid €50 a month (DSL and a bit of electricity) and helped her with the garden, shopping, household chores, etc., despite a few holidays.
Despite a few vacations, I was able to put some good money aside. After my studies, I flew to New Zealand and spent two weeks visiting a friend in Poland. Then started the job in 2018 (salary ~45k with 13 salaries, 35h), at the same time moving out of the house (grandma was no longer there). After 9 months, I moved within the company to another federal state (60k, 40h).
After a year on the job, I started looking at my money for the first time. The whole time it was in call money, two building society savings accounts and fixed-term deposits. Unfortunately, I can no longer say how the money came together (i.e. what I saved during my training, what I saved during my studies and what I saved in my first job). However, I invested just under €50k in the first "investment year" and still had a fairly high cash ratio.

In hindsight, it was quite a wealth booster for me, especially because my salary hasn't risen much in relation to my qualifications.

If I had invested the money right from the start instead of saving it, I would probably have at least another net annual salary in my portfolio at this point.

I also think that you shouldn't restrict yourself too much during your studies. However, if you have the opportunity to make a quick buck on the side (I really enjoyed it and of course gained professional experience), it can make a significant contribution to building up your wealth. The 50k from the time until I completed my bachelor's degree would be an additional €367,000 by the time I retire in 2057 with a 5% inflation-adjusted return (cries in old man).
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I lived from 60-200€ Bafög at home during my training. I invested 10-30€ a month to get a feel for all the fun. Of course I bought a lot of crap and was too hasty, but I think that taught me a lot. And as they were only small amounts, they never really hurt. I also think that you don't necessarily have to do it, but it does give you a little feeling and understanding. Otherwise, you can of course open a demo account somewhere and learn with it if you don't want to spend money.
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In my normal job, I have 2 months' vacation every summer
So the 8 summers I was on vacation I worked 60h weeks, with a really good salary. Last summer it was 12k net and on top of that a normal salary from the other company.

As compensation, I drank absolutely everything away in my youth.
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I'm 22 years old investing more than 1k per month 🙃
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If the student had put the €50-100 per month between 2020 and 2023 into $NVDA, your calculation would be zero 😉🐽
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I think the sooner the better!
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Living frugally is a lifestyle 🌞
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Experience is worth more than digital numbers
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I still think it makes sense. You learn the feeling and also a few skills for investing, even if you don't necessarily make a lot of profit. You could also invest your "nest egg" in an S&P 500, for example, which usually increases your nest egg by €96 if you invest €100 per month. And THAT can then be invested in a good wine. Of course, you shouldn't necessarily invest in high-risk shares/ETFs/crypto, as you're not yet financially secure enough as a student.
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As a former trainee and current student, I disagree. I collected my first 50,000 during this time.
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