Getting a summer internship or any kind of internship for that matter isn't a piece of cake, but getting a paid internship is much more difficult! Spending internship money wisely, on the other hand, involves financial knowledge which every student should acquire.
It's an art form. It is not just essential for the present but can work wonders for the future as well. Of course, the power of compounding is a known phenomenon. Here are some ways through which you can use the internship money in a good way:
Invest in a new hobby or nurture an old one
Investments are frequently associated with materialistic expenditures like cars and houses, but we often forget that hobbies are personal investments, i.e., investing in oneself. The same way a car or a house improves your quality of life, your hobby helps your state of mind and well-being as well.
The ability to be impulsive is excellent, but when it comes to taking a passion to the next level, careful planning is essential. How about learning to play the guitar? A year has gone by, and due to lack of time, you've made little progress in mastering the skill. Planning could help in this situation.
Chart your predicted improvement for the entire year, as well as how much money you have to invest in whatever you need to better - this may be anything from travelling to a guitar class to paying the tuition price.
Put your money to work with liquid mutual funds
Do you realise that most banks offer you peanuts as interest on your savings - about 3.0 per cent to 4 per cent? Why keep your money in the bank when you can make additional money by investing in liquid mutual funds. It’s a low-risk investment that allows you to withdraw your money in less than an hour from your account.
Consider investing in mutual funds with a diverse portfolio if you have long-term objectives (at least one year). Investing in SIP is also a good option as one can begin with as little as Rs. 500!
Buy and Invest in stocks
It is possible to invest in stocks or bonds if you're just getting started in the stock market, but it is even more important to study and gain proper knowledge of the market. Anyone in India can open a demat account with a discount brokerage provider firm and begin investing in equity shares immediately after.
Start-Ups And Projects should be Funded
Ever wanted to start your own business in college, but gave up due to lack of skills, money, or time? It's not uncommon. It is important to understand that investors are not obligated to give you money, and even the most innovative ideas that seem wonderful to the ear might acquire finance and still fail. The money you receive from your stipend can be used to hire a few staff, purchase a domain name, construct a mobile app, website and more!
Discover a New Talent
By investing in a skill in high demand, you can get a leg up on your rivals in your field. You can pay a modest amount from your stipend money to acquire a certificate in Machine Learning on Coursera, take a Data Analytics course on edX, or take any other course that can enhance your competence in a certain industry skill. During interviews, some recruiters give MOOCs a high ranking.
Now that we’ve discussed some ways to invest or use your precious and hard-earned stipend money, it is advisable for all the students to start acquiring knowledge regarding the market and start investing in it. Learning a new skill or investing in a hobby can also work wonders for you. So, start thinking and begin investing.