How to Invest My Money: A Guide for College Student-Athletes

If you're a student-athlete and you've ever thought, "How should I invest my money?" trust me, you're not alone. Every time I speak to a college team, the Q&A session almost always turns into a conversation about investing. That's a good thing. Young people should be excited about investing. But before you dive in, let's break it down in a way that actually makes sense for your life, your goals, and your bank account right now.

Should I Start Investing Today?

1. What Is Investing and Why Should You Care?

Investing means putting your money into assets, like stocks, real estate, or businesses, with the goal of growing that money over time. The biggest reason to invest? Options. Investing gives you future freedom. The ability to work if you want, travel when you want, and live life on your terms. It also protects you from inflation, which is the way prices rise over time and your money loses value.

2. The Power of Compound Interest

Compound interest is when your money earns money...and then that money earns money. Over time, the results are wild. Example: If you invest $200/month from age 25 to 65 and earn 10% a year, you'll have over $1 million. But if you wait 20 years to start? You'll only have around $138,000. Time matters.

3. Save First, Then Invest

Here's the deal: You shouldn't be investing if you don't have any savings. An investment account can go up and down. Your emergency fund should not. Your first financial priority should be saving at least $5,000 (as a student) or 3-6 months of expenses (post-grad) in a high-yield savings account. After that, knock out high-interest debt (like credit cards). Then, and only then, start investing.

4. Where and How to Invest

You don't need to overthink this. Trusted platforms like Vanguard, Schwab, and Fidelity are good places to start. If you have earned income, consider opening a Roth IRA. You pay taxes on your money now, then it grows tax-free and you don't owe taxes when you pull it out later. That's a win.

If you don't have earned income, then a brokerage would be the place to start, but you will be taxed in a few different ways, so be careful and make sure to fully understand the account before putting money inside of it.

For beginners, index funds (like funds that track the S&P 500) are a smart, diversified option. Rather than betting on one company (like Target), you're investing in 500 of the biggest companies in America all at once. That's called diversification, and it lowers your risk.

5. Investing vs. Speculation

There's a difference between investing and speculating. Investing is about the long game. It's slow, steady, and backed by research. Speculation is gambling. Crypto, meme coins, day trading. Those might sound fun, but most people lose money chasing get-rich-quick schemes. Real wealth is built little by little.

6. Stay Consistent

Want to win with investing? Be consistent. The fancy term is "dollar-cost averaging," which means you invest the same amount every month, whether the market is up or down. It's like training for your sport: consistency beats hype every time.

7. Should You Start Investing Right Now?

Ask yourself these four questions:

If you answered "no" to any of those, it might not be time to invest just yet, and that's okay. Keep learning. Keep saving. The time will come.

Final Thoughts

As a student-athlete, your #1 investment right now is you, your education, your development, your future. But when you're ready to take the next step, start small, be consistent, and surround yourself with wise people. Don't follow hype. Make smart decisions that fit your life.

Team LRF is all about building long-term financial health. Whether you've got NIL money flowing in or you're scraping by with student loans, we want you to win with money. And when it comes to investing, winning means playing the long game.

Want more help figuring out if investing is right for you? Listen to this podcast to see if this is the right time to start investing. Think you're there? Get connected with a financial advisor, or reach out to us and we can connect you with one we trust.

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