Friday, February 10, 2006

I can't save enough money for the minimum investment of a fund:

I know a lot of people read my previous post about investing in an Index Fund and when you saw that I said you could open one for as little as $1000 you said there is no way I'll ever be able to do that; I can barley save $100. Well fortunately for you, you only need to save half of that. T. Rowe Price has what is called a Systematic Investment Plan which means you only need an initial investment of $50 as long as you continue to invest $50 every month from here on out. I know that every college student can easily come up with $50 every month, so there are no need for excuses. I would recommend that you start with the Equity Index 500 Fund (ticker: PREIX) because this is their Index Fund and you should always start with an Index Fund.

Just think, if you invest $50 a month for a year, you not only have $600 instead of wasting it on beer and fast food, but will have earned enough in returns to buy a 12-pack or three. Clearly making your money work for you, rather than you working for your hangover is the way to go. Grab $50 bucks out of your checking account and sign up for one of these Systematic Investment Plans!

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