So many people like the thought of investing, but worry that they don't have enough money to start, that they can't afford it. As a matter of fact, once you really start to look into it, you may be surprised by just how much you actually have. That's why the first step to getting ahead in investing, is to monitor your finances!
I had a friend, let's call him Bob, who was a total mess. Had a dozen different bank accounts, savings accounts, investment accounts, and of course a whole selection of credit cards. And every month, he'd barely scrape through to pay day, despite making a fair amount of money. He thought he would never be able to get enough to invest, and maybe you're in a similar situation - overwhelmed by a huge number of spending accounts and credit cards.
So the first thing you need to do, is to start reducing the number of accounts you have - or at least, the number you use. I know I have at least one credit card I haven't touched in a year. If you can, try and bring it down so that you are only spending money from one account, preferably a bank account with a debit card. It doesn't matter what kind of account this is, really, just that all of your money goes through it.
At the end of the month, you can look at the statement for that account, and you will be able to see exactly what you are spending, and where. This will make it easy for you to spot unnecessary expenses, that you might not otherwise notice. Like that gym membership you signed up for six months ago, and then completely forgot about!
So organize your finances like this, and then take a good hard look at them. Is there anything that you pay for, that you don't really need? Could you maybe make it with one less bucket of ice cream, or one fewer magazine subscriptions? Every little helps, and if you can reduce your costs by even a small amount, it will be that much more that you can put towards your savings.
As you know, the whole point of investing is that the money you put in gets bigger over time. So even though it might not seem like you have a lot now, once you get started even that small amount will start to grow, and before you know it you'll be sitting on a fortune!
I had a friend, let's call him Bob, who was a total mess. Had a dozen different bank accounts, savings accounts, investment accounts, and of course a whole selection of credit cards. And every month, he'd barely scrape through to pay day, despite making a fair amount of money. He thought he would never be able to get enough to invest, and maybe you're in a similar situation - overwhelmed by a huge number of spending accounts and credit cards.
So the first thing you need to do, is to start reducing the number of accounts you have - or at least, the number you use. I know I have at least one credit card I haven't touched in a year. If you can, try and bring it down so that you are only spending money from one account, preferably a bank account with a debit card. It doesn't matter what kind of account this is, really, just that all of your money goes through it.
At the end of the month, you can look at the statement for that account, and you will be able to see exactly what you are spending, and where. This will make it easy for you to spot unnecessary expenses, that you might not otherwise notice. Like that gym membership you signed up for six months ago, and then completely forgot about!
So organize your finances like this, and then take a good hard look at them. Is there anything that you pay for, that you don't really need? Could you maybe make it with one less bucket of ice cream, or one fewer magazine subscriptions? Every little helps, and if you can reduce your costs by even a small amount, it will be that much more that you can put towards your savings.
As you know, the whole point of investing is that the money you put in gets bigger over time. So even though it might not seem like you have a lot now, once you get started even that small amount will start to grow, and before you know it you'll be sitting on a fortune!
About the Author:
Written by Stephen Hauptman, inventor of the new stock prediction site, the Stock Signaller. To learn more, or see it for yourself, Click Here.
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