If you’re reading this blog, you probably already understand the importance of investing your money. Investing is an effective way to get your money working for you. But even with the knowledge that investing is the key to building wealth and achieving financial independence often, many people fail to invest any money at all.
One of the most common excuses they give is that they simply don’t have any money to invest. But as we’re about to see, when you take a closer look you’ll see that their argument just doesn’t hold water.
First of all, you don’t need a lot of money to start investing. There are many online brokers such as Sharebuilder that allow you to open an account with no minimum balance at all. If you can come up with $50 a month you can invest it in whatever stocks strike your fancy. Or you can put your money into a mutual fund which buys stock in many different companies. Mutual funds generally require a larger initial investment but they will often waive that requirement if you agree to have funds directly deposited into your account each month.
Now let’s think about a few places you can find money to invest…
Cut Your Expenses
Take an honest look at your monthly spending and tell me you can’t drum up a measly $50 to put toward investing. Do you need to stop at Starbucks every single day or can you go every other day? Do you need all those premium movie channels that you never watch anyway? Can you brown bag your lunch a few times a month instead of eating out every day? Small sacrifices like these can add up to big savings over time.
Sell Your Clutter
We all have plenty of stuff that just sits around the house collecting dust. Take a few hours to clean out your attic, basement, or garage and you’ll likely find all sorts of things you can sell to raise some quick cash. If the weather is nice you could hold a yard sale, otherwise you can always list your items on eBay or Craigslist.
Find Ways to Earn More Money
If you’ve already cut your expenses and still don’t have any money left after paying your bills, it’s time to increase your income. You can do side hustles like mowing lawns, painting, or tutoring. Or you can get a part time job to help supplement your income. If you work just a few evenings a week you can easily earn $100 after taxes. At the end of the year you’ll have earned over five thousand dollars. If you invest that so it takes advantage of the power of compound interest you’ll slowly build yourself a sizable nest egg.