Examine Your Budget
Take a look at your budget and closely examine where the money is going. Ask yourself which spending is a necessity, and which spending is unnecessary. Closely evaluate if all the right amounts of money are going into the right areas.
Try to find room in the budget for an investment. Look for areas with extra money and move it to a more beneficial place in your budget. Make cuts in areas with unnecessary spending. Almost every budget has at least twenty dollars or more that can be better spent. Sometimes it’s as simple as eating at home more or resisting a candy bar craving.
Take the extra money in your budget and invest it into a savings account. Saving at its core is really another form of investing. For instance, you could use the money you saved for an income property investment. Open a new savings account with a high interest rate to begin saving money. The general recommendation for savings is about 10% per paycheck. However, if this doesn’t seem affordable, even $20 per paycheck can grow into something great. Be sure to make savings a priority, but don’t shoot higher than you can handle.
Pay Off Debt
If you have any debt, it’s important to work as hard as possible to pay it off. It’s difficult to make the most out of an investment until all debt is out of the picture, especially if the debt has high interest. The more debt paid off, the lower the principal value of the debt. This makes it possible to reduce the amount of money the debt costs not only overall, but every month. You’ll have more money in your pocket and faster debt pay-off for smarter investing. Remember to put a little money in your savings account every month while you’re paying the debt off.
Decide on an Investment
Once you’ve accrued some savings and paid off any debt, it’s time to decide how to invest the money. Real estate investment is a smart choice which has earned Jason Hartman quite a bit of success. There’s also the option of investing into the stock market or looking into penny stocks. Just remember to do your research and invest the money smartly. Investing isn’t a get rich quick solution, however, it can earn a substantial amount of money in the long run.
With these tips, you can accrue plenty of money to make a smart investment. Just be sure to research your options before making an investment, and make intelligent choices with your money along the way. (Top image: Flickr | opensourceway)
The Young Wealth Team