How To Invest on a Shoestring and Make a Buck

One of the biggest fears that most people have is that they do not have enough money to start making investments. Investments, however, are the best way to augment your income without having to take up an additional part time job. Here’s how you can get some investments rolling while keeping yourself within a shoestring budget.

  • Manage your income. First of all, you should look at your own cash flow. Look at your income, and then look at all of the things that you need to pay for. Make sure that you create a detailed report for yourself, which includes the income from all the people in the household and which you can use for investing, as well as all of the expenses. The expenses cover the rent, the mortgage, the car payments, the educational fees that you pay for your children, your clothes, your food, the bills and utilities, and your savings deposits. Once you have deducted all of these expenses, set aside at least ten percent for savings that you will eventually use for investments. At first, you may think that there is no way that you can fit your meager income to cover all these. This only means, however, that you will need to streamline your budget and cut costs whenever possible.
  • Savings plans. Next, consider savings plans that your company offers. The 401k is actually one of the easiest and best investments that you can make. The 401k are great for your retirement, and the terms and conditions for this type of investment is quite flexible. This allows both you and your company to profit from your investment. There are, of course, other types of retirement plans and savings plans out there. You simply need to take your time poring through each of them, and looking at which of them works best for your needs.
  • Savings account. Another very simple type of investment that you can make to add a few dollars to your budget is to use savings accounts. Savings accounts allow you to deposit your money in a bank and earn some basic interest from your savings. Naturally, the earnings are quite small. Eventually, however, you can move on to certificate of deposits. These certificates are long term investments that you cannot withdraw until the time has expired. The returns from CDs, however, are usually bigger than savings accounts.
  • Regularize your investments. Next, make sure that you make a schedule for your investments. Make investment a habit and a part of your financial life, the same way you work and expect to get some pay at the end of the month. When you regularize your investment, you will be able to even out all of the losses that you will eventually get, every now and then. The investment market, you should understand, is fickle and constantly changes. By investing regularly, you will be able to compensate your losses with your profits.

Finally, make sure that you find yourself a good broker who will help you in investing. The best brokers usually do not ask for fees and will serve you for free. With these steps, you should be able to invest even if you are working on a very small and tight budget.


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