Investing always sounds like it is only meant for the rich. But you’ll be surprised this is rarely the case. The goog thing avout investing is that unlike buying a house, it doesn’t require a significant down payment. But most people know the old adage of paying yourself first is easier said than done.
Life is expensive and often we face unexpected spendings that always seem to show up at the wrong time. But there surely must be a way to start investing without hurting your finances, right? Don’t worry, we have you covered. Here are some thoughtful ways to put away extra cash without breaking the bank, which will provide you with the opportunity to start investing.
Clear Off Your Debts
This should be your number one priority before you start investing.
Start Setting Goals
Start by making a budget and setting your goals. Putting everything down on paper and visualizing it can help keep you on track and prioritize. Once you have your income and monthly obligations down, you can figure out how much you can reasonably afford to set aside each month. Even if you have as little as $25 each month initially, it’s better than nothing.
Invest with Robo Adviser
If you don’t have a lot of money, robo advisors can be your gateway to the investing world.
A robo-adviser is simply an online investment service which typically asks you about 10-15 simple questions and then allocates you to a suitable basket of investments. And manages these for you on an ongoing basis.
The big plus for less confident investors is that you don’t have to pick all the individual investments – they do it for you. Simples!
Robo advisers are automatic service that trades stock for you. It is a much cheaper than the traditional financial adviser, and it also have lower minimums to start investing with.
Look Into The Real Estate Market
Nowadays, investing in real estate does not requre you to have a fortune. A new term called “Real Estate Crowdfunding” makes it easier to own a fraction of a property without the headache of being a landlord.
Real estate crowdfunding platforms give investors a piece of development deals for as little as $1,000.
It’s important to keep in mind that investing in real estate is inherently risky, and crowdfunding is still a relatively new concept. So you should proceed with that in mind.
Have a Retirement Plan
A key goal of saving and investing, even at an early age, should be to help ensure that you have enough money after you stop working. One priority in your planning should be to take full advantage of the inducements dangled by governments and employers to encourage retirement security.