High Finance
| Category: Home Based Business - Finance | Date: 2003-06-19 |
What about those of us living from paycheck to paycheck? How can we beat inflation and save and invest?
Well, there are some low cost ways for a novice investor to preserve and increase his capital. There are ways for anyone with a little knowledge and courage to create wealth.
If you have trouble saving $5, let alone $500, here are some tips for you. There are two basic approaches to increasing your wealth. The first is to increase your income level and use this amount for investing. But with this method, you are depending on someone elses actions to achieve your goals.
The second approach is not to earn more, but rather to spend less. Systematically cutting your expenses will increase your savings. This approach may seem more difficult because you must exercise more self-control in your spending.
If you are a wise investor, you will save money no matter what your level of income. Even the millionaires would go bankrupt if they didnt know how to control their spending habits. So in summary, no matter how much you make, if you fail to save and manage your spending, you wont break away from the crowd.
Studies indicate that at every income level, there are always a certain number of individuals who are able to maintain a savings program. And of course, there is also always a group who constantly incur more debt. Whether you are a millionaire, average income earner or low-income family, you will find a great disparity of spending habits within your group. The borrowers usually outnumber the savers but there is always a small group who saves and invests no matter their income level.
Therefore, the amount of money you save can be completely unrelated to how much you make. What really matters is how you choose to spend what you make. Decide now to put your savings first. It must come before rent, taxes and food. It sounds harsh, but it works.
How much should you save? A good beginning goal is 10%. If you cant save 10%, then start with 5% and increase it by 1-2% each quarter.
By putting your savings first, it will probably put some pressure on your spending habits. This is a good thing! Youll have to begin looking for ways to cut back or youll end up in debt (or more debt) and we definitely dont want that.
A good way to make sure you put your savings first is to arrange to have it automatically deducted from your paycheck or bank account before you ever see it. This is called automatic withholding and is a key to my investing success. Check with your Investment Company or employer. Most of them have some sort of automated investing option available.
So no more excuses. You can be a wise investor, no matter your level of income.
About The Author
Doris Dobkins is a Money Saving Expert and the Author of "Financial Freedom A-Z Home Study Course". She also publishes the free weekly ezine $mart Money New$. You can subscribe to $mart Money New$ by sending an email to:
join-smart_money_news@nova.sparklist.com
or sign up at her web site, creativefinances.com
:To contact see details below.
dorisd@creativefinances.com
http://www.creativefinances.com
Well, there are some low cost ways for a novice investor to preserve and increase his capital. There are ways for anyone with a little knowledge and courage to create wealth.
If you have trouble saving $5, let alone $500, here are some tips for you. There are two basic approaches to increasing your wealth. The first is to increase your income level and use this amount for investing. But with this method, you are depending on someone elses actions to achieve your goals.
The second approach is not to earn more, but rather to spend less. Systematically cutting your expenses will increase your savings. This approach may seem more difficult because you must exercise more self-control in your spending.
If you are a wise investor, you will save money no matter what your level of income. Even the millionaires would go bankrupt if they didnt know how to control their spending habits. So in summary, no matter how much you make, if you fail to save and manage your spending, you wont break away from the crowd.
Studies indicate that at every income level, there are always a certain number of individuals who are able to maintain a savings program. And of course, there is also always a group who constantly incur more debt. Whether you are a millionaire, average income earner or low-income family, you will find a great disparity of spending habits within your group. The borrowers usually outnumber the savers but there is always a small group who saves and invests no matter their income level.
Therefore, the amount of money you save can be completely unrelated to how much you make. What really matters is how you choose to spend what you make. Decide now to put your savings first. It must come before rent, taxes and food. It sounds harsh, but it works.
How much should you save? A good beginning goal is 10%. If you cant save 10%, then start with 5% and increase it by 1-2% each quarter.
By putting your savings first, it will probably put some pressure on your spending habits. This is a good thing! Youll have to begin looking for ways to cut back or youll end up in debt (or more debt) and we definitely dont want that.
A good way to make sure you put your savings first is to arrange to have it automatically deducted from your paycheck or bank account before you ever see it. This is called automatic withholding and is a key to my investing success. Check with your Investment Company or employer. Most of them have some sort of automated investing option available.
So no more excuses. You can be a wise investor, no matter your level of income.
About The Author
Doris Dobkins is a Money Saving Expert and the Author of "Financial Freedom A-Z Home Study Course". She also publishes the free weekly ezine $mart Money New$. You can subscribe to $mart Money New$ by sending an email to:
join-smart_money_news@nova.sparklist.com
or sign up at her web site, creativefinances.com
:To contact see details below.
dorisd@creativefinances.com
http://www.creativefinances.com
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