Many people think that buying stocks or having investments requires a lot of money. In reality, investing for the future can be done if on the budget of someone who is living paycheck to paycheck. The key is knowing where and how to accomplish the task
For most people, even saving a little money out of each paycheck is very difficult. Between the bills that have to be paid each month, and the special little surprises which arise, most people just aren’t able to save any money.
In addition, for those who are living paycheck to paycheck, it seems that only those individuals that already have money are the only people that can really afford the methods that are necessary to save. It is hard to invest in stocks when you need a minimum of $2,500 to even open a trading account. Even worse, let’s forget trying to open a long‑term annuity when you need $10,000 just to talk to a broker.
The reality, however, is that a lot of people save for the future without having a lot of initial capital to invest. The trick to building a savings for the future is twofold: having a plan that you can afford to stick with, and knowing the ways that you can save with only a few dollars.
By following the techniques outlined in this article, you can have a savings for the future. Just remember: savings is not built overnight. You will not get rich overnight, either.
Easy and Creative Ways to Invest for the Future
Savings Bonds
When most people think of savings bonds, they may think of something that was received for winning the school spelling bee, or a gift given by a grandmother to start that proverbial college fund.
In reality, savings bonds can actually be great ways to invest. Especially if you are a person who has trouble putting money away without finding reasons to spend it, savings bonds may be just the answer.
Savings bonds can be purchased in amounts as small as $25. And instead of having to go the bank to buy savings bonds, they can now be purchased online. When you purchase the bond, it accrues interest twice a year. The beauty comes in the fact that a savings bond cannot be cashed in for its accrued value until after 12 months from the original purchase date. This means that the money invested cannot be touched for at least a year.
Now, in reality, the interest that savings bonds accrue is not that high. However, when you consider that you can invest $50 a month, or $600 a year, draw interest on it, do this for the next several years, and not be able to easily touch it, you will find yourself with a pretty good amount of money later on.
A Savings Plan
Now, you can have all the knowledge in the world about investing, but if you don’t have a plan for actually saving money, then no amount of information is going to help.
The first step to actually making savings a normal part of your life is to treat it as a monthly expense. Just as you do with your car payment, mortgage, or even cable bill, plan your savings as a bill. And just as you should with an expense, make it an expense that you can afford.
Secondly, make your savings plan something you are proud of. While so many people might see this as common sense, it is not! Most people buy a car because they are proud of its appearance, or a home because of its location. Well, putting money aside in stocks, savings bonds, or even just a savings account should be viewed as creating assets—assets for the future.
For most people, even saving a little money out of each paycheck is very difficult. Between the bills that have to be paid each month, and the special little surprises which arise, most people just aren’t able to save any money.
In addition, for those who are living paycheck to paycheck, it seems that only those individuals that already have money are the only people that can really afford the methods that are necessary to save. It is hard to invest in stocks when you need a minimum of $2,500 to even open a trading account. Even worse, let’s forget trying to open a long‑term annuity when you need $10,000 just to talk to a broker.
The reality, however, is that a lot of people save for the future without having a lot of initial capital to invest. The trick to building a savings for the future is twofold: having a plan that you can afford to stick with, and knowing the ways that you can save with only a few dollars.
By following the techniques outlined in this article, you can have a savings for the future. Just remember: savings is not built overnight. You will not get rich overnight, either.
Easy and Creative Ways to Invest for the Future
Savings Bonds
When most people think of savings bonds, they may think of something that was received for winning the school spelling bee, or a gift given by a grandmother to start that proverbial college fund.
In reality, savings bonds can actually be great ways to invest. Especially if you are a person who has trouble putting money away without finding reasons to spend it, savings bonds may be just the answer.
Savings bonds can be purchased in amounts as small as $25. And instead of having to go the bank to buy savings bonds, they can now be purchased online. When you purchase the bond, it accrues interest twice a year. The beauty comes in the fact that a savings bond cannot be cashed in for its accrued value until after 12 months from the original purchase date. This means that the money invested cannot be touched for at least a year.
Now, in reality, the interest that savings bonds accrue is not that high. However, when you consider that you can invest $50 a month, or $600 a year, draw interest on it, do this for the next several years, and not be able to easily touch it, you will find yourself with a pretty good amount of money later on.
A Savings Plan
Now, you can have all the knowledge in the world about investing, but if you don’t have a plan for actually saving money, then no amount of information is going to help.
The first step to actually making savings a normal part of your life is to treat it as a monthly expense. Just as you do with your car payment, mortgage, or even cable bill, plan your savings as a bill. And just as you should with an expense, make it an expense that you can afford.
Secondly, make your savings plan something you are proud of. While so many people might see this as common sense, it is not! Most people buy a car because they are proud of its appearance, or a home because of its location. Well, putting money aside in stocks, savings bonds, or even just a savings account should be viewed as creating assets—assets for the future.
No comments:
Post a Comment