Learn How To Invest & Live Frugally To Build That Nest Egg
When people think of investing, they sometimes dismiss the idea because they don’t feel as though they fit the mold at the time. Indeed in years past, if you didn’t have a significant amount of money, it was not always the best idea to put it into the stock market. This was for many reasons, but you could chiefly point to commission and that your money would be better off elsewhere until you had a nest egg. Discount brokerages changed the game over the past decade or so, and small investors have been waking up to the idea that investing is quite simple in today’s world.
Here’s some quick tips for living frugally. Silly but it works: http://money.usnews.com/money/personal-finance/articles/2012/09/11/15-ultra-frugal-money-saving-tips
Of course, investing still requires that you make sound financial decisions. You also have to be disciplined, and it’s always good to be frugal so that you keep your money in your investment account and continue adding funds. You don’t want to treat it as an emergency fund. Of course, for the small investor, that can be a difficult task because they might not have huge liquid savings they can get to at the time.
If you don’t have liquid savings, then it’s not a good idea to start investing. There is always the chance that you will have to liquidate your investments. It will take some time, and what if you need that cash for a real emergency, meaning you need the funds right away? Plus, it will thwart your investment attempt, which can be quite discouraging.
When you do have an emergency fund saved up, you can quickly get started investing and be frugal about it at the same time. There is an app out right now that saves your spare change for you and invests it in ETF funds. It pulls out five bucks at a time, and I’d say that is quite frugal for sure. As for the commission costs, you’ve got to pay a dollar a month, and that is all.
There are other investment brokers out there that are ideal for small investors who don’t want to pay 10 dollars for buying and selling stocks. You can invest in partial shares, or you can save up to where you’re throwing a nice chunk of change at your investments to where you only pay the commission one time. It’s up to you how you want to do it, but there are ways to get you started on the road to investing while still being frugal.
If you spend little bits of your money at a time, you will soon be building a nice big nest egg. Plus, it will make you think about other areas of your life in which you can be frugal. Some of the greatest investors out there know how important it is to be frugal, so it seems like a good lesson for everyone to learn. Things cost money, and sometimes telling yourself no a few times can be the difference between investing and failing to save any money at all for your future.