- Personal Finance
Ten tips to find money for investment - part 2
6. Put away some money everyday
Some people fail in investing because they don't have the discipline to stay on course. Some time it is hard to stay thinking about saving, that is why you need to make this a habit that you will take with you forever. Once you are used to saving this become second nature.
To start feeling like this, the best way is to put away some money every day. Doing this repeatedly will make you feel more in control of your financial destiny, even if you can save just a few dollars. Put this money on your investment account as soon as possible and you'll see it grow as you get used to save.
7. Buy less expensive products and save the difference
Shopping is an area in which there are great opportunities for saving. If you think of shopping in this way, you will start to see it as an opportunity of making money, instead of spending.
For example, you can play the following game. Check the price of the products that you buy every week, for example in a grocery store. Then, see how much you can save by shopping different stores or in the same store buy different brands. As you do this, make a note of how much you are saving in the total purchase. After you finish paying for the products, that the savings and put in your saving account. The last step is important, because if you don't invest the money you just saved, you will certainly find something else to buy. Using this little game can save you thousands of dollars per year.
8. Use you 401k effectively
One of the best ways to put money to work for yourself is to use you 401k plan. Most people don't use their retirement plans in the best way and therefore lose the benefits that are available for them. A 401k can be two important things: First, it can be used to grow your money tax free. That is, you don't need to pay anything for the gains you have in a 401k plan, as you have to in do in a normal account.
Second, a 401k is a nice too to reduce your amount of taxable income. That is, you will pay less taxes because your money have effectively being invested before it became your personal income. This will make you pay less taxes and provide more for the same amount of money.
Use your 401k effectively and it will become an important tool for wealth building.
9. Take your hobby to the next level
Certainly there are things that you love and that you spend a lot of time outside of your profession. If you have a hobby that is a passion, nothing more appropriate than turn the passion into profit. It doesn't need to become a full time work, but it can help you to make more money in something that you really enjoy.
For example, suppose that your hobby is cooking, and you love Italian dishes. You can use this hobby to create a web site for people that love the same. Or you can open a representation of Italian food brands. With you knowledge, these things are much easier to do, and they ca be very profitable.
10. Free yourself from and addiction and invest the savings
Another thing you can do to boost your savings is use it as an excuse to do something you always wanted to but had no success. For example, you may want to leave the smoking addition and found it to be difficult. You can use savings as a good excuse to stop smoking right now.
Use the following idea: write down how much you spend with smoking every day. Then, say to yourself that this money is now going to your savings account, instead of going to the addiction. Each day, take the money you would spend with cigarettes and put in your investment account. Don't forget to put the money in your account (or your investment jar) every day, or you will find something else to spend the money. You will see that it is not only useful to your investments, but is also a fun way to get free from your addiction.