Tips for Investing Money

Published on October 8th, 2015

When you live paycheck to paycheck, it can be difficult to save up or invest. However, considering rising costs and other factors, it is important to save what you can. There are some basic steps you can take to start saving here and there; you’d be surprised how it adds up!

  1. Make a budget. It may seem overwhelming to sit down and look at all your finances. However, it will be even more stressful if you avoid looking at a budget altogether. If budgeting is difficult for you, start off simple. Write down all your recurring expenses, estimates for non-recurring expenses, and other miscellaneous items you spend money on. If this is higher than what your paycheck is, then you should look at cutting down expenses. For example, if you buy coffee every day, start making your coffee at home and bringing it with you in a thermos. By knowing a relative budget, you’ll be able to get a better grasp on your finances, meaning you should be able to save more.
  2. Start saving now. Even if you cannot save much, saving what you can will add up. With interest, every year counts. Instead of going out to eat one night, set aside that money each week for a year and see how it adds up.
  3. When you do begin to invest, make sure your portfolio is diversified, so as to mitigate risk.
  4. Know what you need. The goal of budgeting is to figure out how much money you have left over after paying for essentials, such as shelter, food, and clothes. If you have a lot of excess money, you can spend on things you want after you buy the things you need. However, if you are constantly buying things rather than saving up, you will find yourself unable to cover expenses later on.

Budgeting and investing may seem scary and impossible, but if you start small, it should seem less daunting. When you are living paycheck to paycheck, starting to save will help you feel more comfortable in life. If you find yourself needing to cover unexpected expenses, Short Term Loans is here to help.


Back to News