Investing can provide you with valuable assets as well as a steady stream of income later in life if done right. That said, a lot of us usually wonder where we’re going to get the money to get started. We may start by looking at our already stretched budget and think that we’re about to start a losing battle. The truth is, with a bit of compromise and creativity, anyone can invest by looking into various aspects of our lives that we can trim and take advantage of.
It’s as Simple as a Garage Sale
Garage sales are an American culture. Almost everyone I know has stuff that they don’t use anymore that’s clogging up their house in one way or the other. This could be in the form of a stereo that you replaced for a newer model, your golf clubs from your golfing days, the bunch of CD’s that you’ve bought over the years but may never listen to and the decent-looking couch that you’ve been meaning to get rid of last year. Take inventory of all the items you’d like to sell and ballpark their prices, taking care to write down everything. Hold the garage sale on a Saturday, and don’t be afraid to hold it several Saturday until everything gets sold off.
Downsize Your Life
A lot of us take for granted the little things in life, especially when it comes to our daily expenditure. This could be in the form of those twice a week trips to Planet Yogurt or impulse shopping for that cute mug you saw on Etsy. All these expenditure, if added up on a yearly basis can amount to quite a bit of change. Try tracking your spending for about a week in order to identify spending patterns. Doing this will help you become mindful of where your money goes and force you to think of ways to get rid of non-essential goods and services, effectively freeing up cash for investing.
Look to Angel Investors
Sometimes, handouts are just as good as your own money, especially when it comes to investments that need a large amount of money upfront. Angel investors are individuals who make about $200,000 a year and have a net worth of more than $1 million who may be looking for people to help with regard to funding a startup or investment idea. These can be friends, family members or business contacts. You can up the ante and promise to pay them a certain percentage of their loan on top of repaying it. If you don’t know anyone who may be a great angel investor off the top of your head, consider advertising in your local paper, the mall’s bulletin board and other places such as online job sites.
Other ways of finding money to use in investing include signing up for offers to get cash-back rewards, selling your car for a cheaper but reliable model and using the change as investment capital or taking up a weekend job. Ultimately, all these tips, if used together, will help you scrape together enough money to help you get started on your investment journey.