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What should I do if I don't have much money to invest?
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There's no question that finding money to invest can be tough, especially when it's hard to even make ends meet. And let's face it, budgeting isn't easy.
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But there is one simple thing you can do to make sure you invest more money: Pay yourself first. Have your company deposit part of your paycheck into a savings or money-market account. Use that money both to build up your emergency fund and to invest. It's easy to do, and once you've set it up, you don't have to think about it. In fact, after a paycheck or two, you probably won't even miss the money.
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Another painless way to increase your investment stash without breaking your budget is to invest any found money, like bonuses, gifts, and inheritances. While you might be tempted to use found money to splurge on new purchases, you'll be better off in the long run if you sock it away. After all, you were getting along without that cash, so don't feel like you need to spend it.
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Of course, there are other ways of squeezing a few more investment dollars from your check. Financial planners suggest you keep tabs on how you spend your money for a whole month, then add it up. Once you see where your cash is going, you can decide if spending money on certain items (like that $2 cup of coffee or that $20 CD) is really important to you, or if you'd rather invest a little bit of that cash each month.
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