During my freshman year of college, I spent over $1000 per term on food, clothing, and weekend party materials 🙂 My Bank of America debit card was my worst enemy, for it gave me the power to spend, not invest. Except for my Fidelity Roth IRA, I completely neglected most of my investments because all my excess cash went towards my consumption-driven lifestyle. Things have changed now. I now rethink the way I spend money, which improves the way I invest.
So how do you go about saving more money for investing? Easy! You should spend less.
101 Ways to Save Money
Credit Cave has a great post on 101 ways to save money, which provides you with cost cutting practices on everything from credit cards to travel. Once I reconfigured my consumption habits, all of a sudden I had tons of money to invest! And I thought I would have to get another job.
101 Ways to Invest Money
Great! You found 101 ways to save money, which means you should have hundreds (maybe thousands) of dollars left over for investing. I wrote early about 101 ways to invest money in equities, collectibles, real estate, and alternative ideas. There are tons of lucrative investments all around us, yet it's really easy to become obsessed with stocks, mutual funds, etc. Investing takes many forms; explore as many investment ideas as possible.
Maintain Your Investment Strategy
Like a world class distance runner, you must maintain your stride throughout the whole contest. Saving and investing wisely for a couple months will not write your ticket towards financial independence. Wealth takes time to build. So start out small by cutting your expenses on a few discretionary items (Starbucks latte, that gym membership you never use), then continue the cycle. In a few months, you will eliminate a ton of unnecessary habits without noticing a difference in your attitude or mood. It won't be easy, but heck, what have you ever gained without working hard for it?
Tarik Pierce is the founder of InvestorTrip.com and regularly contributes articles to this website.
While living overseas, he uses PureVPN for a low cost VPN service.
He recommends Bluehost for setting up your own personal and/or business blog.
While his background is mostly related to trading stocks, he recently gained interest in real estate crowdfunding with Fundrise.