1. Create a Budget
A first step to have more money for your initial investing in stocks is to know how much you are spending. This is a necessary way to achieve your goals.
Creating a budget is like defining a goal. You determine how much money your target is for each month, and then make yourself achieve that particular goal.
Using a budget will simplify your financial life. With this, you can determine how much money you need. You’ll also be able to know when additional money will be necessary, or when you can save more than the average.
For all these reasons, creating budget is like having a baseline. Starting from this basis, you can determine how much money will be available for your stock investments.
2. Reduce Your Expenses for Initial Investing in Stocks
After creating a budget, the next important step is to reduce your expenses.
By doing this, you’ll be achieving two goals: reducing how much money you need each month, and increasing the money you have for investments.
This dual characteristic of your savings makes it an important weapon in achieving your financial goals.
To reduce expenses, you have a large number of options
- Minimize trips to save gas
- Avoid eating out
- Do a diet
- Use less your credit card
- Avoid food waste
3. Consolidate Your Debt and Get Money to Invest in Stocks
Another strategy that you can use to have more money for your initial investing in stocks, is to consolidate your high interest debt into better loans.
The reason why this is useful is that banks change a lot of interest from your credit card debt. The interest changes from place to place, but are consistently higher than other kinds of debt, such as home loans.
This means that you’ll be losing thousands of dollars by having your debt spread around several high cost loans. The best option is to consolidate your debt and stop the high interest and fees as soon as possible.
4. Get Cheaper Gas
An interesting and attracting possibility is to get cheaper gas. This is especially true if you have long commutes, like most Americans.
Paying cheaper gas you’ll be able to save hundreds of dollars regularly, and this money can be all invested in great stocks that pay you dividends, or that are growing quickly.
To get cheaper gas, you have several options, but one of the most effective is to get a rewards credit card, as you’ll see in the next topic. But you can also get a membership at large discount stores (the best known of which is COSTCO).
5. Get Rewards on Your Credit Card
When it comes to saving money, probably the best opportunity available for consumer is to get a great rewards credit card.
With a rewards credit card, you can save thousands of dollars every year on normal purchases in supermarkets, drugstores, movie theaters, and so many other places.
The best reward cards are the ones that give cash back in all kinds of purchases. However, depending on how you use the credit card, you can have one for particular rewards: more commonly travel rewards in the form of airline points.
6. Save on Travel to Get Your Initial Investment
As mentioned above, a great way to save for your trade is to get travel credit cards. This way you can save hundreds of dollars each time you travel.
When it comes to travel rewards, there is a large number of options that you can pursue. Not only airlines rewards, which are very common, but also rewards for rental cars, hotels, and other kinds of transportation.
When getting travel rewards, you can get savings not only for you, but for your whole family. This all adds to a lot of savings.
Using these 6 powerful ways to save, you can get thousands of extra dollars to invest in great, solid stocks that can make you very rich.