Tuesday, June 20, 2017
How To Afford Investments
It would be nice to have enough money to pay all of your bills, have some extra each month for emergencies, and even put some back for the future. A good way to plan for the future is to start some investments, but this can be hard when you are living paycheck to paycheck. It can also be difficult to know what types of investments to make, because you will want to make sure that not only will the money you put in not be lost, but that over time it grows. The whole point to finding a good investment is to make money, so you have enough to live on as you age or become unable to continue working. Doing this on a tight budget might sound impossible, but there are some things you can do to start an investment portfolio even if you are short on funds.
Here are a few tips on how to afford making investments:
• Pay off smaller accounts and then put those monthly payments towards your 401(k) at work, if one is offered. Any time you can put money into an account that is added to, even in a small portion, by someone else (like your employer); you should take advantage of this plan. This gives you the money you put in, and also the money your employer offers. Turning down participation in a profit sharing plan is the same as giving away free money. If you are lucky enough to work at a place where the employer puts money into an account for you, even if you do not contribute, do not turn down that opportunity!
• Look for a checking account that rounds up to the nearest dollar spent and transfers the change to a savings account. This might not seem like an investment, but over time your savings can grow to a substantial sum, and those funds can be used to make other investments or may even be accruing interest and growing within the savings account itself.
• Try to keep a balance in your checking account if your bank offers interest payments on that balance. A good option here is to bank at a credit union, which typically offers more benefits than traditional banking.
If you think you just do not have the money left over each month to do these things because your bills are too high, talk to us. We can give you ideas on how to reduce or eliminate some of your debts, either through bankruptcy or debt consolidation. We can also help you negotiate more favorable house payment terms, or get lower interest rates on your credit cards.
If you have more questions about money, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.