Generating income via full-time employment or business endeavors gives you the cash that you need to pay for day-to-day expenses. However, the only way to truly build wealth and achieve financial freedom is by investing that extra money that you have into various investment vehicles that pay you interest over time. The issue? Not everyone knows where to start, or they may not have a ton of money to start investing with. If this is the case for you, here are a few tips on how to save more money and build up an investment portfolio.
Make your financial education a priority.
Taking the time to learn more about personal finance is crucial to spending and saving your money wisely. Getting started is as simple as turning to a resource like WealthRocket.com. Wealth Rocket is a comprehensive personal finance resource geared towards helping everyone improve their financial literacy. Whether you need to learn how to create a budget to reach your financial goals, determine which credit card will be best to help you boost your credit score, or figure out which checking account or savings account you should open next, they’re designed to help you improve your finances by improving your financial education. With greater awareness of your personal finances and spending habits, you’re on the road to budgeting more successfully and saving money over time.
Look for ways to cut down on personal expenses.
While you shouldn’t get rid of everything that you enjoy having or using in order to save money, you can generally find things you’re able to cut out of your budget to improve your financial situation. Let’s imagine, for example, that you currently live near a college campus and attend school while also working nearby. At this point in time, you may not need your own car. Instead, you can save money by looking for used scooters for sale online. This will allow you to get around without having to invest in a new vehicle or in one as expensive as a used car can be. Additionally, there are plenty of great used models out there that will take you from point A to point B with ease.
Another great way to cut down expenses is to look for expenses you aren’t aware of. In today’s world where we have a subscription for almost everything, it can be easy to forget exactly what we’re paying for. You can use an app to find subscriptions and cancel unused ones to save yourself money in the long run. Even though an extra subscription for $6 a month doesn’t sound like much, that’s an extra $72 a year you could be spending on your future.
Start simple if you don’t know where to begin your investment journey.
Beginners to investing may not know exactly where to put their money. Even though you have a rainy day fund and a regular high-yield savings account, things like stocks, bonds, CDs, and ETFs can be confusing. Rather than dealing with analysis paralysis, consider using investment apps like Acorns to get started on your investment journey. Acorns allows you to choose from multiple portfolios based on risks to start saving and investing toward your financial future. With features like round-ups to invest spare change and retirement accounts for long-term investing, you can use this simple mobile app to begin investing until you know more about the individual financial products you want to put your money into to see long-term and short-term gains.
Investing can be hard, especially if you feel like you don’t have enough money to begin investing in your future. If you can relate to this, use the tips above to improve your financial literacy, save money, and begin your investment journey with a single step.