This is our second guest post for today. I will be returning tomorrow with a post written by myself.
In an economic downturn, finding ways to save or invest money can be difficult, and isn’t usually a priority over car insurance, mortgage payments, and monthly utilities. However, it’s always important to consider ways to benefit your financial future. Most young people have every portion of there check dedicated to paying off one debt or another. Therefore, it can be challenging to put anything aside for savings, but you don’t need a lot of money to invest.
It’s a good idea is to keep track of your expenditures, especially if you live on a fixed income. You probably don’t realize how much you’re spending every month on small items that tend to add up. The obvious goal is to retain more money than you’re spending. That’s just basic economics. You need to know where you’re money is going and how to curb your spending. Save your receipts, and keep track of every penny you spend. At the end of the month tally the numbers, and you’ll be surprised at how much you’re wasting.
Now that you’ve tracked your spending, introduce yourself to the market. Although the stock market can seem complicated, it’s never too late to start understanding the system and investing. If you’re younger, you can take a little acceptable risk with penny stock picks, which are short-term investments. You don’t want to put the stability of your retirement in the hands of these types of investments, but you can receive a high rate of return with very little investment. Only invest what you’re willing to lose, since every investment possesses an element of risk.
You should also be aggressive with your retirement goals and start putting a little money away towards savings. If you have a job that offers a 401k program don’t wait until you’re in your forties to start. If you don’t have a job that offers this type of program, you should consider mutual funds or other types of low risk/long term investments.
Don’t wait too long to start thinking about how you can best invest your money, and remember, you don’t need a lot to make a lot in the long run.
I'm a 24 year old dude that studied finance in school and now wants to make it fun. Over the past three years I've been helping readers like YOU make more money and keep more cash in your pocket. I've appeared live on Fox Business News and I've been mentioned in the NY Times. You can also learn more about
{ 1 comment… read it below or add one }
One of the key considerations when considering debt should be the return on your investment (ROI) – both financial and non-financial. For example, investing in an Ivy League college degree and pursuing a relatively low paying career just doesn’t make sense – UNLESS – you’re really passionate about that career so the spiritual aspects outweigh the financial. Still, you might be better off considering a cheaper college and less debt as the marginal return on the Ivy degree relative to your state university might not be significant.