Finance 101: 4 Tips to Saving Money for Your Future Investments
Saturday, February 24, 2018, 6:00 PM | Leave Comment
If you want to invest, you will need to first raise capital to do so.
This is true whether you want to invest in stocks, real estate or anything else that you think will appreciate in value.
What are some ways to save money to make those future investments?
-
Have a Financial Plan
Creating a financial plan can help guide the decisions that you make to reach your savings goal. For instance, if you want to retire by age 35, you may want to put your money into growth stocks.
However, if you want to save for a house, it may be best to put a portion of each check into a savings account or pay down debt in an effort to increase your credit score.
-
Refinance Existing Debts
If you are paying 20 percent interest on a credit card balance, it may be worthwhile to seek out new loan terms. For instance, you could take out a personal loan at an interest rate of 8 to 10 percent depending on your credit score.
It may also be possible to transfer the balance to a new card with 0 percent interest for up to 21 months. Opting for an income-based repayment plan for your student loans could reduce your monthly payment or eliminate it entirely.
-
Shop around for Car Loans
While it may be possible for to use public transportation to get around, this may not be feasible for those with kids or who need to get to work on time.
Therefore, it may be necessary to get a vehicle and a loan to finance that purchase. Looking into lenders such as AutoStart may make it easy to get a loan without overpaying for the vehicle. This may make it possible to have money left over each month to invest.
-
Look for a Roommate
If you live alone, it may be a good idea to look for a roommate who can help pay the rent and utilities. This may make it possible to save hundreds or thousands of dollars each month that can be used to make investments. That may be enough to either purchase an asset outright or put a down payment to acquire it.
There are many ways in which you can save money to use for investment purposes. Ideally, you will start to invest as soon as possible to take advantage of as many years of compounding growth as you can get.
Throw us a like at Facebook.com/doable.financeAuthor BIO
Meghan Belnap is a freelance writer who enjoys spending time with her family. She also enjoys being in the outdoors and exploring new opportunities whenever they arise. Meghan also enjoys researching new topics that help to expand her horizons. You can often find her buried in a good book or out looking for an adventure. You can connect with her on Facebook and Twitter.
