Smart Thinking On Investing – June 9
Frugal Rules’ John Schmoll kicks off our Smart Thinking this week by teaching us different ways to invest our first one hundred dollars. Stefanie O’Connell, in her self-named blog, explains how to save for retirement if you’re self-employed. And Sarah Li Cain of High Fiving Dollars shares her tales of rescuing her bank account from rock bottom.
The Financial Panther explains how not saving money isn’t about our lack of willpower. And Millennial Boss Julie explains the rites of passage you should skip if you want to be rich in your thirties…
Start with a Little…
- There are a few robo-advisors out there with an opening minimum balance requirement of $100, it’s not crazy money but it will get you started on the stock market ladder
- One of the easiest ways to invest $100 is through your 401(k), and the best part is the paycheck match offers an instant return on whatever you can contribute
- Other options which will offer you a good return on your $100 can be making an extra payment on your credit card, investing in yourself, and starting a side hustle
Pay Your Future Self as Well as Your Present One
- Statistics show that 41% of millennials today are on the outside of a defined contribution plan or a traditional employer benefit plan
- Saving for retirement is just as important if you’re self-employed, but admittedly it’s difficult due to an unpredictable income
- While it may seem difficult, it’s crucial to incorporate your future retirement prospects into your current bill priorities
Rescuing Yourself and Your Bank Accounts
- It’s a difficult prospect pulling yourself and your bank account up from rock bottom, no matter how you have gotten there, but it’s important to stay positive
- You can start rescuing your bank account from the depths of despair by saying no; it will be hard at first, but it’ll help you and your finances become stronger
- Say no to spending money on items you don’t want or need, say no to low paying jobs and find one that pays what you are worth and say no to people who drain you and your bank balance
Have you rescued your bank account? Share your experiences in the section below
- Saving money doesn’t have to be about the amount of willpower or self-control you possess; simply let a computer do the whole thing for you
- It’s also about your portion size, if you end up with the whole of your salary in your account, you’ll find a way to spend it
- Set up an automated system that removes a portion of your paycheck immediately upon receiving it to everything from your Roth IRA to your savings account
Growing Up Rites of Passage
- By avoiding certain rites of passage to save money in your twenties, you’ll be much richer in your thirties; start with minimizing things like going out to expensive bars and spending money on taxis
- And those appealing designer labels? Your street cred and your bank balance will both forgive you if you forego them—honest
- And that tempting new car? Don’t be that person, it’s not necessary, and it will depreciate the moment you drive your new wheels off the forecourt, save yourself the money
Do you want to start investing on your own, but don’t know how?
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DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article. Andrew Stotz doesn’t necessarily endorse any stocks or shares mentioned in the articles or the author of such articles linked to and summarized in Smart Thinking On Investing and cannot guarantee the accuracy of its information.