by Sharon Jones
If you’re still quite young, you might think that you can’t afford any type of investment. Particularly, if you are on a limited income. With the cost of your car, your rent and perhaps little life luxuries, you probably think that you have no money left over to invest. However, this is a mistake, and experts suggest that everyone these days needs a secondary income. That means, short of taking on night shifts, you should be investing. You should be doing this as soon as possible as well, rather than leaving it to the last minute. Or rather, the last years of your life. At this point, you probably have one question. How? Well, we’re going to walk through exactly how you can afford to invest.
Set Up A Budget
This will always be your first step. You need to get in control of how much money is entering and leaving your account, keeping a tight focus on how much you are spending and why. Setting up a budget is easy. You just need to work out how much money you have for each month - this is your paycheck. After that, take away all the expenses that run like clockwork. We’re talking about the rent, the tax, even the food bills. On average, you should be able to work out how much you spend on food each week. Then, factor in how much you spend on luxuries each month. At the end of that, you’ll be left with an amount.
It’s probably larger than you expected and this is what you should have in savings. If you never have anywhere near this much at the end of each month and worse, end up in the red, it’s because you’re overspending. You can avoid this by limiting luxuries.
What Do You Do With That Money?
Little Investments are your next step. For instance, you might want to look at savings accounts. By doing this, you’ll be able to grow your money without even trying, and eventually, you’ll build up a nice little sum that you can use as a deposit for property. That’s right; we’re going to take you all the way to investing in a home before you’re thirty.
Find The Perfect Place
It doesn’t have to be a fixer-upper, it doesn’t have to be cheap. It should be perfect. Why buy a perfect home? You’re not going to live in it. Instead, as soon as you own it, you’re going to rent it out. You’re immediately going to turn it into a source of income and use it to your advantage. When you do this, you will be able to start paying back the mortgage, and within a few years, you’ll be completely free from the debt of the original investment. There are plenty of options for this type of investment too like Chinquapin. Beautiful locations where lots of people would love to spend a few weeks of their summer, regardless of the cost.
Once you have completed one investment, repeat the process. You could buy another home or invest in something completely different. Before long, you could call yourself a pro-investor, and that’s why it’s never too early to invest. It’s not just a side hustle. It’s a potentially life-changing decision that could completely alter your financial situation.