“A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.” -Suze Orman
To make the right decision about how to invest your money you must know what your income is and how you are spending it. This is a great reason to have a budget and keep track of your expenses. Many people do not realize that they are overspending. Money is not flowing in quick enough to cover what is flowing out in expenses. If you can barely afford to meet your monthly expenses, you certainly do not have enough money available to invest. However, once you have a clear picture of how you spend your money you can take action and cut and reduce luxury spending.
A budget is similar to a map. It shows you where you have been, where you are, and where you could go. Only through taking an honest look at where you are financially in terms of income and expenses can you start working on your dreams. Perhaps you want to have your own home, start your own business, invest, or plan for your kids' future education.
Detailing which way your money is flowing and how fast is, a great place to start working on making your dreams come true. This allows you to have firm control over every single penny and make sure it is being spent in a way which is improving your financial situation and not creating debt. There are several investment opportunities which allow you to invest a small amount of capital over time.
Money market accounts, high yield bonds, and mutual funds are all great options for people who have little money to invest. Most financial advisors suggest that new investors start small and early.
Even if budgeting only helps you save $20 dollars a month, this can lead to thousands of dollars, over time and with the right investment plan. You can live without your afternoon paper, and that expensive lunch.
Think of how much money that little sacrifice could be making you. Most people consider budgeting restricting. But you should view a budget like a spending plan which frees up more money for investing, saving, and perhaps a little extra pocket money. Utilizing your income correctly can ensure that money is flowing into your pockets and not out.
The key to financial success is control. Controlling your income and your expenses allows you to make solid choices that are not motivated by fear but on well researched decisions. Decisions which will create financial stability and freedom for your family and yourself.
