Do you want to invest in the stock market in 2020? If so you should be tucking some money away each month to begin to put into the market.
The easiest way to do this is to save money by cutting costs and expenses that aren’t necessary. Money saved today can be invested into stocks that eventually pay a big return down the line.
Financial responsibility is key. Now this isn’t to say you shouldn’t have fun. If you enjoy receiving the best horse racing tips and like to make a few bets, then so be it. You just have to know your limits and keep your finances a top priority.
Here are some tips to help you stash away some extra money that can be used to play the market.
1. Have a Daily and Monthly Budget
Before you can become financially savvy you need to know what your monthly (and daily) expenses are and which expenses can be eliminated or reduced.
Being financially sound requires clear thinking and everything you do plays a role. From resting up to remaining stress free — do what you have to do, from taking CBD melatonin to eating healthy — a clear mind helps you make solid decisions in all aspects of your life.
Create a spreadsheet for all of your expenses and start there.
2. Audit Your Monthly Subscription Services
Most people are paying for products and services they don’t even use. From gym memberships that are billing automatically to music streaming services that are never used.
If you take the time to comb through your credit card and bank statements from the past month you are likely to find some expenses you didn’t even think you had. By cancelling these you easily save money that can be put into the market rather than wasted on things you don’t use.
3. Keep a Change Jar at Your Desk
The amount of change we accumulate on a daily basis might shock you. The easiest way to take advantage of this is by placing a jar at your desk or on your kitchen counter, and making an effort to toss all of your spare change in it.
Then, when it is full take it to one of the change collection bins that most supermarkets have. Over time this can add up and even if you just collect an extra $40 a month it can contribute to buying a couple stocks.
4. Setup Automatic Transfers Monthly on Payday
The easiest way to save money is to have it setup to happen automatically. Whether you are a self employed commercial plumbing contractor and pay yourself, or if you’re a W2 employee that is paid on the first and fifteenth each month, set it up to move funds to your savings automatically, even if it’s just $50.
Every little bit adds up.
The more you can automatically transfer the better, because when you set it up like this you cannot make excuses. It just happens and you adjust for it, because you know it’s coming out every time.