One of the main reasons people postpone their plans for investing in the false presupposition that they need a lot of money. The truth is we can start investing with as little as what we can find in our pockets right now. The key is to build and maintain good habits. One example could be putting away money each month towards a certain goal. If we were to start investing right now, we would be in a much better position later on. Experience and knowledge, we can never have too much of. And we only get more of it, the more we engage in such activities. And the relatively small amounts that we put away today, will not hurt us that much. But they could make a difference down the line, and we will thank ourselves later. There have never been more options for anyone to start investing. The information, methods, and knowledge are all at our fingertips. With a little bit of time and effort, anyone can dip their toe in the world of investing and financial growth. Here are some tips to get yourself started with a shoestring budget.
1. The cookie jar method
When it comes to investing, it does not necessarily mean just to save money. But for beginners, that often is the case. For us to invest money, we need a certain amount saved up. Now, the exact amount depends on the goal we have set for ourselves. It does not necessarily take a lot of time and it can be done in small steps if need be. If we are not known for our saving habits, we can start with single-digit percentages of our monthly income. It adds up in about a year or so. Then, when we deem acceptable, we can gradually increase the amounts we save at a regular time interval. A cookie jar can be anything from an envelope, a shoebox, a small safe or even a bank. To get us off the ground, little by little is the way to go.
2. Having a plan
This is one of the first and most overlooked steps when looking to get started. Writing a business plan and idea on a piece of paper can work wonders for us. A mission statement can serve as a reminder to ourselves of what we want to accomplish. It consists of a short and clear statement encompassing our core values. Some of the basics are who we are serving, that is what our targeted market is, how we do it, and what makes us unique. A business plan is when we map out our ideas, strategies, and goals. The way it should be done is to make it easy for us and everyone else easily comprehends the bigger picture. This is especially important to the unavoidable lenders. If they can see your business plan, they can come up with a feasibility study. In turn, this will provide potential lenders with all the information on the conditions of the loan.
3. Are our plans feasible?
Speaking of one, a feasibility study will provide us with a lot of additional information. Plenty of our own questions and ones from potential partners will be answered. Also, potential concerns regarding our idea and business will be mitigated. Such a study conducted in a marketing environment can determine the level of competition, find niches, and help identify the target audience. Technical studies will tackle the points of logistics. Some of those points are how do we produce, store, and deliver our products and services. A financial study will provide us with information on how much capital we need to get started. Alongside that, we will know the sources of that capital, returns on investment (ROI), and other financial elements. Basically, we will know how much cash we need, where it will come from, and how we will use it. If we have prior financial obligations, which often is the case, there are ways of dealing with those. Companies that provide favorable consolidation loans in Australia are plentiful and will help us make ends or tails of the situation.
4. Having a retirement plan
If we are on a tight budget, something as simple as involving ourselves in an employer enrolled retirement plan is a good idea. The amounts of money required for such a base investment are usually so small that they can go unnoticed. For example, if we invest a couple of percent of our monthly income, we will hardly notice it. On the other hand, it will add up over time down the line. As time passes and we get promotions and better-paying jobs, we can always increase the contributions. We can synchronize these increases with pay raises for an even smaller effect on our checkbook.
5. Investing in our own intellectual capital
We need to ask ourselves are there any skills that we could acquire that will bring us up in the world of investing? The short answer is: there always are. It is always possible and beneficial to learn new skills in the area we want to be proficient in. Never settle, never relax, or else we will get run over by the competition, or simply fall behind on our responsibilities. If we are not perfecting our craft, there is somebody else that is doing exactly that. Taking a course is not the cheapest thing we can do, but it is one of the best. Much like a retirement, making small monthly contributions towards bettering ourselves will add up a lot down the line.
There are plenty of ways to start investing. Even with a small starting capital. With the advent of the internet, the information is there for us to consume it. Online application-based platforms are making even this topic increasingly easier by the day. The secret is to get started as soon as possible with as much information as we can gather. Starting is the most difficult step but once we do, our life and the lives of our loved ones will get increasingly more fulfilled.