When asking a person with a low income about investing, youll ptobably hear the same excuse. I'm just too broke to invest! This mentality that there often isn't enough money to put aside for investing has handicapped them into not even trying to set the money aside. they feel they need all the money now so thinking about 401k's and dividends might not even be on your priority list. Most people in Paychech to Paycheck lifestyles find financial freedom to be a sort of dream that they have to wake up from and go to work.
Regardless of what you think, the fact remains that not putting money away for later years will cause you alot of stress. This stress could be avoided if you make some choices now and stop hinderig yourself with that I can't mentality.
Lets Face It You Need Money
So lets address this problem of your broke mindset, now the advice isn't revolutionary but it works if you work for it! Something in your life has gotta give, it doesn't need to be a huge life shift. Just think about how you spend your money and consider cutting back on anything that you dont NEED. Cutting out things like buying coffee and fast food or bar visits for about a year is a good idea. This will allow you to save up some income for future investment.
You should be seeking to cut out at least $50 of expenses per month. that would mean in a year, you would have $600 to invest. Over 20 years that $600 could grow to over $22,000, if you saved at least $600 annually. $600 is better than that nothing you said you had, and there are many places to invest $600 that can make a big difference!
Let The DRIPS add upp
DRIPS are known as dividend reinvestment plans, they allow you to re-invest small amounts into dividend-paying stock. you can set up a traditional DRIP with a broker or you can use a service like Stash,which allows micro investing and dividend reinvestment. DRIPs add up to a sizable investments over time as the balance grows which then meand more dividends.
ETFs for the win!
Exchange traded funds are financial instruments used to track the performance of spcific sectors of the stock market. On Robinhood you can buy as little as a single share of an ETF. Ths will allow you to have exposure to multiple companies without having to put up as much capital. An added bonus is that most ETFs pay out dividends. This means they can help you grow your DRIP at a faster rate!
Don't go too far too fast
Take your time with this savings and investment thing, its not a race you literally have a lifetime. live life now but make the sacrifices needed for a brighter future. you could life a hard life for a few years while saving for a happy life, just dont let the cycles of hardship get you stuck in the trenches. Only you can shift the paradigms that hold you back and find success.
Posted from my blog with SteemPress : http://profitribes.com/dont-think-you-can-afford-to-invest-think-again/