In order to invest eclectically you must first have money to invest. So, start a savings account and ear mark it as money to use for investing.
In a previous post I mentioned that I will be reviewing savings tips. Here are my top 5 suggestions to fatten your savings account:
1) Buy pre-owned cars. Never buy a new car, unless you are mega rich. A new car loses 15% to 20% of its value just driving off the lot. You can avoid the hefty depreciation by buying a 2 to 3 year old vehicle and still have a warranty. On a $25,000 car this could be a $5,000 saving.
2) Travel offseason or plan way in advance. My wife and I have a CruiseOne franchise and we’ve learned a ton of travel tips to save money. The biggest travel saving tip is to travel offseason if you can. You can save around 50% of the normal price. A lot of the cruises we take are right after New Year when everyone has spent their holiday budge and we can get cruises at 50% to 60% off the premium times. Of course, if you don’t have the luxury of going off season, you should book your trip at least a year ahead.
3) Reduce your specialty coffee consumption to half. If you are an avid Starbucks (or other coffee shop) coffee drinker, you could easily cut your intake by half. Instead ordering a Venti Mocha Frappuchino every day. Stop it, and just go on weekends. This would save you an average of $5 per day or $100 per month.
4) Use a credit card that give you cash back. Once a year you claim your cash back and deposit it straight to you savings/investment account. By the way, don’t use your credit card for credit, always pay off your balance to avoid incurring interest charges.
5) Rationalize your utilities.
- Cellphones: look at your (or your family) cellphone usage, change to the best package for you usage. A lot of people I know, don’t use the cellphone plan that best suits their needs.
- Cable TV: get rid of you cable TV subscription. Trade it in for video over Internet service like Netflix, Hulu or Amazon Prime. You will get most of what you wanted to watch anyways at the time you want to watch. You should be able to cut your TV expense in half.
- Car fuel: make sure tires are inflated at the right pressure. It can save your up to 3.3% according to the US Dept. of Energy.
- Electricity: create that habit of turning lights off in rooms you are not in. Also, use LED lights which can cut consumption by 90% compared to regular light bulbs.
Hope these tips help you find extra money for your savings and investment funds. Have a profitable day!