You have read in a lot of places that you should start investing your savings as soon as possible . You have also seen several graphs (or simulations) on how your money will grow over time thanks to the investment. And finally you have realized that investing with head the risk of losing is very small, especially if your goals are long term.
You have it clear, you want to invest. And you want to do it now. Sooner. You only need one thing to start: money. If you wonder how to get the money you need to start investing, you are in the right place . However, if you have thought that after reading this article you will get money quickly, effortlessly and without getting off the couch, we are sorry to tell you that you are in the wrong place.
If you think that overnight, you can get 10, 20 or 30,000 euros with which to start investing, we are going to pour you a jug of cold water. That is impossible, or at least for ordinary mortals. The good news is that you can get that amount of money, even much more, if you try hard and put these four premises into practice.
Do not borrow more
When you get into debt, the same compound interest that enriches you when you invest becomes the enemy of your savings . With the investment you can earn a 4, 5 or 6% return, for example. With the debt you will lose that same 4, 5 or 6%, even more. They are the yin and the yan , both sides of the same coin.
Cancel the debts you already have
It is not responsible to start investing if you still have large debts to cancel. Do you think it would be smart to earn 5% on the stock exchange if you are paying 8% for the personal loan with which you bought the car? In addition, if you cancel your debts you will be calmer and you will be happier . Since you don’t owe money to anyone, you can focus on growing your assets.
Reduce your expenses and increase your income
Both things are easier than you think. To reduce expenses, just buy with a head, always comparing prices and only the products or services you really need. The whims and compulsive purchases we leave for others . You are thinking about your future.
Regarding the income, giving the coconut a little sure that you can think of formulas to earn some extra money every month. Of course, you will not get it if you do not get up from the sofa and start doing different things. No matter what they are, but start doing them. Here are 8 ways to get it.
Save and invest
If you have managed to do everything that we have proposed in the previous points, your ability to save money will have been multiplied by 2, by 3 and even by 10. You no longer owe money to anyone, you spend only the right and necessary and also earn more than before All that money that you have left over will be used for savings.
Each month you will pay yourself first and in a very short time you will have generated an emergency fund with which to face the usual unforeseen events of any person. When you think you already have enough money to meet those unexpected expenses, you can start your investment adventure.