The idea is to invest in what lets your money earn more money. It’s a way in which you can earn passive income. It’s kind of like having a bunch of employees working for you.
The problem, though, is that in a tight economy it can be hard to come up with money to invest. If that’s the situation you’ve found yourself in here are seven easier ways to invest more money. (With a fun little giveaway at the end.)
Front-Load Your Life
Sometimes you’re not saving the money you want to be saving because you’re not making the sacrifices necessary to do so. I personally would rather front load my life by saving as much as I can now so that I can kick back and enjoy myself later.
Right now I am young and able to work and I take advantage of that.
While I definitely don’t advocate extreme measures I do think it’s wise to make sacrifices where you can and build your savings as early on as possible. By doing this you give your money time to compound (earn money for you) and you’ll be so much better off in the long run.
One of the best ways to build wealth is to keep it boring and automatic. This could mean having your investments automatically withdrawn from your paycheck each month and deposited into an employer sponsored retirement plan or it could mean setting up your own retirement account and having a certain amount withdrawn from your bank each month.
There are so many options when it comes to retirement accounts which has resulted in low minimum balances and monthly deposit options. Even if you can only have $5/week automatically invested you need to do it.
Having your investments automated takes away the need for self-discipline. There really are no excuses not to do this.
Invest All of Your $5 Bills
I’ve seen the “save your $5 bill” challenge floating around social media and I think it’s an amazing idea. Instead of just saving this cash in a regular account try investing it.
Start saving every single $5 bill you come into contact with and then once a month (or quarter) deposit the money into your investment account.
Use Your Tax Refund
If you get a tax refund what better way to use it than to make it work for you?!
Tax refunds are a great way to get ahead financially. If you’ve got your debt under control and an emergency fund in place, invest your tax refund. (Or at least a portion of it.)
Take the Match
The employer match, that is.
If you participate in an employer sponsored retirement account do what you can to invest enough to get the full employer match, if applicable. This is a great way to build up your investments without having to come up with extra money yourself.
Invest All Side Hustle Money
Sometimes there’s just not enough money left at the end of the month to invest. If you’ve already cut everything you reasonably can out of your budget your next option is to start a side hustle and invest all of that extra money earned. (Minus taxes, of course.)
Need a side hustle idea? We have more than 50 of them here.
Use the Stash App
We’ve written about the Stash App before and think it’s an amazing tool for new investors.
With the Stash App you can easily invest in causes you care about and companies you like with as little as $5. You can download the Stash App to your phone and invest as funds become available.
Having such easy access to your investments will help you remain aware of them and inspire you to add as much as you can whenever you can.
Giveaway: Win $50 (And Invest That Too!)
In honor of launching their new Android App, Stash Investing is giving away $50 to 50 winners. (The giveaway is open to both Android and IOS users. Giveaway ends March 21st, 2016)
Good luck and happy investing!
This article was sponsored by Stash Invest but all opinions are our own.
Photo Credit: strelok / 123RF Stock Photo
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.