Do You Need Money to Start?
"Investing? That's for rich people," you say. "I'm just working and trying to pay the bills."
Yes, understood. If each month you have more bills than you can pay, or all the money you had set aside gets used up for a car repair or a leaky roof, it's easy to get discouraged. And personal finance articles like this one may imply that all you need to do is set aside $500 or $100 a month as if it were nothing to do that. For some of you, it's survival mode. You can't work more hours, you can't downsize, you can't trim the budget any more.
But maybe some of you reading this could actually trim just a little bit to get started - if the motivation is there. Some of you reading this could ask yourself some hard questions to see if there is any way to open up the budget just to get started with a small amount.
The government knows it's possible.
How do you know? If you start at a company that enrolls you automatically in a retirement plan and increases the amount - automatically - by 1% each year, then most working people find a way to make it happen. The money never hits the checking account, so it's not spent.
Everyone needs this kind of help.
Very few people will sit down once a month and write a check to a mutual fund company or go visit their stock broker and make a payment. There are some who can and will do that. But the vast majority of us need help. We need to be forced in a way. We need to have some kind of mechanism to make us invest in the same way that make our rent or house payment.
It's a fallacy to belief you have to be rich to invest. It's also a fallacy to tell everyone that it's simply a matter of setting up an automated system because the income just isn't there. But if you are in the middle somewhere, can you start small? If you are working and not doing the company retirement plan (such as a 401(k) or other plan), can you make an appointment to talk to your HR department to get started?
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Disclaimer: The views expressed on this website reflect the personal opinions and experiences of the writer. Nothing in this article constitutes financial advice in any way. Information on this website should not be relied upon for investment or business advice. Please consult with a qualified financial professional before making any financial decisions. 3801110