Saving and investing are challenging pursuits, because you never know what’s going to happen tomorrow. Whatever takes place, it could dramatically impact today’s financial moves. Though the uncertainty can be discouraging, it is not reason enough to give up. On the contrary, beating the odds for financial success is a challenge many Britons readily accept. The dilemma for some of these well-intentioned novice investors is getting a proper start.
Establishing Savings and Investments
A recent article shared tips from young entrepreneur, Grant Sabatier, offering advice on how to find money to invest and get established, without an existing stake. He suggests forming a relationship with money, so you’re not intimidated, and frequently looking in on your net worth. Though it may be discouraging in the early days, when you’ve no momentum to speak of, once things start rolling along; checking your net worth can become a source of motivation.
From cutting costs to aggressively steering money to investments, Sabatier suggests making lifestyle changes, until you’ve built a 5-figure portfolio, then stepping back to evaluate whether or not the trade-offs were worthwhile. As your relationship with money grows, the process becomes less intimidating and saving and investing become second nature, like paying bills and shopping for the best deals.
Build Momentum – When you’re starting from square one, building momentum is one of your biggest challenges, establishing a nest egg. A razor sharp focus during your first days investing can help you generate some of the drive needed to reach your financial goals.
Beginning with your initial investment, one success builds on another, until your first benchmark savings goal is within reach. For lasting results, try to get there quickly, so you’re eager to take-on the next challenge. Particularly during the early stages of your long-term investment strategy, speed is of the essence, keeping you moving toward your finance objectives.
Invest Side Earnings – Employment trends include a shift toward “gig” employment, comprised of a series of one-off jobs and recurring “gigs.” The creative employment trend not only supports individuals that make a full time living from part-time gigs, but it also provides opportunities for full-time UK workers to generate extra income, with a “side hustle.” Rather than taking online loans from top payday lenders, an increasing number of professionals are leaning on a side hustle to make ends meet.
Side hustle earnings are often destined for specific spending projects or considered “mad money” to spend as you wish. But what if you invest your side earnings right away, instead of rushing to spend the cash? You’ll be less tempted to spend it frivolously, for starters, and the money can go directly to work, earning interest and dividends.
Use Your Mindset to Build Reserves – Your mindset has a big impact on your success putting by a nest egg. Never mind if you’re a few steps behind, building a retirement pot; there are steps you can take today to get back on track.
One mind-over-money strategy for building wealth is to check your investment account balance, and then find money in your budget to round up. The challenge may deal with relatively small sums, at first, but you can apply the round up strategy on any scale, to help use your positive mindset to maintain momentum. Another similar concept, adopting a double-up strategy starts with accessible investment levels, before challenging yourself to double the amount next year, month, week, etc., as appropriate.
Saving and investing for your future are essential features of sound money management, but establishing an adequate nest egg is sometimes easier said than done. Once you’ve acquired some momentum, managing money becomes less intimidating and it’s easier to get excited about investing. But in the early days, when you don’t have much money to work with, getting started can feel like pulling teeth. When you’re ready to plant your first stake in the investment landscape, these tips can help you get started.