The cost of living is getting higher than before today, for many people, taking home payment does not improve in return for the cost of living. The result is a reduction in disposable income to spend on each salary. If you are one of the many affected millions, you can now move the investment ladder.
Contrary to what most people think, you don’t have to be a five-digit earner to be able to afford some extra investment. Even if you earn a lean income that leaves you with only crumbs after paying the bills, you can still invest with those crumbs and get interesting results in the long run. If you are wondering how to keep your investment portfolio in spite of earning a very low income, the following 10 tips can help you achieve it.
1. Save something every week or month.
Since the only way to start with investment is to have some savings, you will need to save part of your weekly or monthly salary, depending on how you pay. It doesn’t matter if it’s $10 or $100. What matters is consistency: If you save $20 each week, you will get $1,040 at the end of the year-and that’s good enough to start investing in stocks. Similarly, if you save $100 at the end of each month, you will get $1,200 at the end of the year. So, these little sums can add up to large numbers when saved continuously.
2. Start Small.
If you are waiting for the time you will have up to half a million dollars before embarking on the stock investment, then you may not get to invest in the stock because that time may never come. Instead of waiting indefinitely to happen, you can start small by finding low-cost stocks to invest in. Having a small investment has the potential to grow over time is better than not having anything, but just let me hope to have five or six digits before getting started.
3. Consideration of joint ventures.
There are times when your biggest savings won’t be enough to start with stock investment. But you must abandon and reject the idea of stock investment until later when you can afford to raise more money? No! Instead, you should consider grouping with others and investing together.
For example, if you only have $2,000 and you need a minimum of $4,000 to buy some stock, you can approach one or two other people who might be interested, and raise the $4,000 you need. This is a smart way to share your risks with others and learn from them.
4. Be Creative.
There are times when you stay away from traditional rules and practices bring huge benefits. Happens in stock investment, too. You don’t have to put your money in a certain company’s shares just because everyone and the dog do the same thing. I always think outside the box, especially since you have very little money to invest. Consider the investment opportunities that you get to explore with your low capital and still bring huge returns from long term.
5. Be patient.
Stock investment is not for anyone who is broken and needs to make money quickly. It’s not for those who expect huge returns and rapid financial success. The fact is that those who have achieved real success in equity investment have implemented a long-term strategy. Only with a realistic strategy you can make serious progress towards your financial goals. So, always think about the long run.
6. Look before you jump.
Your first investment decision is very important, because its outcome can have a long-lasting impact on you–financially and otherwise. Before investing in any opportunity, critically examine and analyze it. How was this opportunity in the past? How is it likely to rent in the future? What do people say about that? What experiments have people had with them in the past? These and other inquiry questions can help you make informed decisions about stock investment, especially because you can’t afford to lose a little money that you have to invest. The key here is to avoid rushing investment.
7. Watch out for hidden drawings.
If you give me a low income and start your investment portfolio with a very small capital, make sure you’re not wasting even a little money you have on the fees and minimal unnecessary. Before putting your money into any investment, find out all the fees that apply.
8. Find out when to run.
There are times when stock company will change direction; although fluctuations in stock prices are normal. But you have to understand when the decline in stock prices will always be likely, as is the case when the company is hit by a devastating natural disaster or some other disabling problems. In such cases, waiting for a very long period of positive result may cause you to lose badly. So, always get ready to sell your stock when you arise the need, so you can move on to other opportunities.
9. Do not stop investing.
After making a first investment movement, you usually don’t stop saving. Instead, keep saving to invest more in the same stocks or spread your risks by investing in other stocks. Remember, stock investment is a long-term strategy, not a one-time thing.
10. Be positive.
Without a healthy dose of optimism, you will not invest in percent. The only optimism that can motivate you to keep directing your savings is to invest the results that you have not been sure of, but hope will be positive. So, play your cards right and hope for the best.