Are you wondering how you will be able to come up with an additional $5, maybe even more money, to invest?
Save money today to invest tomorrow
Here are nine ways to come up with an additional five dollars each month to invest in mutual funds.
With the exception of buying expensive coffee, I don’t drink coffee, I have done them all.
1. I feel that paying down debt as quickly as possible is the most important suggestion on this list. If you have credit card debt, your first goal should be to pay down the debt as quickly as possible.
Paying off your highest interest rate credit card debt first will be a great accomplishment. This will free up money so you can build up an emergency fund.
2. Your health is your wealth. Walk or take public transportation to work and/or when going shopping. I believe it is very important for your health to exercise.
Since I hate doing exercises like push ups, sit ups, and/or lifting weights My exercise of choice is walking.
No expensive exercise equipment to buy or expensive gym membership required in order to walk.
I know some of you may say that not having a car is not an option, especially when you have young children. I understand that and I am not directing this recommendation towards you.
However, there are many single people who can walk with a friend(s) or by themselves three or more times each week, weather permitting of course.
My sister and her husband happen to live out in the boonies so a car is absolutely necessary for them.
I have been fortunate to live in areas of the country where the public transportation system is very good.
Being able to relax by leaving the driving to someone else when going from point a to point b is nice too.
Some of the things I don’t miss with owning a car are; car payments, buying gas, paying for parking, insurance, car registration, license fees, and car maintenance costs.
3. Shop at thrift stores. I have shopped at the Goodwill store near me for a number of items in the last five years. For example, I purchased a floor fan that only cost me around $6.
I probably saved a minimum of $20 by buying the fan at a thrift store rather than at a big box store.
I have also purchased a winter jacket for about $18, saving a minimum of $20 by buying a jacket that looks like new.
In addition to purchasing the winter jacket from the Goodwill store, I also purchased a spring jacket for $7.56. This jacket is also like new. At the minimum, I saved $10, more likely $20.
About five years ago, I purchased a 22 inch TV at a store that sells TVs in nearly new condition for only $99 plus tax. I am sure that I saved at least $20.
Just recently, I obtained a set of used laptop computer speakers for this same TV for free from the owner of the same shop. I saved a minimum of $20.
My grocery store has a section in the back of the store where they discount food because the products will expire in the near future.
I save money on things like bread that is a couple of days old, day old donuts and other items such as cakes and cookies on a regular basis.
For the best selection I find that I need to shop between the hours of 10 a.m. and noon.
As you can see, by shopping smart you can save a lot of money without sacrificing your quality of life.
4. Cut your cable bill. About four or five years ago I purchased a flat digital antenna amplifier from a Radio Shack store. It has a radius of 60 miles. Since I don’t watch a lot of TV this works fine for me.
I receive the main TV channels such as ABC, CBS, NBC and PBS. There are probably another twelve to fifteen channels that it picks up. This provides me with free TV and saves me a minimum of $12.95 per month.
Other options are paying a small monthly membership fee to watch Netflix and Hulu on a laptop computer monitor.
If you are paying a high cost for cable TV consider reducing your monthly expenses by cutting the cord on your cable TV service provider.
5. Reduce your utility bill by finding and closing off any air leaking into your home. One of the biggest ways I improved my quality of life was to find and seal off air leaks.
I found a number of leaks that allow for cold air to blow in during the colder months. By closing off these leaks I feel warmer and I reduced my heating bill.
You would be surprised how much cold air comes in from the bottom of the front and back doors.
By sealing off these cold air leaks using a draft stopper and by putting on a sweater I feel much warmer during the cold months and saves me money on my heat bill. I am sure that this saves me at least $15 per month during the colder months of the year.
6. Don’t buy an expensive cell phone. I am not in my twenties, thirties or forties, and I don’t need a cell phone that will do everything under the sun. My goal is to purchase the best cell phone for the least amount of money.
For me it is a Verizon $99 Alcatel flip phone. I purchased it at a big box store, where employees
wear a blue vest, at the end of 2019 and I am very satisfied with my phone. For senior citizens, I highly recommend this cell phone.
The monthly cell phone service only costs me $36 a month through Verizon. That is very reasonable especially since I make very few phone calls per month. The coverage is excellent.
If you are older and/or have some hearing loss, I think that this would be a good phone for you. I don’t use text messaging and I don’t need a phone with a fancy camera.
The camera on this phone is OK, but it is not high resolution.
I consider the battery life to be very good. In addition to all of the above I can turn tracking on or off at will. I leave it off, but for an emergency I would turn it on.
7. My next suggestion is going to be short and sweet. Skip buying one $5 coffee per week. Use that five dollars to pay an additional five dollars on a credit card, put towards an emergency fund.
If you have very little debt and you have a six month emergency fund consider investing the five dollars in a stock mutual fund.
8. Shop for groceries at Walmart and Family Dollar. Peppermint Patties, laundry detergent and a hand crank can opener all cost more at my local grocery store.
9. Buy a used car rather than a new car. Yes, I have purchased both new and used cars. Your new car depreciates a lot in value as soon as you drive it out of the dealers lot.
You should be able to find a very nice three to five year old car with low mileage for a much cheaper price compared to the same car when it was new.
A used car has depreciated quite a bit in the first three to four years. Use that to your advantage.
Another advantage to buying a used car rather than a new car is lower insurance, license and registration costs.
There you have it, my nine ways to save money without having a major impact on your way of life. I am sure that many of you will disagree with one or several of my suggestions, that is fine with me.
Check out this post on eleven common mistakes investors make.
Maybe you have found something in my list that you have not thought about before and will give it a try. Let me know what you think about these nine suggestions by leaving a comment below.
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