How Can You Think about Investing When Money is Tight?

By | August 9, 2013

As with the rest of the world money can be a little tight at the moment and  worrying about having any money left at the end of each month and whether you have paid all the bills is one thing, but finding extra money to invest could seem a little crazy?

It is important that you learn to put some money away each month and it doesn’t matter what end of the scale that you are at, as long as you put something into your investment account.


You might think you know where all your money goes each month but unless you write out a budget you might not notice some of the little things that can add up, and this could be where you could find some money to invest. It is important to get your budget right. It needs to balance; and to do this you need more coming in than you are spending. If you have never written a budget now is a great time to start and that will help identify where your money is going each month and where you might be able to cut back to find some money with which you can invest.

If you have never created a budget it is an eye opening experience but it is not something that can be achieved in a matter of minutes and it will take hard work to stick to the plan that you have created for your money. You will be able to really see what money that you have each month and where it goes. When you are in control of your money, you will start to feel free from the constraints; you will know that your money is working hard for you and not the other way round.


It is not about investing big money each month it is about getting into the habit of investing something. Then when money isn’t as tight you can put more into your investments, and you will not find it so difficult because you know that you can do it already.

Make your money work for you; find the account that you can add money to each month that gives you the best return. You are not looking for the regular saving accounts, because even though they sound great the interest is calculated on a compound basis, and it will not be the best place for your money. It doesn’t even have to be the stock market; it just needs to be the best place that you can find that makes your money work hard for you.

Ideally, you should be looking at putting approximately 10 per cent of your wages into some kind of investment each month. It could be building up your pension or saving to pay off your mortgage early, even building your emergency account, the choice is yours.

Investing in any climate

It is important to see that investing is more than putting money into stocks and shares it is about taking control and making it work harder for you. It doesn’t matter the amount that you invest as long as you get into the habit of investing. Learn to grow your money.


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