Having a savings that you can depend upon during rocky times is an important step towards financial security. However, saving money is difficult for most people. Naturally, there may be some tough hurdles when committing to put $50 aside every month. For instance, if you’re up to your eyeballs in credit card debt, its tempting to use that $50 dollars to make a minimum payment or two. Or maybe while watching late night television, an infomercial comes on for an indestructible knife set for a limited-time price of $39.99. After spending most of the month’s savings, its easy to feel like there’s no point in saving $10. No matter how hard you try, it always seems like there’s a better way to use that $50 than to save it for use years later.
As long as that $50 is sitting there as a chunk of money, there will be the temptation to spend it on something that costs about $50. There is away to avoid this viscous cycle. If that money were to be broken down into smaller amounts, the impulse to spend it would subside.
So, if you were to save about a dollar or two day, how easy is it to put that money aside and forget about? It would be very easy. Here’s how to make saving money easier. Don’t put couple dollar bills aside everyday. Instead, keep all of your change from every transaction every day. At the end of every day, deposit that change into a bank account. This is where you have to be diligent in order for the strategy to work. Don’t spend that change on highway tolls, soda, or junk food. Use dollar bills instead. Toss the change in the cup holder in your car and leave it there until you get to the bank.
If you’re being consistent, you will being adding 1, 2, or sometimes 3 dollars into your account per day. How much are you going to miss that change? Chances are, you won’t miss it at all. At the end of the month you could have $50 dollars sitting in your bank account! If not, $30 or $40 is still great, because you won’t feel like you took $30 or $40 from your paycheck. Over a years time, you could save $600. Ten years from now, that’s $6,000.
Want more help saving your change? Bank of America has a great program called “Keep the Change”. In case you haven’t seen the commercials on television, here’s how it works. If you take your Keep the Change debit card into the store and use it to spend $9.75, Bank of America will round the charge amount up to the nearest dollar and take $10 out of your account. $9.75 will cover your purchase, the remaining $.25 will be sent to a savings account for you. Now you can save your change even when you don’t use cash. What’s even better is that for the first 3 months you are enrolled in Keep the Change, Bank of America will match the amount you save 100%, meaning your savings power gets doubled.
So now that you’ve begun saving, how do you start investing with $50 dollars per month. Do you have to wait a few years? Not at all…
Now the question is, what to do with that money. You could leave it in a savings account. Certainly, you should leave some of your money in a savings account. However, most savings accounts earn next to nothing in interest. Mutual funds might be a better bet return-wise, but it can be difficult getting into those without larger amounts of cash. If you want to make your savings start working for you right now, there are a couple of investment tools tailor-made for the small investor.
Sharebuilder is a internet stock brokerage for small investors. Here investors can set-up an account and buy stocks with very little money. How are they able to do this? Sharebuilder was the first to offer its clients an innovative stock purchasing feature. Instead of purchasing shares of stock for $20, $50, or $100 each, Sharebuilder allows account holders to buy parts of a share. For instance, if you see the Google’s stock is taking off, but $300 per share is way to much for you, you can decide you only want to buy $30 of Google’s stock. Now you own 1/10 of a share of Google. If Google’s share price goes up to $320 your partial share goes up 1/10 of that amount which puts you share value at $32.
Your shares will trade just like any others. If Google has a stock split, so will your shares. If a dividend is announced, your stock will get it’s fair share proportionate to the amount of shares you own. Sharebuilder even offers dividend reinvestment which is a great way for your portfolio to build upon itself. Many billing plans are offered to fit any trading style. The plans are mostly built around how often you plan on trading. Click this link to open an account right now. Sharebulder.com
A second investment option for your savings is the Forex market. While this market is not known as well as the stock market, there is still great earning potential here– as well as room for the little guy. The Forex market is where foreign currencies are exchanged. Every day economic data is being released (budget deficit, Gross Domestic Product, unemployment, etc.) Not only is this information being released in the U.S., but other countries are releasing their data as well. The better a country’s economy is doing the better their currency versus a poor performing economy.
Similar to buying a stock or mutual fund, a currency investor picks a currency they wish to buy, for instance the U.S. dollar. If the U.S. dollar were to be valued at 120 Japanese Yen in the morning when you entered the trade and then go up to 121 Japanese Yen by the afternoon, than you’ve just made 1 Japanese Yen. The broker will automatically convert that back into U.S. dollars when you exit the trade ( 1 Yen = .008 U.S. dollars). So to sum this up, your trade on which you spent only one dollar just made you $.008. Imagine if you spent $50. That would be $.40 or nearly a 1% return in a matter of hours.
It doesn’t stop there, however. Almost every forex broker offers clients leveraged margin accounts. With these accounts, the brokerage may offer you 50 to 1 buying power (sometime even 200 or 400 to 1). This means, if you invest $1, the brokerage will lend you their money for the life of the trade to make the amount invested equal $100. That means, your profit from the previous scenario would be $40.00 or a return of 80% Leverage is the biggest advantage of the Forex Market.
Just like the stock market, many Forex brokers set minimum open balances in the thousands of dollars. But easy-forex.com is a brokerage that understands that small investors need a chance to get in the game as well. Here, the minimum opening balance is just $25
The Forex Market is unfamiliar to many, so here’s a quick recap:
The currency trading (FOREX) market is the biggest and fastest growing market on earth. Its daily turnover is more than 2.5 trillion dollars. The participants in this market are banks, organizations, investors and private individuals, just like you. (click here to read full market background by Easy-Forex™).
Markets are places to trade goods, and the same goes with FOREX. The Forex goods are the currencies of various countries. You buy Euro, paying with US dollars, or you sell Japanese Yens for Canadian dollars. That’s all. The profit potential comes from the fluctuations (changes) in the currency exchange market. The nice thing about the FOREX market, is that regular daily fluctuations, say – around 1%, are multiplied by 100! (in general, Easy-Forex™ offers trading ratios from 1:50 to 1:200). You cannot lose more than your “margin” (your initial investment). You may profit unlimited amounts, but you never lose more than what you initially risked. However, risk only what you can afford and is not vital for your well-being.
Here’s how to get started. Register (Easy-Forex™ offers the simplest and quickest registration process, no obligation); deposit your first trading “margin” amount (credit cards are welcome, only by Easy-Forex™); start trading. You can monitor your trading online, from anywhere, anytime. You have full control to monitor status, check scenarios, change some terms in the deal, or close it. If you want to get on-line training, Register here (no obligation), Easy-Forex™ would be glad to guide you, every step of the way.
By now you’ve certainly realized there are very easy ways to start your journey to financial security. There no better feeling than knowing that if your main income were to suddenly stop, you would have a cushion to fall back on. You don’t need to wait for an inheritance, or a bonus, or the lottery. You can start right now. Go for it!