14. December 2015 · Comments Off on Where Do I Get The Money To Start Saving and Investing? · Categories: Finance

You might be wondering why anyone would write about saving, investing, and personal finance, when the stock market is down, when times are tight, and when now, with the economy down, many wonder if they’ll have a job tomorrow. This article is for those who believe it is impossible to get started.

Maybe you’re struggling just to make ends meet. Maybe you’ve been saving and investing but have been wiped out.

No one is disputing that sometimes life is hard. But, whatever resources you have, in virtually all cases, it is possible for you to build on what you have. Your resources can grow. Whatever your situation, growing resources beats sitting still and complaining.

The most important time to think about resources is when they are limited. Everyone knows to save during times of plenty to help sustain them in times of scarcity. But, in times of plenty, what you lose today, you’ll regain tomorrow. That is why they’re called times of plenty.

In times of scarcity, everything you do matters. What you lose today, may not be replaced tomorrow. What you keep today will be there for you tomorrow. Whatever you keep gives you a foundation to build upon day after day.

A lot of people believe they are stuck, money is too tight, and there is nothing to be done. Nothing could be further from the truth.

Let’s do a thought experiment. Whatever your situation is now, make up something that makes it financially worse, like an accident, or unexpected car repair.

How would you get by? What would you do?

Using a car repair example, you might have to do without the car until you get the money for repairs. You might ride with a friend, or use public transportation. You might prioritize your expenses to repair the car by giving up something else. For some it may be putting off coffee or cable, others might put off something more substantial. It might be hard but few would go bankrupt. Most would make it through.

If you can be resourceful when events force you to, why not be resourceful now, BEFORE something happens?

How? Well, let’s try another thought experiment. This time there is no car repair. What happens if you make the same changes as if you had to pay for a repair? Now, there is money available! You can pay yourself instead! All you have to do is reroute the money to an emergency fund, to savings, to investing, to pay something down, or to invest in your own education.

The point is you do have resources you didn’t think you had. If you are living paycheck to paycheck it will take time to see significant results, but every little bit is progress.

At first, the goal is simply to grow an emergency fund to cushion against unexpected events. Even if your savings simply go into a jar under the bed, at least when some unexpected event occurs, you’ll already have saved towards the bill. You’ll be in a better position than you would have been had you done nothing. Best of all, if you are persistent, over time your overall position will improve, and there will be fewer setbacks. That is a core principle of personal finance, it is a tool to effectively utilize your resources.

Where do I get the money to start saving and investing? You get the chance to start by using your intelligence to be resourceful with what you already have. Then, you build on what you have by using the tools of saving, investing, and personal finance to improve your situation. This is only one step. There is a lot to this topic, enough to fill many books. Step one is simply to know that you can do it, and to get started. As for your eventual success, it is not only possible, if you are persistent, it is probable.

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