Investing Capitol

[stabbs]

This may sound like a nublish question but where do people get the money to invest? I personally am using a bit of savings I have- its not alot but enought to trade, and it wont be missed if I lose it. I read about people investing tens of thousands of dollars and I am curious if the large investors earned that in the market or by another means.

[onlinesuccess]

I earned and continue to earn our capital through our online business. It is our secondary income to my primary income - XOM. It has now met and most months surpases the primary income. We live off of the income XOM provides and the online business income goes to mortgage prepayment, investing and trading, and reinvestment into the business. Not exactly in that order, but close.

Our story is probably different than most or some, but that is how it works for us...

[blackhawkzone]

the easiest way to have money to invest is to cut down your spending.

there are places you can go online to look this up but some simple ones

1) pay off credit card debt monthly....stop paying interest
2) pay all bills ontime....no late fees
3) stop or reduce eating out.


what you can do is write down for a month in a journal what you spend money on...you would be surprised.

[Luc1Grunt]

Live debt free.
live beneath your means when you need to.
make smart money decisions (new car vs. used etc.)
save 10% of YOUR money before anything else.
Time
Max 401k's if available
Read "the richest man in baylon"....twice.
Don't be afraid to pay a financial advisor 20% when you easily tip a waiter 15%.....Think about it.
Make ALL your money "grow" more money....interest checking accounts etc.

Can you stomach sacrifice in your youth for wealth in your future? This is where most people stumble and their dreams become "lottery dreams".

[wehttamsivad]

anything you do for free you can get paid to do.

[aiki14]

Live debt free.
live beneath your means when you need to.
make smart money decisions (new car vs. used etc.)
save 10% of YOUR money before anything else.
Time
Max 401k's if available
Read "the richest man in baylon"....twice.
Don't be afraid to pay a financial advisor 20% when you easily tip a waiter 15%.....Think about it.
Make ALL your money "grow" more money....interest checking accounts etc.

Can you stomach sacrifice in your youth for wealth in your future? This is where most people stumble and their dreams become "lottery dreams".

Luc is so totally right it's hard to add anything, but I am too long winded to not add:

Read "the millionaire mind" as well.

I made and continue to make money in Real Estate, when the RE market slacked I put a bunch of capital in the market and have used it for trading. I have always been a saver and have always used professional money managers for the great majority of my assets, I would recommend anyone do the same.

[Clueless]

Some of these have been mentioned.

1) Be frugal in life. Don't spend money if you don't have to. Saving money is 100 tiny insignificant decisions a day to spend or not to spend. Everything adds up.

2) Always spend less every month then you take in.

3) I use Quicken to manage my personal money, and it helps my wife and I stay accountable to the budgets we have set up on the program. Groceries, clothing, etc. This is a great program to let you see your financial standing at any time.

4) Pay no interest. Except for your mortgage of course. Try to pay cash for cars if you can.

5) Pay mortgage 4 times a month with a little bit extra per payment going to principle. You would be surprised how much it affects the length of your 30 year mortgage.

6) Cook. Don't go out just to eat.

7) Cancel cable tv or satellite tv. Unless you use it to make money.

8 ) Be an energy saving nazi of the house. Haha. I try to keep my gas and electric under $100.00 dollars for a single family home.

9) Cut down on things like subscriptions, newspapers, monthy services you no longer use. Ie. Home alarm systems, gardening services, etc.

[Imperator]

I work in a restraunt, make less than 9 dollars an hour and whatever I have left after paying books and tuition and other full time college expenses, I save and invest. So I don't really have a chance to consume anything.

[safeman]

All good advice. Remember also that "they" want your money! "They" are the glam and fab models etc. that are trying to convince you that you need what they have so you can be like them! You do not need a 52" flat screen plasma tv,for example, until you have met your investment goals and then pay for it in full, without credit. The consumer monster wants your money. don't feed the monster.

[stabbs]

Wow- great posts from all! I dont and never have owned a credit card. I think paying 18% on toilet paper is insane. But I definately have some areas where I need to cut back. Eating out is definately one of them. Thanks Aiki and Luc for the book suggestions.

Be frugal in life. Don't spend money if you don't have to. Saving money is 100 tiny insignificant decisions a day to spend or not to spend. Everything adds up.

so true.

what you can do is write down for a month in a journal what you spend money on...you would be surprised.
Great suggestion. Usually by the end of the month I check my statements and wonder where the hell my money has gone. I may try Quicken too to try and track my spending.

[optimus25]

Read the Millionaire next door. Great insight and imperical research on how some people have amassed their fortune.

[optimus25]

I forgot to add that you need to get started early. Compounding interest is your Friend.