We asked ourselves those very same questions, went through those same thoughts, getting more and more frustrated. Sure, we were making enough to pay our bills, and buy food and provide for our two little kids, but we barely had any money left over by the time those needs were taken care of for anything for ourselves, and we did not have much money set aside for any emergencies that may have arisen. We were so frustrated for months, not knowing what to do to get ahead in life. We got caught up in one of the ?get rich quick? scams, and lost a little money, which left us even more frustrated. We came to the conclusion that we needed to make our money work for us, and that in turn, we would get more money and more financially secure as the time goes on.
How do we get our money working for us. We need to invest any spare amount that we have. There are many ways to invest your money now days, that you can invest anywhere from a couple hundred to several thousand. You can invest in real estate and get up to a 15-20% return, you can invest your money in the stock market and get up to 7 to 10% return on your income, or you can invest in an online business and can get up to 30 or 40% return, You will need to make sure that you research whatever avenue you decide very thoroughly so you know what to expect. You will end up get more money on your return and you can either keep turning that around and get more and more of a nest egg built up for your and your family's future, or just cash out, whatever you decide.
A couple years ago, we decided to invest in some real estate. We bought a repossessed house, spent three months fixing it up by painting it, changing the floor, redoing the roof, fixing up the landscaping, putting new cabinets and new appliances and new lighting. We sold it a few weeks after we had put it on the market and walked away with a $20,000 check when it was all said and done. Not to bad for three months of work!
Whether you decide on where to exactly invest your money, do plenty of research. If you invest in real estate, research the current housing market in your area, research the location of the property you are looking at, research different prices for all the things you will buy, and so forth. If you decide to invest in the stock market, do research on what stocks are doing the best, their points, and what kind of return you can expect to get and in what time period. If you decide to invest in a new business, online or not, research what type of business it is, the interest of that particular business and your competition.
There are many other types of investments, you can do. I can not stress enough how important it is to research. You cannot research too much. The more the better, and it will help you out more in the long run. Let's get your money working for you so you can stop living paycheck to paycheck!
An emergency fund is more like a savings account. Emergency funds give you additional buying power when your income is low, or when you have run out of money. For example, if you have a home, and your furnace breaks down you need money to fix the furnace, this is a good example of when an emergency fund would come in handy. It is difficult to wait until next payday to fix the furnace when it is cold outside and the children are shivering.
How Much Emergency Funds Should You Have
While every financial situation is different it is quite clear that if you were to lose your job you would need at least a few weeks to find a new job. As this is an extreme circumstance, you should have at least six months emergency funds built up to get you through paying your bills until you have a new steady job.
Credit Cards are Not Emergency Funds
Many people use their credit cards to get through 'times' when they don't have enough money but this can be dangerous. It can be dangerous because if you don't have the income to cover the fees and purchases made on the credit card it is not going to do your finances any good it will only make you fall further behind.
Save for the Rainy Day
The rainy day is when you lose your job. The rainy day is when you broke your arm and can't go to work. The rainy day is when you were sick for a week and couldn't get to work at all. All of these are examples of rainy days and reasons for why you should have an emergency fund.
How Much Should You Really Save
Think about all the bills you pay for one month, and then add on to that the things you need for one month. Do you have enough money saved to get you through that if you didn't have a job or if you couldn't get to work? Now, think about it if you couldn't get to work for three months, or six months, and add those figures on a sheet of paper. That new bigger amount is how much you should really consider having in your emergency fund, or if you would like to call it, your rainy day fund. Think of the fund like credit card rewards you can use later.
How Can You Save Money
You can save money every week. While it is difficult to save money all at one time, you can do it over a few months and be prepared for the future. You should consider saving just ten dollars a week, or if you can twenty dollars, and you can build yourself a savings account, an emergency fund over time. Having some amount as a start is going to be better than never starting an emergency fund at all.
Cut back on eating out is a good start in saving money. Cut back on the trips you make in your car that is another way of saving a little money. Cut back on the price of gifts that you give to others, make your gifts more meaningful and less expensive, which will help you save money too. Think about the future and save money at the same time.
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Ben L has sinced written about articles on various topics from Binding Machines, Fitness and Travel and Leisure. Ben Levanger runs a few different sites and spends his time dedicated to finding programs that are worth a darn. He runs a site at http://www.limitreviews.com and you c. Ben L's top article generates over 27100 views. Bookmark Ben L to your Favourites.
Landon Mcgehee has sinced written about articles on various topics from Finances, Credit Cards and Credit Card Offers. Find out more as Landon McGehee shares his experiences on personal finances at http://www.everlife.com. We've created an excellent resource for you on the topic of. Landon Mcgehee's top article generates over 14800 views. Bookmark Landon Mcgehee to your Favourites.