Saving Investment Money

KristenAnne By KristenAnne, 1st Jan 2013 | Follow this author | RSS Feed | Short URL http://nut.bz/1j0fk6pn/
Posted in Wikinut>Business>Investment

In the last article I discussed how to turn $20,000 into $200,000, and this article will explain how to save up the initial investment and which bank account to use.

Saving Investment Money

In the last article Creating A Retirement Plan I discussed how to turn $20,000 into $200,000 (link can be found at the bottom) but where do you come up with the initial investment of $20,000 and what account should you use?

Create a Budget

It's always difficult to save money, there is always something we want to buy but it takes discipline to save money, once you make it automatic it will be a lot easier. Sit down and make a monthly budget for yourself. Most of us have fixed income and expenses so it is easy to determine our monthly expense.

In order to calculate your variable expense such as groceries, entertainment, gas, etc. keep a monthly journal and write down every purchase you make that month which will give you an idea of what you generally spend. If there is any left over that is how much to contribute to your savings. Also once you can see where all your money goes it is easier to see where you can cut some expenses in order to save more money.

Have Your Money Automatically Transferred

If you can afford to save $100 a month then you can have it automatically transferred to your account monthly. If you are paid bi-weekly you can transfer $50 to an account every payday. I recommend contributing to a tax free savings account - and there are no penalties to withdrawing at any time in case of an emergency or once you have saved enough for your down posit.

If you Have a Variable Income

If you have a variable income (as we do) it is a little harder to determine a set monthly budget. We have a small business and therefore can have a good month and a slow month so we always make sure our account can cover up to three months expenses - we have never needed it but it is better to be safe (especially when you have children) I set aside all the change we accumulate over the month and roll it and put it in our tax free savings account.

If you missed it check out Creating a Retirement Plan when Self Employed (or without Benefits)

You might also like Saving Money on the Grocery Bill with a pretty free budget worksheet

Looking to earn some extra money join WikiNut here

Tags

10 Return On Investment, Future Planning, How To Earn Much Money, Investing, Investment, Investments, Long Term Investments, Retire Early, Retirement Fund, Retirement Plan, Retiring In Canada

Meet the author

author avatar KristenAnne
I'm a mother of one gorgeous baby girl I like to call Boo and also help my husband run a home improvements business. I like to write about business and saving money and the humour of everyday life.

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Comments

author avatar Retired
1st Jan 2013 (#)

great info. thanks for the share

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